Analysts accuse Bed Bath & Beyond of scaling back AC in stores to save money as sales plummet

By Nicole Goodkind | 28 June 2022

CNN BUSINESS — Retailers typically want their sales numbers to be red hot, not their customers. But Bed Bath & Beyond (BBBY) is reportedly dealing with cooled momentum and heated customers at its stores.

A new report from Bank of America claims that the company has cut air conditioning in an effort to quickly lower expenses to make up for a slump in sales.

Bed Bath & Beyond told CNN that any changes in store temperature guidelines did not come from corporate. “We’ve been contacted about this report, and to be clear, no Bed Bath & Beyond stores were directed to adjust their air conditioning and there have been no corporate policy changes in regard to utilities usage,” said a representative.

Still, analysts at Bank of America who have conducted store visits report mounting concerns, including labor hours that have been meaningfully cut, scaled back utilities, reduced store operating hours and canceled remodeling projects. Rewards programs have also been scaled back and replaced. The analysts expect Bed Bath & Beyond’s management will soon announce more store closures and halt openings of its Buy Buy Baby stores. […]

2 Comments on Analysts accuse Bed Bath & Beyond of scaling back AC in stores to save money as sales plummet

  1. Still, analysts at Bank of America who have conducted store visits …

    So largely discretionary spending is falling? — and ‘analysts’ need to visit stores to find out why?

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