Cosight Research estimates that in 2025 another wave of retail closures will be because older companies face tireless competition.
Bed Bath & Beyond It makes a return with smaller format shops, but some experts in the field have said Fox Business that the size of its stores does not matter as much as the product itself.
This is where his previous manager team missed the stamp, according to the founder of CSG Consulting Kimberly Reuter and Hitha Herzog, retail analyst and chief researcher H Squared Research.
Last week. Kirkland's Inc. Completed an investment agreement of $ 25 million Beyond, the parent company Bet Bath & Beyond, OverStock, Zuliil and Buybuy Baby, In which Kirkland's became an exclusive operator of brick and mortar and a license holder for the new smaller format “neighborhood” Bed Bath & Beyond Locations at national level.
In October, when the agreement was first announced, the companies stated that they would use the expertise in the Kirkland store and its footprint of brick and mortar and curator “assortment of iconic selling partners”. CEO of Kirkland's Inc. Amy Sullivan stated in his statement at the time that “Kirkland's house has a 58 -year -old inheritance in the home decoration sector and the main strength of our brand, and this organization lies in merchandising and shops”.
Boupel Bath & Beyond Store can be seen on June 29, 2022 in Miami. (Photo by Joe Raedle / Getty Images / Getty Images)
Reuter said Old Bed Bath & Beyond was reimbursed, such as “bad stock management, slow acceptance of online shopping trends and exaggeration when shopping coupons” that caused protection against chapter 11 in 2023.
Bed Bath & Beyond Brand returns to physical stores
In June of the same year, OverStock acquired an assets of intellectual ownership of the company for $ 21.5 million and changed its company name to Beyond Inc. by October, although it continued to fight for survival in the middle of developing retail dynamics. Last year, it retreated from an agreement with a group of containers shops that would allow it to use the real estate section in the shop to show the range of kitchens, bathrooms and bedrooms that would be marked together.
“Opening in a smaller format will not solve any of these problems,” Reuter said. To get worse, the company served customers at a time when wide access to domestic goods was limited. Today there is an inexorable competition in Market for domestic goods between Amazon, Temu, Target and Wayfair, said Reuter.
Herzog agreed and said that while “bed, bathroom and further has an incredible capital of the brand”, it is “where its value exists primarily”.
“The trade calls were not about brand recognition, the calls were about shops that do not focus on what the consumer wanted at local level,” Herzog said. She added that other large boxing shops such as Walmart and Target do better work in attracting consumers based in this local market.
Reuter predicted that the best scenario of these stores is to become a physical sales for Kirkland's private goods, as well as OverStock and Zully.
Bed Bath & Beyond Shutter Stores: These companies are moving
“This game will start to look very much like TJMAXX home shops. We also have the potential to make these physical places return centers for sister companies,” Reuter said.
Regardless of this, Reuter said that if Bed Bath & Beyond and Kirkland's do not deal with the main cause of the company's failure, the supplier chain and the supplies: “They fail again.”
Fox Business asked Kirkland's to express.
People walk around the bathroom and outside the trade on October 1, 2021 in the neighborhood of Tribeca, New York. (Michael M. Santiago / Getty Images / Getty Images)
“He has suggested that the waiting increase of tariffs, which will increase the cost of the product, could be the perfect storm for further failure,” Reuteter added.
On the other hand, Herzog said that Kirkland's support is a significant way that society is better placed overcome their previous challenges.
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Previously, the management decided that it was not exactly in line with what their main customer would want, Herzog said. Today Kirkland's “manages conversation and creates a plan where the company will go,” Herzog said. “With Kirkland, this time supports the difference.”
“Without handing the management back to the point of driving under the bus, they had problems. I don't think they really understood the pivot. I think they came across a pandemic, ”Herzog said. “They did not understand how to make their business sufficiently shaken to withstand a huge intervention in the retail industry and their business as a pandemic.”
