Retail stores Bed Bath & Beyond will be closing a few stores while opening a few other stores for the year 2019.
The retail store also operates World Market, Harmon Value and Best Buy Baby.
The retail store expects to open around 15 more stores by the year 2019. “However, we will be closing around 40 stores”, says the Chief Financial Officer Robyn D’Elia. The announcement was made during the earnings call that took place on Wednesday.
D’Elia says that the closures will take place on Bed Bath & Beyond stores. The number of closures will increase further if the lease terms with landlords are not favorable and have to be negotiated accordingly.
The home goods retailer has not shown very good results for the fourth quarter. During this quarter, the company had closed 21 of its stores while opening 3 stores. Currently, there are around 1,500 stores, of which some are Christmas Tree Shops.
The company has found sales increasing in some of its stores where ‘next generation lab stores’ are being initiated. This was tested in 21 stores to bring back the in-store experience with a new assortment of products and through visual merchandising.
Shares of the company have gradually gone down by 80 percent.
The year 2019 has been a jinx to many retail stores. Many retail stores have had poor sales and earnings report. Some had to file for bankruptcy. According to Coresight Research, a global marketing research firm, about 6,500 stores may be closed this year.
E-commerce business is affecting brick-and-mortar businesses. If this trend continues, another 75,000 more stores may be shuttered down by the end of 2026 due to competitive prices from online sales and escalating expenses in brick-and-mortar stores, say Investment bank analysts.
Currently, e-commerce penetration is at 16 percent and it is expected to rise to 25 percent by 2026.