Bed Bath & Beyond Results Presentation Deck
Priority #2: Resetting the Cost Structure
Better align our cost structure with the current state of the business
Near-Term Initiatives:
▪ A comprehensive real estate optimization project underway
Plans to renegotiate all leases, including those with longer-dated lease terms
Occupancy savings expected to benefit FY19 and beyond
▪ A review of overhead costs
Completed a workforce reduction that effected ~7% of corporate staff, including executive
officers, vice presidents, directors, managers and professional staff
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In the process of outsourcing certain transaction processing functions to a 3rd party;
elimination of 80 positions expected later in the calendar year
These actions including other changes to the senior leadership structure, will generate
costs savings of ~$30M in FY19 and just over $50M on an annualized basis
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Longer-Term Initiatives:
▪ Increase overall penetration of proprietary private label (PL) brands to differentiate
our customer value proposition
Established PL brands: Wamsutta, SALT, ORG, Bee & Willow, Artisanal Kitchen Supply,
and Olivia & Oliver
New PL home furnishings brands: One Kings Lane Open House and Marmalade
Key preferred national brands: UGG, Therapedic and Brookstone
Optimize cost structure through improved direct import/direct sourcing practices
We see an opportunity for longer-term savings in Cost of Goods
in the range of a few hundred million dollars
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