Business Insider/Jessica Tyler
- Bed Bath & Beyond is struggling to keep up with its competition.
- Its stock took a hit after the company reported disappointing guidance for 2018 last week, and it was downgraded by the credit-ratings agency Standard & Poor on Wednesday.
- We visited a Bed Bath & Beyond store in Manhattan and found that while the amount of merchandise for sale was overwhelming, it was very clean and well organized overall. It also offered a lenient return policy.
Bed Bath & Beyond is struggling to keep up with its competition.
Its stock plunged more than 18% after the company reported disappointing 2018 guidance last Thursday, and on Wednesday, the credit-ratings agency Standard & Poor downgraded its bonds to the lowest level still considered investment grade, according to CNN Money.
The problem, according to retail experts, could be with Bed Bath & Beyond's stores.
"Too many of Bed Bath & Beyond's stores — especially older ones — are a mess," Neil Saunders, managing director of GlobalData Retail, wrote in an email to CNBC. He continued by saying the stores' products are "crammed into a space that is largely devoid of inspiration."
Whether or not the stores are in bad shape, Bed Bath & Beyond offers its customers some valuable perks. It has a lenient return policy that allows customers to return almost anything for a refund. Even without a proof of purchase, customers can be refunded 80% of the original price they said. In addition, most locations allow customers to use multiple coupons at once, use expired coupons, and use coupons on already-discounted items when making purchases.
To better compete with Amazon on online orders, the store now offers free shipping on orders over $29. Some analysts have argued that while the offer is attractive, it hurts the company's profit margins in that customers might turn elsewhere to make purchases of under $29. The company also recently launched a membership program, called Beyond+, that costs $29 annually and gives customers 20% off every purchase, plus free shipping.
We recently visited a Bed Bath & Beyond location in Downtown Manhattan. Here's what we found:
The Bed Bath & Beyond I went to was part of a shopping center and next to a Barnes & Noble. The store was advertising its wedding and gift registries and same-day delivery service, which costs $15 in Manhattan.Business Insider/Jessica TylerThe customer service center was immediately next to the entrance of the store, and it highlighted its online order pick-up service. Bed Bath & Beyond allows returns of almost any product at any time, with or without a receipt, for a refund. Without any record of a purchase, customers can get an 80% refund.Business Insider/Jessica Tyler
Though reports have said that Bed Bath & Beyond stores are generally messy, the complete opposite was true at this location. Generally speaking, everything was spotless, and each display was carefully arranged.Business Insider/Jessica Tyler
The kitchen department was the first section of the store. It was very well labeled and organized, but I was completely overwhelmed by the amount of everything there was. Merchandise was stacked from floor to ceiling in almost every part of the store.Business Insider/Jessica Tyler
The kitchen department seemed to take up almost a quarter of the store, selling cutlery, baking supplies, appliances, and other kitchen essentials.Business Insider/Jessica Tyler
See the rest of the story at Business Insider
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