American retailer Bed Bath & Beyond has hit a rocky road in its retail recovery following the COVID-19 pandemic.
The company announced first quarter sales have plunged by 25 per cent compared with a year ago to $1.5 billion with a net loss of $358 million and it has made some management changes with Sue Gove being named as Interim Chief Executive Officer, replacing Mark Tritton who leaves his role as President and CEO and as a member of the Board.
Also, news reports in the US have indicated the brand has reduced some store hours and reduced air conditioning in some stores to cut down on costs.
“I step into this role keenly aware of the macro-economic environment. In the quarter there was an acute shift in customer sentiment and, since then, pressures have materially escalated. This includes steep inflation and fluctuations in purchasing patterns, leading to significant dislocation in our sales and inventory that we will be working to actively resolve,” said Gove in a statement.
“The simple reality though is that our first quarter’s results are not up to our expectations, nor are they reflective of the Company’s true potential. The initiatives we are instituting today are just the first steps in putting our business on firm footing to drive our future success. I look forward to working with the Board, the management team, and our Associates to immediately address our supply chain challenges, market share recapture, inventory and cash optimization, and cost structure alignment.
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