https://marketrealist.com/p/why-is-bed-bath-beyond-closing-stores/
As Tritton said at the time, the closures were all about bolstering profitability. “We saw there were a number of stores dragging us down,” the CEO told CNBC. “We will continue to look at the rest of our concept doors, now that we have established the data criteria.”
And yet I would say that the real reason is terrible leadership.
Splitting transactions is a deviously brilliant push back on a sloppy metric. Quite a number of customers believe it’s one coupon per transaction as it is.
This is what happens when companies lose focus on the big picture and field leadership is just trying to stay off the naughty list for the latest metric. Stores start to “cheat” doing things that are counterproductive, like splitting transactions, just to look good. More stores join in and while they know it’s wrong, leadership turns a blind eye because they want to look good. Ultimately the stores that play by the rules get punished for below average performance. Wells Fargo opening up all those extra accounts just to make goal is a perfect example of this.
i’m not being cynical here with this response, the DM literally does not care about the transaction amount. the cashiers have been suggested to do things to try and break up single transactions into multiple ones; this might not be the case with every district or all DM’s, but in mine, conversion is the only number they care about
Next time your dm calls, remind him or her about how much higher your average sale was which in turn lifted your sales way above ly. Fill that basket.
stores are closing because the company doesn't care about sales. yesterday our store was up 40% in sales over last year, but we were down in conversion from last year (still 41%, i don't think that's a bad number). when our DM called this morning, do you think he mentioned being up in sales, or down in the stupid meaningless number?
if we had 100 customers each make a one dollar purchase, they wouldn't care we only did 100 dollars in sales, they'd be celebrating 100% conversion
With the way sales have been, if we stay
Open till 2023 we will all be lucky.
So at least another 30-40 more stores will close either by the end of this year OR in January of 2023….
Good to know. Those 500 stores that were remodeled SHOULD feel safe. As for the 400 that weren’t (minus the 150 already closed so about 250 here). I wish you Godspeed because I’d say there’s a 25% chance of closure within the next 2 years 😞🥺😩
Luckily my store was remodeled so I feel somewhat safe.
The day to day events at BBBY is just smoke and mirrors perpetrated by the WOKE Senior Management