Bed Bath & Beyond Warns of Possible Bankruptcy. Will Brands Be Impacted?

Bed Bath & Beyond provided a financial update for the third quarter ending November 26, 2022 which they are reporting sales have dropped over 30% totaling a net loss of $385.8 million for the quarter. Inventory constraints and other micro and macro economic factors come into play as the company stated “there is substantial doubt about (its) ability to continue as a going concern”. Bankruptcy relief is currently being considered as a possible solution to allow Bed Bath & Beyond to restructure and refocus to strengthen their financial situation. What does this mean for brands?

Brands will likely not have a significant impact. Below are three reasons why :

1. This recent news does not come as a surprise. With the reduction of stores, decrease in credit ratings, and the cutback on workforces brands have already been well aware of the financial hardship Bed Bath & Beyond is facing and have pivoted accordingly.

2. Unfortunately Bed Bath & Beyond has not been a growth channel for brands for years. Most brands have leveraged competitors such as Walmart, and more so refocused their eCommerce strategy on Amazon and other online retailers such as Walmart and eBay.

3. If you have recently visited a Bed Bath & Beyond store near you, you have likely been aware of the growing empty shelves and clearance items. There are fewer brands selling to Bed Bath & Beyond not only because of suppliers worried about getting paid, but due to the narrow scope of product offerings. Bed Bath & Beyond barely covers a fraction of product categories offered by Amazon, the everything store.

With more brands refocusing their brick-and-mortar and eCommerce strategies to align with their approach for business growth, moving away from low volume retailers such as Bed Bath & Beyond doesn’t pose a negative impact. In fact, better relationships with healthier retailers with less product discounting and more brand control is a positive for brands and retail overall.

To learn more about online marketplace capabilities and how POTOO can help your brand achieve your marketplace goals for 2023 message us on LinkedIn or contact us at info@potoosolutions.com to be connected with an eCommerce specialist today!