Bed Bath & Beyond Essay

During the time of the case Bed Bath & Beyond (BBBY) was on top of the competition with never missing earnings estimates and constant store expansions. Both their top line and bottom line growth was impressive, especially when compared to competitors. Their expansions were being financed with a large percentage of cash and a small percentage of debt. The debt they did incur was payed off rather quickly leading to high cash accounts in their books. However, this created a problem for BBBY, as many

Strengths A strength in a SWOT analysis is something beneficial to the company while being an internal factor that they control. Two strengths of Bed Bath & Beyond are their registry service and personalized products. Bed Bath & Beyond offers their customers wedding, commitment ceremonies, baby, housewarming, anniversary, college, and birthday registry services. A registry is a listing of items, or a “wish-list”, of specific products that other people can purchase for you. An advantage of a registry

Bed Bath and Beyond is a popular chain store that provides everything that you could want for your home. From products that will satisfy your kutichen and dining needs, home decore, cleaning and storage products as well as children related items, Bed Bath and Beyond has been rated as one of the best places to go to when it comes to home decor. A large part of the reason why the company has been so popular has been partially due to the quality of the products that they provide. Howwever, customers

History and Background Bed, Bath and Beyond is part of the Home Furnishing Stores Industry. This industry finished the 2016 year with $96.57 Billion in sales, a 3.4% increase over 2015. (Yahoo Finance, 2017) Per Yahoo Finance Bed Bath and Beyond Inc. leads the Home Furnishing Stores Industry in terms of market capitalization with a $5.8 Billion market cap. (Yahoo Finance, 20172) This industry is directly impacted by the housing market though despite the housing market crash in 2008, it has remained

Bed bath & Beyond company was founded in 1970 which started by developing superstore concept by partnership of Feinstein and Warren Eisenberg. Both men possessed over decade of retail experience in 1971 they started as Bed n Bath. A small chain of specialty linen and bath shops in suburban of New York. The employees in management at Arlan’s positions the discount chain felon hard during early 1970s the founders sensed an essential change in retailing trends and witnessed the department store performing

and displaying products to the target market, Bed Bath and Beyond can attract more customers to the store. This is important because customers become more aware of what products are offered and how they are spending their money. Bed Bath & Beyond spent considerably less on advertising compared to its competitors. Amazon spent $7.5 billion in 2016 (Green 2017) and Target spent $1.5 billion in 2016 for advertising costs (Media 2017). While Bed Bath & Beyond spent only $418.5 million on advertising in

Bed Bath and Beyond Business Analysis Businesses have to adapt to the ever-changing economy. It is not much of a choice for business leaders to change elements of their organization to stay in competition with their peers. The hardest part, most of the time, is changing the people in the organization to develop the necessary outcome or goal. As a business leader getting rid of people or changing their job specifics is one of the many responsibilities they have to be comfortable performing. Organizations

benefit from expanding its reach to other markets is that of Bed Bath and Beyond, Inc. (BBBY). Warren Eisenberg and Leonard Feinstein founded BBBY in 1971. Primarily a domestic merchandise retail store that caterers to consumers with goods ranging from bedroom and bathroom, and also kitchen and dining room needs. Currently BBBY has stores in Puerto Rico, Mexico, Canada and the United States for a total of 1,504 locations (Bed Bath & Beyond Investor Relations - Investor Overview, 2012). Expanding

BED BATH & BEYOND Suggested Study Questions 1. How would you characterize the business risk of Bed Bath & Beyond? Review their financial performance. Business risk in the case of BBBY is low if you only consider that the products they sell are produced by name brand companies, so any products needing repair could be sent directly to the name brand company. By passing BBBY and that BBBY has no control over the quality of the products they sell and that there are no significant

Bed, Bath and Beyond Case Analysis 1. Study BBBY’s historical results in the “Historical Performance” worksheet contained in the “BBBY” EXCEL workbook. What overall conclusion about BBBY’s recent operating and financial condition do the numbers support? Back up your conclusion by listing the six most critical observations you discern from your analysis of the numbers. Conclusion: BBBY is a home goods industry leader in sales growth, margins and return on equity. The company continues to