Is Bed Bath And Beyond Closing

Yes, it’s true. After filing for bankruptcy on April 24, 2023, Bed Bath and Beyond announced they are closing their remaining 480 stores. But, why is the home goods retailer throwing in the towel after over 50 years? 

The first incarnation of Bed Bath and Beyond opened its doors in Springfield, New Jersey in 1971. So, you may be thinking that they are closing because their business model is outdated

Yet, similar chains like HomeGoods, Ross, and TJ Maxx are currently expanding! 

A CNN article states that those companies are already looking to move into vacated BB&B locations. 

For this reason, we are going to examine where Bed Bath and Beyond went wrong and what we can learn from it… 

More Like Devastating Debts, Low Stock, and Beyond… 

For many years, Bath experienced year-over-year growth. And as recently as 2018, there were 800 storefronts across the United States. 


3 Main Reasons Bed Bath and Beyond is Closing

  1. Failure to Take Business Online

While the New Jersey-based retailer’s business model is not unworkable in and of itself, its online presence was and is lacking. 

This became even more apparent when the pandemic pushed consumers to e-commerce. The mistake of not getting their business online only made the next missteps worse… 

  1. Late to Pay Vendors

Bed Bath and Beyond rose to fame by having everything from bedding to cookware all under one roof. Because of their large range of products, they worked with many vendors to stock shelves. 

However, as sales slowed down, so did the home goods company’s ability to pay so many different entities. As a result, distributors refused to work with Bath even after payment. 


3. Loss of Identity

Before the restrictions of COVID-19, Bed Bath and Beyond was under new leadership. They hired Mark Tritton who had massive success working with Target. 

Tritton used a strategy that had served him well at Target in hopes of saving Bath — private labeling

Simply put, private labeling is a method where you have a manufacturer put an existing product in your packaging. In certain cases, this strategy is very affordable and successful.

Case and point — celebrity make-up brand, Kylie Cosmetics.  

However, this turned out to be a huge contribution to why Bed Bath and Beyond is closing. 

BB&B lost partnerships with brands like Kitchen Aid, which drew customers to their stores in the first place. This left shelves nearly empty with only their private label products, and those weren’t selling… 

With all these factors together, we can see why Bed Bath and Beyond is closing. 


What is the Lesson from Bed Bath and Beyond Closing?

Ultimately, the business lessons we can learn from Bed Bath and Beyond’s closing are in direct contrast to their mistakes. 

  • Stay current with customer habits and the marketplace. 
  • Maintain good relationships with your business partners.
  • Don’t neglect what made you successful. 

At the end of the day, Bed Bath and Beyond worked for half a century, but they forgot what made them that way in the first place — their identity. 

— GCTV Staff

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