Simply Essential, Bed Bath & Beyond’s entry-level price point brand, is “right on target” for consumers looking for value, according to interim CEO Sue Gove.
Union, NJ – While it searches for a permanent CEO, Bed Bath & Beyond’s board is moving to reverse declines in top-line sales, profitability and cash generation.
At the company’s shareholder meeting yesterday, held just two weeks after the ouster of Bed Bath & Beyond president and CEO Mark Tritton, board members pointed to a few bright spots amid the challenges of reanimating the business.
“We have an opportunity to optimize the balance between national brands, direct-to-consumer brands and our own brands to ensure we have the right assortment for our customers,” said interim CEO Sue Gove.
The company will provide “much more” information on that front when it shares an update on its progress in late August, she said.
As was the case during the company’s Q1 investor call on June 29, Gove again pointed to Bed Bath & Beyond’s opening price point private label brand Simply Essential as a house label that is hitting the mark with consumers. Simply Essential is one of nine multi-category owned brands that Bed Bath & Beyond rolled out between February 2020 and May 2022.
The retailer is developing immediate action plans to balance Bed Bath & Beyond’s assortment as it aims to recapture share in stores and online. The company’s loyalty program, which launched on June 23, signed up two million members in its first two weeks, said Gove. BBB is also looking to the Back-to-College season to drive business.
In the meantime, it is working on supply chain stabilization, paring inventory levels and aligning its cost structure to sales.
“We are working with urgency in our efforts and we are very focused on finding the best opportunities available to maximize value for all stakeholders,” said Gove. “The next few weeks and months are critically important.”
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