Thread regarding Bed Bath & Beyond layoffs

Why does closing and consolidating store locations not solve the company's issue??

Why does closing and consolidating store locations not solve the company's issue??
I noticed from my research that Bed Bath and Beyond has changed their strategy from being more a community store operating locations in 5 mile radiuses with 200,000 to 300,000 people to capturing 10 mile radiuses with 400,000 to 500,000 people. This is especially seen in the Salt Lake City metro where they used to have 5 stores in Salt Lake County in 5 mile increments to now only have two in 10 mile increments, in Salt Lake City and Sandy. But interestingly, they have kept the Park City location open, even though that area has no where near 400,000 to 500,000 people in its market and has less people than the markets they closed in, West Jordan, Midvale, and West Valley City.
Has this been increasing the sales at Salt Lake City and Sandy, or has this cut off reasonable access to Bed Bath and Beyond in these communities??

If closing and consolidating store locations to save money doesn't save the company, what can reduce the debt and financial issues Bed Bath and Beyond and similar companies have. Similar to Kmart, how does Kmart live the Dave Ramsey lifestyle living off rice and beans not investing in their stores, closing unprofitable stores, still file for bankruptcy, and only have 3 stores operating in the United States, plus 6 in the territories, and being no where near a good financial situation. Whereas, thriving companies such as Walmart and Target spend money opening stores and remodeling existing stores, being in a good financial position. What way saves money and keeps a company profitable??

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| 1501 views | | 6 replies (last August 23, 2022) | Reply
Post ID: @OP+1iluqEcC

6 replies (most recent on top)

Where is that D store that is still open and where is the A store that closed?? Were the Brookfield, WI, Vienna, VA (Tysons Corner), Perimeter Mall in Atlanta, Georgia, and the Pembroke Lakes, Florida stores that closed considered A stores, and the Moscow, Idaho, Walla Walla, Washington, and Park City, Utah stores D stores that are on the axe. Are their any stores that they plan to keep open and renew the leases on?? It seems like there are with the locations receiving remodels.

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Post ID: @1mfg+1iluqEcC

The stores are simply revenue engines.
If they don’t operate efficiently, they will be closed.
It’s all about SG&A.

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Post ID: @1szy+1iluqEcC

from what i've noticed, store closures aren't really strategic in capturing a market, it's just stores whose leases were up, regardless of volume; my store is a slow D volume with a year or two left on the lease, whereas a much more profitable A volume store with a buybuybaby maybe 35 min. north closed a couple years ago because of their lease.

and the way we USED to stay profitable was by having smaller area stores, and not spending money building our own; by having top stock and mid stock, instead of having larger stock rooms or building distribution centers that could refill inventory quickly; by not spending on technology (JDA was still the only program we really used up until 7 or 8 years ago, maybe less). those things all worked fine a decade or more ago, but the regime before MT really tanked us waited way too long to start updating our tech and other strategies. when MT took over, the ship was already starting to sink, he just took a sledgehammer to the leak and turned it into a gaping ho-e.

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Post ID: @szj+1iluqEcC

Some landlords want us out of the location since we renegotiated when COVID hit. So don’t be sure that we can’t get out of those that aren’t expiring at the end of this year.

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Post ID: @vpj+1iluqEcC

Completely forgot the part about paying the cost to break a lease...

Chapter 11 Bankruptcy is really the only way out of getting out of those creditors.

After that, a serious look in the mirror and reorganizing the way they operate.
Closing stores and partnering with Kroger would help bridge the gap.
As well as becoming more of a virtual/digital first company.

The brick and mortar days for specialty stores are coming to an end...slowly but surely.

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Post ID: @vcp+1iluqEcC

They are well past the point where they could save anything to avoid going bankrupt, they simply owe too much. They cannot close all those locations and be profitable. Also, don't forget closing locations will come with a hefty cost for breaking the lease agreement. They dug too deep of a ho-e to recover, face it...it is over.

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Post ID: @wtf+1iluqEcC

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