Sunday, August 14, 2022

Switching off Bed Bath & Beyond AC to Save Money: Report

These days Bed Bath & Beyond is wetting the sweat of its customers and employees.

The struggling home goods chain – which reported a sharp drop in sales last quarter – is turning off air-conditioning in its stores in an effort to cut costs, according to analysts at Bank of America who have visited the stores. .

According to the report, in addition to shutting down the thermostat, the company has also reduced working hours for its employees and canceled remodeling projects.

“From our store visits, we believe that Bed Bath & Beyond is trying to quickly reduce expenses to align costs [sales] decline,” according to a Bank of America report. The report also claims that the chain will reduce store hours in July when opening hours will be pushed from 10 a.m. to 11 p.m.

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The retailer denies it is money-pinching on utility costs.

The company told the Post on Tuesday, “We have been contacted about this report, and to be clear, no Bed Bath & Beyond stores have been directed to adjust their air-conditioning and utilities’ air conditioning. No corporate policy has been changed regarding usage.” ,

Bank of America analysts who visited the store found the cost-cutting measures to be in place.
Lindsey Nicholson / Education Images / Universal Image Group via Getty Images

In April, Bed Bath & Beyond reported that its sales declined 22% in the most recent quarter ended February 26. Management blamed a supply chain defect for the product shortage at its 771 stores in the US.

The company has been under pressure to sell itself or make significant changes to its business. In March, it faced active investor pressure from billionaire Ryan Cohen — who founded Chewy.com and sold it for $3.3 billion — by adding three new directors to its board.

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A shopper enters a Bed Bath and Beyond store.
There are 771 stores in the United States.
Getty Images

Wall Street doesn’t expect things to improve when the company reports its second-quarter results on Wednesday.

“It should come as no surprise that they may be looking for incremental ways to save money, as sales trends are not going in their favor,” said John Tomlinson, analyst at M Science. “Our data looks pretty negative” for the company and “people are clearly expecting sales to be weak tomorrow.”

Other worrying developments for the union include the recent resignations of John Barresi, chief accounting officer at the NJ-based company, and Heather Plutino, senior vice president of financial planning.

Nation World News Desk
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