This Beloved Home Goods Chain Is Closing More Than 40 Stores ·

09 Jul 2024, 00:00

During the pandemic, Americans nested their way through lockdowns, spending their time at home investing in projects. Both Home Depot and Lowe's have seen sales soar with Statista reporting a 79 percent growth in home furnishing retail sales from April to May of 2020, and another 37 percent from May to June. But not all home good stores are so lucky. Bed Bath & Beyond had previously shared its plans for widespread closures in July and launched its downsizing efforts by eliminating 63 stores in September. But just this week, as USA Today reports, Bed Bath & Beyond leadership lined up the next 43 stores that are closing, as part of the company's plan to liquidate 200 brick and mortar locations by 2022. Read on to find out if your Bed Bath & Beyond is on the chopping block next, and for another store that's closing, check out This Beloved Chain Is Closing All of Its Stores.

The Bed Bath & Beyond closures come as part of a broader plan to trim an expansive and expensive real estate portfolio, and invest more heavily in digital sales. According to CNBC, the company's executives believe that downsizing will "generate annual cost savings of between $250 million and $350 million, excluding related one-time expenses." The 200 stores slated to close reportedly brought in roughly $1 billion in annual net sales in the 2019 fiscal year, meaning the company will need to reroute a portion of those dollars to online sales or remaining stores, which may come as a challenge.

While Bed Bath & Beyond's digital sales rose 77 percent during the pandemic, the company has also more recently taken a hit in trading. On Thursday, Jan. 7, reports swirled about the company's falling stocks, which were down more than 13 percent in premarket trading. This came after leadership announced a five percent decline in sales for their third quarter, due largely to planned store closures and the sale of other assets like Cost Plus World Market. Representatives also acknowledged that "fourth-quarter sales are expected to be lower than a year earlier by a double-digit percentage," according to CNBC.

The Bed Bath & Beyond branches that are closing next—by Feb. 2021, to be exact—are located in 19 states and Puerto Rico. Read on to see if your store is shutting down, and for another chain that's shrinking, check out This Legendary Chain Is Closing Over 1,000 Stores by March.

Read the original article on Best Life.