Thanks for Visiting!

Register for free to get the full story.

Sign Up
Already have a Placer.ai account? Log In

The Case For Bed, Bath & Beyond

by 
Ethan Chernofsky
 on 
August 6, 2019
The Case For Bed, Bath & Beyond

Bed, Bath & Beyond has been in the news of late for all of the wrong reasons. An internal shakeup led by activist investors is taking place alongside a search for a new CEO, and the company’s practices have led to some to say they are ‘running out of time’ to turn things around.

We dove into the location analytics surrounding Bed, Bath & Beyond’s performance to identify the areas that could serve as the foundation for a successful turnaround.

Significant Decline

The home goods giants has experienced a significant decline over the last few years. To show the point in context, we compared foot traffic data with another leader in the sector - Home Goods. We analyzed both companies' visits compared to their respective baselines for the period from January 2017 through July 2019. Bed, Bath & Beyond (blue) saw a 2019 that routinely produced weekly visit numbers that were 30% or more below the baseline. On the other hand, Home Goods trended up throughout 2018, with 2019 continuing on the performance. This comparison is critical as it shows that there is still a strong consumer appetite for buying products like these in-store.

Areas of Opportunity

The question then becomes, where can Bed, Bath & Beyond (blue) find inspiration for changes that can reverse the trend. One such area is visit duration, where the brand sees 9.1% lower time in store than Home Goods. 40% of Bed, Bath & Beyond visitors spend 15-29 minutes in a branch, as opposed to less than 30% for Home Goods, who instead enjoy advantages in every period beyond 45 minutes. This indicates a significant strength for Home Goods, and the difference speaks to a need for Bed, Bath & Beyond to create experiences that increase visit duration, leading to a higher chance of driving purchases.

Another potential opportunity can be identified by analyzing the Customer Journey data for these brands. Bed, Bath & Beyond visitors are 11.3% more likely than Home Goods shoppers to continue their shopping experience post-visit and 51.2% more likely to visit a restaurant after. This presents powerful opportunities through co-tenancy or even in-store partnerships to leverage this behavior. For example, identifying the ideal ‘neighbors’ in a shopping center could help drive more traffic or even offer the ability to integrate a complementary partner in-store.

The Upscale Play?

Another area of significant difference between the two brands is the appeal to high-income audiences. Home Goods sees massive advantages in visitors with higher incomes. This includes a 22.8% advantage in visitors with a household income between $100-125K, 32.6% more of their visitors making between $125-150K, 87.0% more making between $150-200K and 25% more of those making more than $200K.

This speaks to opportunities on both sides of the spectrum to focus existing stores on core target markets. Target has been receiving rave reviews for targeting stock to the local audience, and the same process could impact Bed, Bath & Beyond's growth. The ability to fit a product line to the local audience is a key factor to boosting sales on a store-by-store basis.

What Comes Next for Bed, Bath & Beyond

There are significant questions surrounding the company’s turnaround. Yet, it would be incredibly premature to assume that their demise is inevitable. The company enjoys significant brand recognition and powerful retail assets. By improving a few core areas, there is a strong ability for the home goods leader to drive an impressive turnaround. Focusing on extending the time in store, better focusing locations to the local audience and leveraging existing assets could trigger a return to glory.

Can Bed, Bath & Beyond steer their way into future success? The data may provide the earliest indicators.

Get 3 brand & industry
breakdowns every week

Subscribe to the newsletter

Great! Prepare your inbox for data-driven insights...
Oops! Something went wrong while submitting the form.

Get a Demo

Please enter your first name
Please enter your last name
Please provide a valid email
Please enter your email
Please enter company name

Thanks for reaching out!

One of our experts will be in touch soon

Try Placer.ai Free
Oops! Something went wrong while submitting the form.
Pent-Up Demand Ahead of October Sales Events
4 Strategies Retailers are Using to Drive Traffic to Their Venues
5 Key Regional Grocery Players Impressing in 2023
Upscale Kitchenware Trending Up
Costco Finds More Room for Growth
Four C-Store Chains Making an A-Grade
National Parks + Outdoor Summer Activities
Diving Into Darden: Summer 2023 Update
The Summer Event Effect
Messi: Massive in Miami
Looking Back on Back to School 2023
The Anchor Recap: August 2023
Placer.ai Office Index: August 2023 Recap
Placer.ai Mall Index: August 2023 Recap
Placer.ai White Paper Recap: August 2023
Starbucks Pumpkin Spice Latte Strikes Again
Big Scoop: We All Scream For Ice Cream
Sports Away: Lululemon & Nike’s Momentum Continues
Summer Visits Heat Up For Recreation and Outdoor Gear Chains
No CSS overwrite - July 2023 Office Index Recap
Staging - August 2023 Mall Indec
Mid-Atlantic Grocery Deep Dive
Experiential Chains Heating Up This Summer
Petco Goes Big by Going Small
Ulta Beauty: Leading the Discretionary Pack
Discount and Dollar Chains Continue to Thrive
Summer of Sports: DICK’s Sporting Goods and Hibbett Sports
Off-Price: Succeeding Into Summer
The Anchor Recap: July 2023
Superstores Maintaining Pandemic Gains Amidst Economic Headwinds
2023: Home Improvement at the Halfway Point
July 2023 Office Index Recap
Placer.ai Mall Index: July 2023 Recap
widget test
The Taylor Swift Visit Lift
Southwestern Grocery Dive
July 2023 White Paper Recap: Halfway Point Review & Quarterly Index
Yum! Brands: Driving Dining Visits
Slurpees and Summer Movies Stimulate Consumer Foot Traffic
Cool Beans: Summer Coffee Update
Checking In on Back to School 2023
Crocs and New Balance Tip The Scales
Burger Bliss: Shake Shack and In-N-Out Stacking Visits
Chipotle & McDonald's Continue to Reign Supreme
Vibenomics and Placer.ai Partner to Enhance Retail Media In-Store Measurement
California Grocers Here We Come!
Marriott’s Different Audiences
Bonchon and Kura Sushi Thrive in the Fast-Casual Scene
A Shoe In: Footwear Climbs to the Top
Cheers! Raising a Glass to Beverage Retail
Placer.ai Office Index: June 2023 Recap
Placer.ai Mall Index June 2023 Recap – A Turn of the Tide and a Dive into Open-Air Lifestyle Centers
Local Kitchens: Redefining the Restaurant
Unlocking Urban Insights: The Value in Manhattan’s Employees
Ohio State Parks On The Rise
How is Inflation Impacting the High-Income Shoppers?
Five Fast-Growing Dining Chains
What To Expect From Prime Day and July Sales Events in 2023
The State Of Fashion: How Are Apparel Retailers Faring in 2023?
2023’s Latest Dining Success Story: GEN Korean BBQ House
The NBA Finals: A Location Intelligence Perspective
Moving the Market: The Impact of Domestic Migration on Housing Costs
Post-Pandemic Museum Update
The Darden-est Things
The Enduring Demand for Urban and Suburban Retail
Leveraging Data to Evaluate the Impact of Municipal Investments
Trader Joe's Success Amidst Food Inflation and Changing Consumer Behavior
Placer.ai Office Index: May 2023 Recap
Fitness at its Fittest: Staying Strong in 2023
Movie Theaters, Off-Price, and Home Improvement: May 2023 Recap
Placer.ai Mall Index - May 2023 Recap
What’s Working for Bath & Body Works?
Why Are Specialty Grocers Thriving in 2023?
The CAVA Craze: A Location Intelligence Perspective on the Mediterranean Marvel
How Will Primark’s US Expansion Impact Target?
All Eyes on Eyewear
Northwestern U.S. Grocery Dive
Return of the Lunch: Salad Chains Are Thriving
Retail Media Networks – Off the Beaten Track
Bet Your Bottom Dollar: Discount and Dollar Stores Drive Foot Traffic
Ulta & Lululemon: Discretionary Spending On The Up
The Score After Q1: Sporting Goods Chains
Who Uses NYC Airports: Biting Into The Big Apple’s Main Transport Hubs
Off Price: Strength in The Face of Retail Challenges
Visits Improve for Home Improvement
Walmart, Target & Wholesalers in Q1 2023 – The Return of Mission-Driven Shopping?
Department Store Roundup: Q1 2023
Placer.ai Office Index: April 2023 Recap
Placer.ai Mall Index, April 2023 – A Rebound on the Horizon?
How Will Bed Bath & Beyond’s Bankruptcy Impact the Retail Space?
Buffet Restaurants: Filling Up on Foot Traffic
Thrift Stores: Vintage Visits Drive New Age in Apparel
The Windy City: A Hub of Post-Pandemic Opportunity
Diving into Dining Traffic - Q1 2023
Bring On The Joe
A Dollar (or more) For Your Thoughts: Five Below and pOpshelf
Dining Out With The Cheesecake Factory
Retail Foot Traffic Recap – March 2023
Digging Into 2023: McDonald’s and Chipotle Update
Placer.ai Office Index: March 2023 Recap