Bed Bath & Beyond Reports First Comps Growth Since 2016
Retail Dive | October 1, 2020
Bed Bath & Beyond comps rose 6%, marking the first sales growth in that measure since the fourth quarter of fiscal 2016. They also reported operating profit improved nearly 250% to $270.5 million from a loss of $182.3 million in the year-ago period. Net profit increased 257% to $217.9 million from a loss of $138.8 million last year.
Bed Bath & Beyond wasn't spared from temporarily closing its stores in the spring, but their quick response to fulfillment set it up for success in the second quarter. The retailer introduced buy online, pick up in-store and contactless curbside services. The company also launched same-day delivery at its Bed Bath & Beyond and BuyBuyBaby stores through partnerships with Shipt and Instacart.
The unique reality of the pandemic has given a boost to home goods retailers. Consumers are investing more into their homes and less into other categories like travel, entertainment and restaurants.
Bed Bath & Beyond, which typically receives a boost from back-to-college consumers, had to adapt to an unprecedented school year. Cindy Davis, chief brand officer highlights the fact that the typical buying season for college supplies may be extended this year as 32% of students will be heading back to campus for the first time in 2021. "They have shopping to do. We will be ready to meet their needs, with inspiration, value and ease."