Bed Bath and Beyond

Topics: Bed Bath & Beyond, Retailing, Department store Pages: 7 (2213 words) Published: January 7, 2012
Business Analysis Part I: Bed Bath and Beyond (BBBY)

Management 521/MBAY10K3R1

November 18, 2011


Bed Bath and Beyond, Inc., (BBBY) and its subsidiaries are a chain of retail stores operating under the names Bed Bath and Beyond, Christmas Tree Shops, Harmon, Harmon Face Values, and buybuy BABY. The company focuses on home furnishings and domestic merchandise. The company sells a wide assortment of domestic merchandise. The Fortune 500 currently lists the company at 304.

Business Analysis Part I: Bed Bath and Beyond (BBBY)

Bed Bath & Beyond Incorporated is a specialty retail store with a wide assortment of domestic merchandise, home furnishings, health, and beauty care items. Leonard Feinstein and Warren Eisenberg founded Bed ‘n Bath in 1971 when the company opened a store in New Jersey and New York. They expanded to Connecticut and California by 1985. In 1985, Bed ‘n Bath introduced its superstore format and in 1987 changed its name to Bed Bath and Beyond to reflect their expanded product line. The stores design invites the customer to follow a path around the perimeter of the store. It does not permit for the quick trip to pick up an item without touring the entire store. The design not only controls the customer’s path but also offers an atmosphere of browsing. The company focused on expansion since 2002 through the acquisition of smaller specialty chain stores: Harmon, discount health and beauty shops; Christmas Tree Shops, and buybuy BABY. The "Bed, Bath And Beyond Report Inc. Reports Results For Fiscal Year Ended February 26, 2011" (April 6, 2011, p. 1) article indicates the company has a total of 1,139 stores, which includes 982 Bed Bath and Beyond locations, 66 Christmas Tree Shops, 45 buybuy BABY stores and 46 Harmon outlets. The Bed Bath and Beyond’s vision is to be the customer’s first choice for products and services in home furnishings (bed linens and window treatments); bath items; kitchen and tabletop items; fine tabletop and giftware; domestic merchandise and personal care products. Their strategy is to achieve this objective through excellent customer service, an extensive assortment of products, low prices, an introduction of new merchandising and an expansion of the infrastructure (Bed Bath and Beyond Corporate Responsibility Report, 2011). According to CNN Money (2011), Bed Bath and Beyond trades shares on the NASDAQ National Market under the symbol “BBBY” and included in the Standard & Poor’s 500 Index and the NASDAQ-100 Index. Fortune 500 counts the company among the Fortune 500; currently ranked at 304 in 2011 from 355 in 2009 (304. Bed Bath & Beyond).

Strengths, Weaknesses, Opportunities, and Threats Analysis
Bed Bath and Beyond has a 40-year history in the retail industry. Their strengths have served them well, their weaknesses can be overcome. By keeping an eye on potential threats and taking proactive approaches to opportunities, they continue their successful path. Strengths

Market Leadership. Bed Bath and Beyond is a leader in the domestic home market. They are the nation’s largest store selling domestic merchandise and home furnishings in the United States. Bed Bath and Beyond ranks number 39 out of 100 retailers in 2011 (Schulz, July 2011). Diversified Product Lines. They offer a breadth and depth of selection in their product lines that exceed most department stores (Wachsler, May 2011). They focus on their niche of the market and offer featured brands that include All-Clad, Calphalon, Cuisinart, Dyson, Kitchen Aid, Krups, Lennox, Mikasa, Noritake, Rubbermaid, Waterford, and Yankee Candle. Because of their wide variety of products, Bed Bath and Beyond is a one-stop shop for the home. Acquisitions of Subsidiaries. The acquisitions of the Christmas Tree Shops, buybuy BABY and the Harmon stores has been a significant enhancement to diversifying the product lines offered; continuing on this path...
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