Bed Bath & Beyond is moving ahead with a successful pilot of self-checkout technology.
Following a test in its remodeled New York City flagship store, Bed Bath & Beyond will roll out NCR self-checkout terminals in select store locations nationwide. Leveraging the NCR POS terminals, Bed Bath & Beyond will be able to offer self-service capabilities to its customers, with the goal of providing additional options for a fast and convenient shopping experience.
In October 2020, Bed Bath & Beyond announced it would Invest $1 billion to $1.5 billion in its business as part of a new three-year strategy to accelerate its omnichannel transformation and drive sales, margin and cash flow growth. This includes a planned iinvestment of $250 million during the next three years to remodel about 450 stores, which represent approximately 60% of the company’s revenue, with a goal of making shopping easy and inspiring.
It will also invest another $250 million to drive modernization and innovation in its technology platforms, leveraging a strategic partnership with Google Cloud and other leading technology providers. As part of its strategic growth plans, Bed Bath & Beyond plans to target five different core customer segments: the nests; the minimizer; the juggler; the innovator; and the creative. It also plans to revamp its loyalty program, which currently emphasizes frequent coupons.
Bed Bath & Beyond is expanding self-checkout in stores on the heels of a disappointing third quarter, which included an increasing net loss and decreasing sales that missed analyst expectations. The company’s performance was pressured by a lack of replenishment inventory due to supply chain bottlenecks that cost it about $100 million.
In addition to streamlining checkout in some stores, Bed Bath & Beyond was also on schedule to close 37 stores by the end of February 2022, part of a larger plan to shutter about 200 total stores.
“As part of our commitment to be a digital-first, omni-always retailer, we are making it easier and more convenient than ever to shop at Bed Bath & Beyond,” said John Hartmann, COO at Bed Bath & Beyond Inc. and president of buybuy baby. “NCR has been an incredible partner along this journey and its self-checkout solution brings an important capability to our stores. We look forward to the continued rollout of self-checkout as part of our transformation strategy that includes technology investments to improve the customer experience.”
“By incorporating cloud-enabled self-scan and checkout technology into its checkout strategy, Bed Bath & Beyond is creating a modern shopping experience that streamlines the trip for customers while simultaneously allowing staff to become more proactive, empowered hosts,” said David Wilkinson, President and GM, NCR Retail. “Ultimately, it’s clear that shoppers today crave convenience and options, and with this technology Bed Bath & Beyond will be able to deliver both.”
Bed Bath & Beyond Inc. and its subsidiaries function as an omnichannel retailer selling a wide assortment of merchandise in the home, baby, beauty and wellness markets. Additionally, the company is a partner in a joint venture which operates retail stores in Mexico under the name Bed Bath & Beyond. The company also operates e-commerce websites under several banners.