“We have to offer improved results,” Grove said in a statement. “Top execution, careful cost management, greater supply chain reliability, prudent capital spending, a stronger balance sheet and strong digital capabilities will all be crucial to our success.” Bed Bath and Beyond (BBBY) ousted Tritton from Target (TGT) in 2019. He was previously responsible for expanding Target’s private label brands, which he sought to reproduce in Bed Bath and Beyond. But these items have not caught customers the same way they did to competitors – nor have the company redesigned stores. Tritton’s efforts did little to hide the company’s deep-rooted problems. On Wednesday, the chain reported significantly lower-than-expected earnings for the previous quarter and the brand’s sales fell 27% compared to the same period last year. This led the company’s share to fall by up to 20% at the start of trading. It has now dropped by about 65% for the year. Tritton’s departure was “inevitable” and the earnings report “inspires little confidence in the company,” said Neil Saunders, CEO of GlobalData, in an analyst note. “In our raw view, this was a cosmetic reinvention – copied from Target – with very little substance behind it,” Saunders said. “No wonder it collapses fast.” He added that the company “has collapsed and a change of management is the only way to restore some credibility with investors.” On Tuesday, a new report from Bank of America presented a bleak picture of the retailer, arguing that the company cut air conditioning to quickly cut costs to offset falling sales. Bed Bath and Beyond told CNN Business that any changes to the store’s temperature instructions did not come from a corporation. “We have been contacted about this report and to be clear, no Bed Bath & Beyond store has been instructed to adjust their air conditioning and there have been no corporate policy changes regarding the use of utilities,” he said. a representative. However, Bank of America analysts who visited the stores reported growing concerns, including significantly reduced working hours, reduced utility services, reduced store hours and canceled remodeling projects. Reward programs have also been reduced and replaced. Analysts expect the management of Bed Bath and Beyond to announce more closed stores soon and to stop the opening of Buy Buy Baby stores. Other concerns for the company include the resignation of two key financial executives in recent months, CEO John Barresi resigned in May and Heather Plutino, senior vice president of financial planning and analysis and business finance, also left the company. – CNN Business Nicole Goodkind contributed to this report.
