The coronavirus pandemic has put pressure on the United States and global economy to a degree not seen since the great recession of 2008. The COVID-19 pandemic has thus resulted in the closure of many big box retailers notably including stores such as Steinmart, JC Penny, and so many others Bed, Bath, and Beyond is now just another name to add to the list. In a report filed to the department of labor, Bed, Bath, and Beyond intends to sell its flagship store in the Upper East Side of Manhattan, New York, and furthermore intends to close well over 200 other store locations, though there are over 800 stores remaining open.
The trend of longtime retailers closing their doors is indicative of the transformation of the global market. People are increasingly relying on e-commerce to fulfill their needs. This was only intensified by the coronavirus pandemic. The pandemic forced in person stores to close in an attempt to mitigate the spread of the disease. While this was a smart decision from a public health standpoint, it ultimately contributed to the demise of many retailers. The ‘Real Deal’ a business chronicle reported on the issue and asserted that “the pandemic has left many traditional retailers, who were already under pressure from the e-commerce boom, facing difficult choices. Bed Bath & Beyond’s strategy of inundating shoppers with coupons and stocking its stores with a wide variety of goods was already becoming outdated, thanks to competition from online retailers like Amazon.” Essentially, they failed to AIM—always innovate and market.
The retailer thus faced a dramatic decrease in business and as such a steep drop in revenues. These negative occurrences have forced the longtime retailer to close its doors. The closures are expected to be sent into full swing by the end of 2020 and the beginning of 2021. The plan to close stores is part of the overhaul Bed Bath and Beyond plans to enact. “As we rebuild our authority and establish a truly omni-always shopping experience for our customers, we recently announced a store optimization plan that will see us establish the right network of stores to serve our customers,” company spokeswoman Jessica Joyce told USA Today.
The downfall of longtime retailer Bed Bath and Beyond reflects the increasingly tumultuous and rocky terrain of the business landscape. Bed Bath and Beyond is not the first retailer to go out of business due to the shifting economy, and it certainly will not be the last.
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