BED BATH & BEYOND

Bed Bath & Beyond



Bed Bath & Beyond

Introduction

Bed Bath & Beyond Inc. is a nationwide chain of 575 retail stores selling domestics merchandise (bed linens, bath items, and kitchen textiles) and home furnishings (kitchen and tabletop items, small appliances, and basic house wares). In 2003 Bed Bath and Beyond described annual revenues (gross profit) of roughly $1.8 billion, net income of $339 million and net sales of $4.5 billion, comprising 22% growth in revenue and 32% growth in income as in evaluation to the previous year. In supplement to the 575 Bed Bath and Beyond stores, BBBY furthermore owns 30 Harmon Stores, a discount health, and beauty help retailer, and 24 Christmas Tree Shops, a retailer of home décor, giftware, and seasonal merchandise. Results of operations for both the Harmon Stores and the Christmas Tree Shops are encompassed in the company's consolidated results of operations and have been since the date of acquisition (Duff, 2009).

Discussion

Bed Bath & Beyond is actually the largest superstore domestic retailer, whereas their market share is only 4%. Competitors like Target, Wal-Mart and JC Penney offer a wider kind of merchandise for example apparel and electronics. Since 2002 growth has been a result of acquiring the Christmas Tree Shops and the Harmon Stores. In supplement BBBY believes that their product offerings, customer service and advertising program have contributed to the company's financial success (Berlin, 2009).

The Company's strategy is to achieve objective through excellent customer service, an extensive breadth and depth of assortment, everyday low prices, introduction of new merchandising offerings and development of its infrastructure. Operating in the highly competitive retail industry, the Company, along with other retail companies, is leveraged by a number of factors encompassing, but not limited to, general economic conditions encompassing the housing market, the general macroeconomic environment and related changes in the retailing environment, consumer preferences and spending habits, unusual weather patterns, competition from existing and potential competitors, and the ability to find suitable locations at agreeable occupancy costs to support the Company's expansion program.

Although there appears to be some indication of improvement in economic conditions, the tough conditions influencing the overall macroeconomic environment continued to influence the retail sector in general. The Company believes that the uncertainty in the macroeconomic environment and factors for example the high unemployment rate and issues specific to the housing industry, encompassing a reduction in home values, proceeded to negatively impact consumer confidence ...