It's time to remake the Bed.
New Bed Bath & Beyond Inc. President and CEO Mark Tritton has scoured out the executive suite with the departure of six senior members in a "bold pivot" that reflects new priorities, the company said Tuesday.
Tritton has a new vision for the home-goods retailer that he plans to share in 2020, with plans to streamline decision-making, accelerate transformation and reestablish the brand's "authority in the home space," the company said. This involves a renewed focus on customers, product variety and "a more convenient and inspirational shopping experience," among other goals, the chain said in a statement.
"We've helped millions of people make it easy to feel at home for almost half a century, and our business remains uniquely placed to play an essential role in our customers' lives," Tritton said in the company's statement. "This is the first in a number of important steps we're taking. Balancing our existing expertise with fresh perspectives from new, innovative leaders of change, will help us to better anticipate and support our customers in their life journeys and shopping needs."
Analysts marveled at the speed with which Tritton, a 30-year retail veteran who took his position in November, swept away the top executive layer with the departure of the chief officers of merchandising, marketing, digital operations, legal and general counsel, and administration. The chief brand officer had already resigned last week. Three of those six had been with the company more than 20 years, CNN reported.
Interim people are serving in those roles while Bed Bath & Beyond searches for a chief merchandising officer, digital officer, general counsel, and a combined chief marketing/brand officer.
"It points to decisive and bold actions to execute a turnaround," retail analyst Cristina Fernandez of Telsey Advisory Group told clients, according to CNN.
Details of the chief executive's 2020 vision were not divulged in Tuesday's announcement, which comes as the chain works to close 40 stores. Bed Bath & Beyond has been struggling with dipping sales in comparison to the likes of Walmart, Target, Amazon and Wayfair, CNN noted.
Before coming to Bed Bath & Beyond he was executive VP and chief merchandising officer at Target Corp., where he built the retailer's private-label strategy, revived existing brands and launched more than 30 new brands in 2 { years, according to Chain Store Age. That was followed by eight consecutive quarters of same-store sales growth during his tenure, the trade publication said.
Activist investors had long been pushing for leadership changes, Chain Store Age reported earlier this year. The chief operating officer and senior vice president of stores had already left, according to CNN, and as did the founders.
While it's "not an easy turnaround, given its market share losses and declining profitability in recent years," Fernandez told CNN, "Tritton can leverage his experience at Target and implement a number of changes to improve performance at Bed Bath & Beyond."
Tritton expressed optimism, with a cursory nod to those who had served the retailer saying, "As we look to the future, I would like to thank all those leaving today for their work and commitment to our business over many years."
