Bed Bath & Beyond plans to close 200 stores in the next two years.
The store, who also runs Christmas Tree Shops, stated in its first quarter earnings report Wednesday that of the 200 closures, most would be Bed Bath & Beyond stores, starting later this year.
The decision is, in part, a response to a 49% reduction from temporary store closures due to the COVID-19 pandemic.
The move is also part of a restructuring plan to make the chain more profitable due to increased online sales.
It is currently unclear which stores would be shut down.
Mark Tritton, Bed Bath & Beyond’s President and CEO said, “The impact of the COVID-19 situation was felt across our business during our fiscal first quarter, including loss of sales due to temporary store closures and margin pressure from the substantial channel shift to digital. From the beginning of this crisis, we have taken measured, purposeful steps to help keep our people safe and our customers serviced, and we are proud of the way our teams have navigated this unprecedented challenge with speed and agility. At the same time, our actions to strengthen our financial position and liquidity are enhancing our flexibility and capacity to invest and rebuild our business for long-term success.
“With nearly all stores now open, we are delighted to welcome back our customers and drive an enhanced omni-always shopping experience. We are encouraged by early customer response, including continued strong demand, in excess of 80%, across our digital channels during the month of June, bolstered by the expansion of our Buy-Online-Pick-Up-In-Store (BOPIS) and Curbside Pickup services. We believe Bed Bath & Beyond will emerge from this crisis even stronger, given the strength of our brand, our people and our balance sheet,” Tritton added.