The BBB Over-reaction

action balls black and white illustration
Photo by Pixabay on Pexels.com

Bed Bath & Beyond reported its first quarter numbers on Wednesday and they were dismal…as anyone who has been paying the slightest bit of attention to the retail business would suspect. Sales dropped in half as most of Bed Bath’s stores were closed for much of the period. Wall Street so far is beating up the stock, it dropped 20% the next day, and just about every press story on its report led with the fact the company would be closing 200 stores over the next two years.

Stupid. I think both actions — Wall Street’s and the media — completely missed the point. Of course sales were way off, what did anyone expect? And the company’s critics have been after it for years to close a large number of locations, saying it was vastly overstored. Now that they are doing it, they are getting punished. What was missed were the encouraging signs on e-commerce, omnichannel initiatives and the fact that BBB remains in the sweet spot of retailing right now: the home furnishings business.

Listen, I’m the first to criticize Bed Bath for its many prior mistakes. But I see some positives in yesterday’s news and urge over-reactors to stop…well, overreacting. Here’s my take on Forbes.com which I believe is more balanced — and less Stupid. https://www.forbes.com/sites/warrenshoulberg/2020/07/08/bed-bath–beyond-posts-pandemic-1q-numbers-but-sees-reopens-online-bopis-and-curbside-surges/#4071b57e664a

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s