Bed Bath & Beyond plans to shutter about 200 stores over the next two years. On July 8, the company published an investor relations presentation that revealed Bed Bath & Beyond intends to "lean into store closures" and "leverage significant lease expirations coming due." The Bed Bath & Beyond has floundered in recent years, thanks to the coronavirus pandemic and previous leadership spats and financial struggles. Visit Business Insider's homepage for more stories.
Bed Bath & Beyond is looking to shut down about 200 "redundant" stores over the next two years. The company announced the closures in its first-quarter investor-relations presentation. The slide deck said the closures would "mostly" affect Bed Bath & Beyond. The company also owns retail chains like Buy Buy Baby and Cost Plus Inc. Going forward, Bed Bath & Beyond will "lean into store closures" and "leverage significant lease expirations coming due" in an effort to turn things around, according to the presentation. The company has also cut "expenses associated with the maintenance of stores." The majority of Bed Bath & Beyond store associates and certain corporate employees are furloughed because of the pandemic. The pandemic hit Bed Bath & Beyond hard, prompting the retailer to temporarily close all of its stores on March 23. The company suffered a net loss of $302.29 million in the first quarter, down from $371.09 million a year ago. Sales plunged 49%, sinking from $1.31 billion from $2.57 billion in 2019. In an earnings call with analysts, Chief Financial Officer and Treasurer Gustavo Arnal said the drop in sales occurred "primarily due to the temporary store closures." Most of Bed Bath & Beyond's stores have since reopened. But Bed Bath & Beyond's struggles date back to beyond the onset of the coronavirus pandemic, as it has faced declining sales. Former Target Chief Marketing Officer Mark Tritton took on the role of CEO in November, several months after a group of activist investors pushed for the ouster of CEO Steven Temares. The retailer announced its plans to close 44 stores across eight states earlier this year. SEE ALSO: The rise and fall of Bed Bath & Beyond, one of America's most iconic big box retailers Join the conversation about this story » NOW WATCH: Victoria's Secret is closing dozens of stores this year — here's why the brand has failed to keep up
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Target, Kohl's, and Nordstrom are rolling out holiday deals before Thanksgiving, killing the shopping season as we know it
For many retailers, the holiday shopping season will begin well before Thanksgiving this year. Retailers want...For many retailers, the holiday shopping season will begin well before Thanksgiving this year. Retailers want to avoid crowds and large order volumes that could lead to delays. Complicating matters, UPS, FedEx, and the US Postal Service have all announced surcharges on holiday shipping that will go into effect later this year. Visit Business Insider's homepage for more stories. This year, shoppers might start to see holiday deals roll out alongside leftover Halloween candy. A growing number of retailers have said that due to the coronavirus pandemic, they will shift the timing of their holiday promotions to avoid the usual rush in November and December. Target recently said that it would close its stores on Thanksgiving and start rolling out its holiday deals in October. During the company's earnings call on August 19, CEO Brian Cornell said Target would have to "stay nimble" to adjust to a "very different holiday season." "We're going to put a big premium on ease and convenience, delivering great value, but will emphasize safety. And we'll also make sure that our guests knows that those top items and that great value is going to be available throughout the season," Cornell said, emphasizing that the store's same-day fulfillment options would give shoppers flexibility on the timing of their shopping. Black Friday as a shopping holiday has been declining in importance over the last several years as spending continues to move online and discounts become more prevalent year-round. Still, beginning holiday deals in October represents a big shift to a seasonal schedule that usually sees retailers double down on the period between Thanksgiving and Christmas. A number of retailers, including Walmart and Best Buy, have joined Target in saying they would keep stores closed on Thanksgiving. Nordstrom said in its own earnings call on Tuesday that while it would likely stop short of decorating stores for Christmas before Thanksgiving, it would make gifts available earlier in the fall than usual. "I think it's pretty clear that there's an opportunity for us to sell gifts prior to Thanksgiving," Pete Nordstrom, president and chief brand officer at Nordstrom, said during the call. The changes aren't just about physical stores, though. Shipping volumes have been unusually high as consumers opt to shop online and largely stay home amid the ongoing pandemic. Victoria's Secret and Bath & Body Works parent L Brands similarly said in earnings that it would spread its holiday promotions over a longer period of time rather than concentrate them in the fourth quarter, when it typically sees the "majority" of its annual sales and profits due to gift-buying. The company said it would do so because of "traffic constraints imposed by social distancing protocols in stores and capacity restraints in our direct channel distribution centers," adding that it had a "very cautious outlook about our ability to manage our typical holiday volumes." Complicating matters, UPS, FedEx, and the US Postal Service have all announced surcharges on holiday shipping that will go into effect later this year. Spreading deals out over a larger period of time could help retailers better manage the impact of those surcharges. In Kohl's earnings call, CFO Jill Timm referred to the surcharges as a "headwind" and said the company is working through alternatives to avoid them. Kohl's is also looking to get holiday shopping going in October. The pandemic has disrupted the usual retail calendar in more ways than one. The back-to-school shopping season, for example, doesn't seem to have provided the sales surge that certain retailers usually see, as distance learning has continued for many students across the country. Abercrombie & Fitch CEO Fran Horowitz told CNBC that she expects both back-to-school and holiday shopping to stretch on for longer than usual. She called the trend a "flattening of the curve." "Maybe the peak [around] Black Friday isn't as big, but there is still a lot of opportunity in December to do a lot of business," Horowitz told CNBC. SEE ALSO: Victoria's Secret parent L Brands warns it might not be able to handle the holiday rush, as retailers plan for a shopping season unlike any other Join the conversation about this story » NOW WATCH: Why thoroughbred horse semen is the world's most expensive liquid
Dollar Tree and Dollar General sales soar despite pandemic fears forcing customers to limit shopping trips
Consumers are continuing to shop at dollar stores as the coronavirus pandemic rages on. Both Dollar...Consumers are continuing to shop at dollar stores as the coronavirus pandemic rages on. Both Dollar Tree and Dollar General reported strong earnings on Thursday, as a result. Dollar Tree — which also owns Family Dollar — saw a surge in discretionary spending in its latest quarter. Meanwhile, Dollar General continues to boost its fresh grocery capabilities as it focuses on expansion. Visit Business Insider's homepage for more stories. Even as coronavirus fears prompt consumers to rethink their shopping strategies, dollar-store giants Dollar Tree and Dollar General continue to win over deal seekers. Both chains posted second-quarter earnings results on Thursday. Dollar Tree reported a 3.1% increase in year-over-year same-store sales, while subsidiary Family Dollar saw comparable sales climb 11.6%. Combined, the Virginia-based retailer's net sales increased 9.4% to $6.28 billion. Tennessee-based Dollar General's same-store sales also grew by 18.8%, with net sales jumping 24.4% to $8.7 billion. The dollar-store segment of the retail market has long been known to thrive during tough economic times. Dollar stores have been soaring during the pandemic to date, even eclipsing rivals in the adjacent grocery market. Dollar stores like Dollar Tree and Dollar General additionally represent "one of the few bright spots in the retail sector" in terms of customer store visits during the coronavirus, according to foot-traffic tracker Placer.ai. 'Shopping with a purpose' Dollar Tree saw a big rebound in discretionary spending, which had been down at the company since Easter. Dollar Tree president and CEO Mike Witynski also said that shopping trends have shifted since the start of the pandemic. "Consumer shopping patterns are evolving," Witynski said in a statement. "Customers are shopping with a purpose, while looking to minimize risk and exposure. As a result, we are seeing material increases in average ticket, while seeing a decline in average visits." Dollar General CEO Todd Vasos highlighted the same trend, telling analysts that while spending was up, "customers consolidated trips in order to limit social contact." In its earnings statement, Dollar General credited the COVID-19 pandemic for driving "consumer behavior" that has "had a significant positive effect on net sales and same-store sales." The company has seen a boost in consumables, seasonal, and apparel in recent months – with the largest sales increase in home products. Despite the positive earnings results, the dollar stores did face a number of challenges during the last quarter. As an example, Dollar Tree said that pandemic and civil unrest-related spending — in the form of employee bonuses and repairs of stores damaged in riots — cost the company more than $150 million in the period. Witynski also said that both Dollar tree and Family Dollar saw inventory levels decline in certain categories, partly due to "high customer demand for paper towels and cleaning supplies." What's next for the dollar store giants Built up momentum during the pandemic has allowed both Dollar Tree and Dollar General to continue expanding. Dollar Tree opened up 131 new stores — while shuttering around 26 — during the quarter. Meanwhile, Dollar General has launched 500 new stores so far this year, and remodeled or relocated an additional 1,016. Executives from both companies expressed optimism about the coming months. Witynski said that, while back-to-school spending underwent "volatility" due to uncertainty about school openings, the company hasn't seen overall sales in the category decline. He also expects similar results for Halloween, saying that consumers would likely shift spending from candies for trick-or-treaters to decorations. "Since they're spending more time at home, they want to decorate their homes more and invest in their homes more," Witynski said on the earnings call. Beyond seasonal items, Witynski said "anything related to stay at home, such as lawn and garden and outdoor grilling, has continued to perform very well" as consumers continue to congregate inside during the pandemic. In-demand products at Dollar Tree and Family Dollar also include apparel like loungewear, sleepwear, slippers, and athleisure garments. Meanwhile, Dollar General is forging its path into e-commerce and grocery with its DG Fresh initiative, order pickup, and cooler expansion program. COO Jeff Owen told analysts that the company has already installed 60,000 cooler doors in its fleet of stores, up from its target of 55,000. First introduced in January 2019, the DG Fresh initiative is the dollar-store giant's push to establish fresh and frozen-food options in its stores, which have traditionally lacked a grocery element. Currently, Dollar General delivers grocery products to more than 9,000 of its total 16,500 locations. Owen added that Dollar General has added 55 new products to DG Fresh. The company has also doubled down on its push for new and improved private brands, as they represent "opportunities to further enhance our value proposition." Are you a dollar store employee? Email confidential tips to email@example.com.SEE ALSO: Shoppers flooded dollar stores to stockpile cheap goods during the pandemic — here's why that's been a major boon to Dollar General Join the conversation about this story » NOW WATCH: Dollar stores are a billion-dollar industry. Here's how they get customers to spend more money.
Walmart reported quarterly earnings on Tuesday that crushed Wall Street's estimates, boosted by a huge surge...Walmart reported quarterly earnings on Tuesday that crushed Wall Street's estimates, boosted by a huge surge in ecommerce. Shares of Walmart climbed as much as 6% in premarket trading Tuesday before paring those gains to trade lower. Walmart's ecommerce sales soared 97% in the second quarter, as the coronavirus pandemic boosted online shopping. Watch Walmart trade live on Markets Insider. Read more on Business Insider. Shares of Walmart surged as much as 6% in premarket trading Tuesday before paring those gains to trade lower. The whipsaw in trading comes after the company reported quarterly earnings that crushed Wall Street's estimates. Here are the key numbers: Adjusted earnings per share: $1.56 reported, versus $1.25 (expected) Revenue: $137.74 billion reported, versus $135.5 billion (expected) In addition to the revenue beat, Walmart's ecommerce sales soared 97% in the second quarter, as the coronavirus pandemic boosted online shopping. US same-store sales also grew by 9.3% in the quarter, driven by general merchandise and food purchases. Sam's Club had a solid quarter, with same-store sales up 13%, even though reduced tobacco sales weighed on the figure, the company said in a press release. Ecommerce at Sam's jumped 39%, and growth in membership was the highest quarterly increase in more than five years. Operating expenses as a percentage of net sales increased, largely due to spending the company has done to address COVID-19. Walmart has hired hundreds of thousands of workers amid the pandemic to stock shelves, clean its stores, and fulfill online orders. The big-box retailer did not provide guidance for the rest of the year, given the uncertainty of the pandemic. It first withdrew its guidance in the first quarter. Walmart has gained 14% year-to-date through Monday's close. Join the conversation about this story » NOW WATCH: Why thoroughbred horse semen is the world's most expensive liquid