Dozens of Bed Bath and Beyond stores are slated to close nationwide, although company executives haven’t said where.
The home furnishings retail chain announced plans to close roughly 60 stores by the end of the fiscal year, following a lackluster second quarter. The company's fiscal year typically ends in early March.
“With this action, we are increasing the profitability of our remaining portfolio and believe that our remaining fleet will benefit from our renewed focus on driving traffic and operating efficiency,” said interim CEO Mary Winston during a conference call to investors.
Closures are slated to affect approximately 40 Bed Bath and Beyond stores and 20 other concept stores. Bed, Bath and Beyond has roughly 1,000 U.S. stores, including locations throughout Fairfield and New Haven counties. The company also owns hundreds of World Market, Cost Plus, Buy Buy Baby and Harmon locations.
Bed Bath and Beyond originally predicted it would close 40 stores.
The New Jersey-based company, headquartered in Union, reported a 7.3 percent drop in net sales last quarter compared with the same period last year.
“With the assistance of a third party, we have analyzed each U.S. stores' performance, profitability, geographic location and customer demographics to understand how best to position our store locations in various markets across the country,” Winston said.
The company also has begun renovating roughly 160 of its most profitable stores. According to Winston, most of the updates are expected to be completed before the 2019 holiday season.
Bed Bath and Beyond is the latest retailer to announce plans to shutter underperforming locations. It joins GameStop, Forever 21, Payless, Charlotte Russe and Gymboree Group, which all announced closures this year.
Year-to-date closure announcements have exceeded the total recorded for 2018, according to New York-based Coresight Research. The research and advisory firm reported that U.S. retailers announced more than 8,000 store closures thus far, surpassing the 5,844 closures the year prior.