Bed Bath & Beyond Results Presentation Deck
Priority #3: Reviewing and Optimizing the Company's Asset Base,
Including Portfolio of Retail Banners
Near-Term Initiatives:
■ Plans to reduce up to $1B of inventory at retail
over the next 18 mos.
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$194M inventory write-down in FY19 Q2 as a result of this
decision
>$350M of inventory (at retail) to be removed from
Bed Bath & Beyond stores before 2019 holiday season
A quicker reset of inventory levels in both stores
and distribution centers will allow for a faster refresh of the
assortment, and enable store labor activity to be re-focused to
better support customers and drive sales
▪ Completed initial assessment of fleet optimization project
for all Bed Bath & Beyond stores
Analyzed each U.S. stores' performance, profitability, geographic
location and customer demographics
Now plan to close ~60 total stores in FY19, including
~40 BBB stores and ~20 other concept stores
■ Evaluating opportunities for sale lease back transactions
~4M sq. ft of owned real estate, including both retail and
non-retail buildings, and ~500,000 sq. ft. of land
Several offers from interested parties under evaluation
▪ Strategic review of non-Bed Bath & Beyond
business concepts underway
Working with outside advisers, including Goldman Sachs, to
assess how to better align and realize greater value
from certain of these assets
Interest from several 3rd parties
Closing down one of our least productive
e-commerce businesses
Longer-Term Initiative:
▪ Capitalize on heavy lease expiration
cadence over the next couple of years,
including >400 leases across all
concepts
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