The besieged company announced a number of changes in its management on Wednesday, including a replacement for Triton. Bed Bath and Beyond, meanwhile, has appointed Sue Grove, an independent director on the company’s board, as its chief executive until he fines someone permanent for the post.
“We need to achieve improved results,” Grove said in a statement. “Top-level performance, careful cost management, greater supply chain reliability, prudent capital investment, a stronger balance and strong digital capabilities will be essential to our success.”
Bed Bath and Beyond (BBBY) chased Tritton from Target (TGT) in 2019. Prior to that, he was responsible for expanding Target’s private label brands, which he tried to replicate in Bed Bath and Beyond. But these items have not caught customers in the same way as competitors – nor the company’s redesigned stores.
Tritton’s efforts have done little to cover up the company’s deep-rooted problems. On Wednesday, the chain reported significantly lower than expected profits for the last quarter, and sales of the brand decreased by 27% compared to the same period a year ago.
This led to a drop in the company’s shares by as much as 20% at the beginning of trading. Now it has decreased by about 65% for the year.
Triton’s departure was “inevitable” and that the revenue statement “does very little to inspire confidence in the company’s trajectory,” said Neil Saunders, managing director of GlobalData, in a note to an analyst.
“We think it was a cosmetic rediscovery – copied by Target – with very little content behind it,” Saunders said. “No wonder it fell apart quickly.”
He added that the company was “broken and a change of leadership is the only way to restore investor confidence.”
On Tuesday, a new Bank of America report paints a grim picture for the retailer, claiming the company has cut air conditioning to cut costs quickly to offset declining sales. Bed Bath and Beyond told CNN Business that any changes to store temperature guidelines do not come from corporate ones.
“They contacted us about this report and to make it clear, no Bed Bath & Beyond store was aimed at adjusting its air conditioning and there were no changes in corporate policy regarding the use of utilities,” said a spokesman.
However, Bank of America analysts who have visited stores have reported growing concerns, including working hours, which have been significantly reduced, reduced utilities, reduced store hours and canceled remodeling projects. Prize programs have also been reduced and replaced. Analysts expect that the management of Bed Bath and Beyond will soon announce more store closures and stop the opening of its Buy Buy Baby stores.
Other worrying factors for the company include the resignation of two key chief financial officers in recent months, chief accountant John Baresi resigned in May, and Heather Plutino, senior vice president of financial planning and analysis and trade finance, also left the company.
– Nicole Goodkind of CNN Business contributed to this report.
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