UNION, N.J., April 24, 2020 /PRNewswire/ -- Bed Bath &
Beyond Inc. (Nasdaq: BBBY) today announced a further update to
its COVID-19 response.
On April 2, 2020, the Company
extended the temporary closure of all its retail banner stores
across the US and Canada, other
than buybuy BABY ("BABY") and Harmon Face Values ("Harmon") stores,
until May 2, 2020. Based on the
latest guidance from federal, state and local government and health
authorities, and in the interest of the health and safety of its
customers and associates, Bed Bath & Beyond is further
extending the temporary closure of these stores until at least
May 16, 2020. At the same time,
the Company is expanding the network of locations customers can
Buy-Online-Pick-Up-In-Store (BOPIS), or enjoy contactless, curbside
pick-up.
Bed Bath & Beyond is rapidly evolving to meet the changing
needs of its customers during this time. The Company has
converted approximately 25% of its stores across the US and
Canada into regional fulfillment
centers, almost doubling its digital fulfillment capacity, to
support a significant rise in online sales. It has also
commenced curbside pick-up at its Harmon stores, and introduced
BOPIS and curbside pick-up at all BABY stores and Bed Bath &
Beyond stores in Canada. In line with changing guidance, the
Company will now extend BOPIS and contactless, curbside delivery
services to customers at certain Bed Bath & Beyond stores in
the US, starting with a number of stores across Florida and Texas, subject to state and local
regulations.
To support the enhanced regional fulfilment network and
accelerate the introduction of new services for customers, the
Company has been able to bring several hundred associates back from
furlough. In addition, hundreds more new positions have been
created in the Company's ecommerce distribution centers to meet the
increased demand across digital channels, where sales have grown by
over 85% for the month of April to-date.
Mark Tritton, President &
CEO, said, "We're prioritizing the health and safety of our people,
customers and communities by extending the temporary closure of
most of our stores at this moment. This is a fluid situation,
so as well as serving our loyal customers online in their homes, we
will also expand the number of locations where customers can buy
online and pick up at store, or simply drive up and enjoy
contactless, curbside pick-up, in line with local, state and
federal guidance.
"I want to thank our team for their dedication and service as we
do what we can to make it easy for our customers to feel at home
during this difficult time."
In conjunction with the decision to further extend temporary
store closures, Bed Bath & Beyond will also extend the furlough
of the majority of store associates and a portion of corporate
associates until at least May 16,
2020. The Company will continue to pay 100% of the
cost of healthcare premiums for all furloughed associates who
currently participate in the Company's health plan, until further
notice. The Company will also continue to temporarily
reduce salaries by 30% across the executive team, including the
President and CEO, Mark
Tritton. At the same time, as previously announced,
the Chairman of the Board and all other independent directors will
continue to forgo 30% of their quarterly cash compensation.
About Bed Bath & Beyond Inc.
Bed Bath & Beyond Inc. and subsidiaries (the "Company") is
an omnichannel retailer that makes it easy for our customers to
feel at home. The Company sells a wide assortment of domestic
merchandise and home furnishings. The Company also provides a
variety of textile products, amenities and other goods to
institutional customers in the hospitality, cruise line, healthcare
and other industries. Additionally, the Company is a partner
in a joint venture which operates retail stores in Mexico under the name Bed Bath &
Beyond.
Forward Looking Statements
This press release contains forward-looking statements,
including, but not limited to, the Company's plans in response to
the novel coronavirus (COVID-19). Many of these
forward-looking statements can be identified by use of words such
as may, will, expect, anticipate, approximate, estimate, assume,
continue, model, project, plan, goal, and similar words and
phrases, although the absence of those words does not necessarily
mean that statements are not forward-looking. The Company's
actual results and future financial condition may differ materially
from those expressed in any such forward-looking statements as a
result of many factors. Such factors include, without
limitation: general economic conditions including the housing
market, a challenging overall macroeconomic environment and related
changes in the retailing environment; risks associated with
COVID-19 and the governmental responses to it, including its
impacts across the Company's businesses on demand and operations,
as well as on the operations of the Company's suppliers and other
business partners, and the effectiveness of the Company's actions
taken in response to these risks; consumer preferences, spending
habits and adoption of new technologies; demographics and other
macroeconomic factors that may impact the level of spending for the
types of merchandise sold by the Company; civil disturbances and
terrorist acts; unusual weather patterns and natural disasters;
competition from existing and potential competitors across all
channels; pricing pressures; liquidity; the ability to achieve
anticipated cost savings, and to not exceed anticipated costs,
associated with organizational changes and investments; the ability
to attract and retain qualified employees in all areas of the
organization; the cost of labor, merchandise and other costs and
expenses; potential supply chain disruption due to trade
restrictions, and other factors such as natural disasters, such as
pandemics, including the COVID-19 pandemic, political instability,
labor disturbances, product recalls, financial or operational
instability of suppliers or carriers, and other items; the ability
to find suitable locations at acceptable occupancy costs and other
terms to support the Company's plans for new stores; the ability to
establish and profitably maintain the appropriate mix of digital
and physical presence in the markets it serves; the ability to
assess and implement technologies in support of the Company's
development of its omnichannel capabilities; the ability to
effectively and timely adjust the Company's plans in the face of
the rapidly changing retail and economic environment, including in
response to the COVID-19 pandemic; uncertainty in financial
markets; volatility in the price of the Company's common stock and
its effect, and the effect of other factors, including the COVID-19
pandemic, on the Company's capital allocation strategy; risks
associated with the ability to achieve a successful outcome for its
business concepts and to otherwise achieve its business strategies;
the impact of intangible asset and other impairments; disruptions
to the Company's information technology systems including but not
limited to security breaches of systems protecting consumer and
employee information or other types of cybercrimes or cybersecurity
attacks; reputational risk arising from challenges to the Company's
or a third party product or service supplier's compliance with
various laws, regulations or standards, including those related to
labor, health, safety, privacy or the environment; reputational
risk arising from third-party merchandise or service vendor
performance in direct home delivery or assembly of product for
customers; changes to statutory, regulatory and legal requirements,
including without limitation proposed changes affecting
international trade; changes to, or new, tax laws or interpretation
of existing tax laws; new, or developments in existing, litigation,
claims or assessments; changes to, or new, accounting standards;
and foreign currency exchange rate fluctuations. The Company
does not undertake any obligation to update its forward-looking
statements.
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SOURCE Bed Bath & Beyond Inc.