Bed Bath & Beyond: Is Online the Solution? (Simplified Chinese version)
(7 pages of text)
Case (Pub Mat)
Bed Bath & Beyond Inc. (BBBY) was founded in 1971 and focused on retailing items for customers’ “home and heart” life events, such as weddings, births, and moves. By the end of 2017, the company had over 1,530 stores distributed in the United States, Puerto Rico, and Canada, but its third-quarter earnings results revealed a 50 per cent year-over-year decline in net profits and a 45 per cent decline in stock price compared to the beginning of the year. BBBY was facing a steady decrease in physical store sales even as digital sales showed growth. BBBY was trying to catch up to competitors with digital initiatives, gain and retain customers through discount and membership programs, and keep a close control on costs, but the question remained: How could BBBY stay relevant and competitive in the long term?
This case can be used in undergraduate-, graduate-, and executive-level courses on marketing, marketing strategy, and e-commerce. After working through the teaching note and assignment questions, students should be able to do the following:
- Describe trends in the retail sector, such as those caused by the digital age.
- Analyze a company’s competitive advantage using the concept of economic moat.
- Suggest measures to reposition a retail company in a changing market environment.
United States, Large, 2017-2018
$5.30 CAD / $5.00 USD Printed Copy
$4.50 CAD / $4.25 USD Permissions
$4.50 CAD / $4.25 USD Digital Download