Coresight Research believes that there will be another wave of retail closings in 2025, because inherited companies are faced with incessant competition.
Bed Bath & Beyond made a return with smaller stores, but some industry experts told Fox Business that the size of its stores does not matter as much as the product itself.
This is where his previous management team missed the brand, according to the founder of CSG Consulting, Kimberly Reuter and Hitha Herzog, detailed analyst and research director of H Squared Research.
Last week. Kirkland’s Inc. finalized an investment agreement of $ 25 million with Beyond, the parent company of Bed Bath & Beyond, Overstock, Zulily and Buybuy Baby, in which Kirkland’s has become the exclusive brick and mortar operator for a New smaller “district” format “bed bathtub and beyond national locations.
In October, when the agreement was announced for the first time, the companies said they would exploit the expertise of Kirkland stores and its imprint of brick and mortar and organize an “assortment of emblematic partners of suppliers inheritance “. Amy Sullivan, CEO of Kirkland Inc.
A bed store and beyond the store is seen on June 29, 2022 in Miami. (Photo by Joe Raedle / Getty Images / Getty Images)
Reuter said that the old bedbathing and Beyond had been riddled with problems such as “mismanagement of stocks, the slow adoption of online purchasing trends and overcoming coupons purchases” that made it Place for the bankruptcy protection in chapter 11 in 2023.
Bath Bath & Beyond Brand returns to physical stores
In June of the same year, Overstock acquired the company’s intellectual property assets for $ 21.5 million and, in October, changed his business name in Beyond Inc., although he continued to be Beat for survival in the middle of the development of development in evolution. Last year, he moved away from an agreement with the group of container stores which would have allowed him to use a section in the store’s real estate locations to present his assortment of kitchen, bath and Bedroom, which would be co-marked.
“The opening in a smaller format will not solve any of these problems,” said Reuter. To exacerbate the problem, the company served customers at a time when wide access to home products was limited. Today, there is incessant competition on the home goods market between Amazon, Temu, Target and Wayfair, said Reuter.
Herzog accepted, saying that even if “the bed, the bath and beyond has an incredible brand capital,” it’s “where its value exists mainly”.
“The challenges of the store did not concern the recognition of the brand, the challenges were linked to what stores did not focus on what the consumer wanted at the local level,” said Herzog. She added that other large -scale stores like Walmart and Target are doing a better job to award a consumer based on this local market.
Reuter predicted that the best case screenplay for these stores is to become a physical outlet for Kirkland’s private brand products as well as for Overstock and Zulily products.
Bed bathtub and beyond closed stores: these companies move
“This piece is starting to look very much like Tjmaxx’s home products stores. We also have potential for these physical locations to become return centers for sisters companies,” said Reuter.
Anyway, Reuter said that if Bed Bath & Beyond and Kirkland do not deal with the deep cause of the company’s failure, supply chain and inventory, “they will fail again “.
Fox Business contacted Kirkland to comment.
People pass in front of a bathroom and beyond the store on October 1, 2021 in the Tribeca district of New York. (Michael M. Santiago / Getty Images / Getty Images)
“In superimposed, the increase awaiting prices, which will in turn increase the cost of the product, could be the perfect storm for another failure,” added Reuter.
On the other hand, Herzog said that Kirkland’s support makes an important way that society is better placed to overcome its previous challenges.
Get Fox Affairs on the move by clicking here
Before, management made decisions that were not exactly in line with what their main customer would like, said Herzog. Today, Kirkland “leads the conversation and creates the roadmap where this business will go,” said Herzog. “With Kirkland supporting them, that makes the difference this time.”
“Without throwing direction in a management point under the bus, they had problems. I don’t think they really understand the pivot. I think they stumbled after the pandemic,” said Herzog. “They did not understand how to make their business agile enough to resist a huge success in the retail industry and their business as the pandemic.”
