After Bed Bath & Beyond reported yesterday that its 2nd quarter estimates fell short of expectations, shares plummeted more than 21% — the biggest drop in the company’s history.
As the economy hums along, all signs indicate brick-and-mortar won’t go extinct as analysts feared — it will simply evolve. But Bed Bath & Beyond’s bumpy road proves adaptation is easier said than done.
It tried to coupon couponing on…
But now it just can’t make enough money. The retro retailer can only compete with the prices offered by e-commerce competitors like Amazon when it offers 20%+ discount coupons.
But these steep discounts reduce profitability: The company’s margins have now decreased for 26 consecutive quarters, and there is no hope at the end of this shopping aisle
‘We’re gonna need a cleanup in the Beyond department’
After the company’s stock fell 50% in 2017, analysts thought the closure of Toys ‘R’ Us might help the struggling home goods chain (which competed with Toys ‘R’ Us in the baby aisle).
But the toy-maker’s bankruptcy may have simply foreshadowed Bed Bath & Beyond’s own journey to the great beyond.
Yesterday, after the company’s worst day in 18 years, Bed Bath & Beyond announced that it had hired 2 management consulting firms to help keep the corporation off the clearance rack.