Now isn’t the best time to be running a business in the home sector.
Bed Bath & Beyond, as well as At Home, are both struggling on the stock market.
At Home just had an awful quarter, as the retailer’s stock lost half its value. Bed Bath & Beyond is also having a rough time, and the numbers are in as of Wednesday night. The company has reported a 6.6% drop in sales, which fell short of analysts’ expectations, as they were only expecting a 3.8% decline. To make matters worse, the company is still struggling in its managerial department. Executives at Bed Bath & Beyond were recently engaged in a battle with a group of activist investors who want to overthrow the board and appoint a new chief executive. “The company has not kept pace with how the customer has evolved and how consumers shop today,” said interim CEO Mary Winston during a conference call on Wednesday.
Things are so bad at Bed Bath & Beyond that the company’s stock has shed 90% of its value over the last five years. Many are now wondering if the company will have a chance at turning things around. The fallout of the recent battle between angry investors and top executives has left the company in an even deeper hole while wider trends in the brick-and-mortar retail industry paint a dire picture for the company’s future. Despite recent efforts to lower prices, Bed Bath & Beyond still can’t compete with other retailers in pricing. When it comes to competition from Amazon, well, there is little competition to speak of in the area of prices. As the company’s interim CEO puts it, “There needs to be a fundamental change in our approach.”