The e-commerce invasion is claiming another scalp as the large North American retail franchise Bed, Bath, and Beyond (BB&B) announced that they plan on closing forty retail locations as a result of dipping profits cut into by competitors and online sales that have been harming their brick-and-mortar locations for decades.
According to a recent story at CNN, “Executives said this week that the company’s sales are still declining and it lost money last quarter. It expects to shutter more than 40 stores if the company cannot negotiate better lease terms at some locations — but the company also has plans to open 15 new locations. The company has 1024 stores in the United States, Puerto Rico, Canada and Mexico. CEO Steven Temares told investors during an earning call earlier this week that Bed Bath & Beyond started experimenting with 21 ‘next-generation lab stores’ last year, and they’ve fared better than other locations.” This comes at a time when 74% of online consumers will first check for products and prices on Amazon before making a final purchasing decision, and the number of overall middle-class consumers are opting to make more of their regular, everyday purchases online instead of making the trip out to a traditional physical store.
However, BB&B’s experimental “next-generation lab stores” might be the company’s saving grace by turning the traditional retail experience into something more hands-on for potential buyers, which alone is a great marketing trick as well in order to get people to want to walk in and consider purchasing a product they otherwise wouldn’t consider.
BB&B CEO Steven H. Temares believes that these lab stores will help breath new life into the brand, as well as have a “greater emphasis on home decor, food and beverage, and health and beauty care.” The CNN report states that by giving different layouts among the stores to highlight different merchandise, customers will have more of a reason to make a visit to different lab locations. The report also states that BB&B saw through their data that “Sales in the experimental stores were 2.2% higher than comparable” stores.
Source: CNN, TopNewsGazette.com