Bed Bath Beyond bets on treasure hunt strategy
Bed Bath and Beyond Inc. says it plans to transition all of its banners to a "treasure hunt format" that will help drive foot traffic and encourage repeat visits.
CEO Steven Temares made the remarks during a conference call discussing the company's third quarter results.
"The newly designed format will essentially transition our Bed Bath & Beyond stores to include additional elements of retail that are working well today both in our own stores as well as in the broader bricks and mortar retail environment," Temares said. "For example, we know that deep value product and the treasure hunt experience are driving foot traffic in-store encouraging browsing and increased purchases and promoting frequent visits. We know this from our own performance across several of our categories within our concepts as well as from seeing the traffic and results of other retailers."
Temares said shoppers love the treasure hunt experience in its Cost Plus and Christmas Tree Shops stores, especially when it comes to consumables such as health and beauty care and food and beverage as well as within the core Bed Bath & Beyond offering.
"Going forward, we plan to put a greater emphasis on these elements in our Bed Bath & Beyond stores and incorporate our successes from across all of our retail concepts to more fully leverage them," Temares said.
The treasure hunt model has so far proven resilient for retailers such as Costco, TJX Companies and others as competition from both online and brick-and-mortar peers intensifies.
For the third quarter ended Nov. 25, Bed Bath and Beyond reported net earnings of 44 cents per diluted share ($61.3 million) compared with 85 cents per diluted share ($126.4 million) for the fiscal 2016 third quarter. Net sales were approximately $3 billion, relatively flat to the prior year quarter. Same store sales decreased by approximately 0.3%.
Bed Bath & Beyond Inc. operates 1,550 stores under the banners Bed Bath & Beyond, Christmas Tree Shops, Christmas Tree Shops andThat! or andThat!, Harmon, Harmon Face Values or Face Values, buybuy BABY and World Market, Cost Plus World Market or Cost Plus.