BBB Sets High-Growth Target
Cecile Corral -- Home Textiles Today, January 2, 2006
Union, N.J. —When gazing into the crystal ball, it appears that both outright unit expansion and the “beyond” aspect of the Bed Bath & Beyond business will propel growth in the coming years.
During the third-quarter earnings call on Dec. 21, BBB executives indicated that in “years to come” the company can grow its store count to “well over” 1,100 – a roughly 50 percent increase from the 743 units it expects to have in operation by February when it closes its fiscal year. In addition, BBB will focus on expanding its mostly non-textile Christmas Tree Shops and Harmon health and beauty formats in the years ahead.
“While we are pleased that we enjoy a dominant position in [the home goods retail] sector, our share of the approximately $100 billion [business] remains relatively small; we look forward to increasing our share of the market,” said Warren Eisenberg, co-chairman of the board.
Other vehicles supporting future growth, both domestically and interactively, include “superior customer service, new merchandising initiatives, information technological enhancements and human resources development,” said Steven Temares, president and CEO.
The retailer said it continues to “regularly and systematically explore” other potential opportunities, such as international expansion, acquisition and additional share repurchases.
In the meantime, BBB is “staying on message” during this notably competitive fourth quarter. “This holiday season has produced an extreme promotional retail environment which became exceedingly aggressive over the Thanksgiving weekend and has persisted since,” Temares said. “We chose to stay on message with our customers and maintain a consistent level of promotional activity.”
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