Bed Bath And Beyond Coupons Are Not Meeting The Expectations
Bed Bath And Beyond coupons are not proving to be profitable for the company but convenient for the customers only; the company is investing in e-commerce.
Bed Bad & Beyond offers numerous facilities to its customers, out of which the one that is getting too much ‘unwanted’ fame is the company’s 20% off coupons. These coupons are delivered in mailboxes at the customer’s doorstep.
This tiny card is starting to become a problem for Bed Bath & Beyond, as it is ruining the profit that the business attains due to the excessive discounts it offers and making the customers highly dependent on such discounts even more. The company’s profits have fallen down by 10% to $202 million, while its revenue has grown by 1.7% to $3 billion.
The senior on the board blame this on the coupons, and since the customers are so used to the discount, they have stopped considering it as an extra facility or an offer but a right when they are shopping. This is not a good sign for the organization when all shoppers will expect a discount every time they shop. The second this stops all the cost-conscious shoppers will look for other cheaper outlets and the company will end up losing many of its customers eventually.
The wholesale centrals stock has fallen by 25% in 2015, and according to many analysts, the organization is struggling to adapt to the humungous brick-and-mortar for the e-commerce business. The retail chain is facing problems with running the online shopping platform it has created because of the shipping costs sometimes due to the weight of the shipped products.
Store in the Towne Center in Watertown is not having any kind of rapid growth in the online business. It is making efforts to boost the online business by expanding the variety of products, such as furniture and mattresses. It is also constructing more distribution centers so that it can be more convenient for the company to delivers goods to customers. It is making huge efforts in term of digital advertising, such as social media networks and email.
The online shopping convenience has been trending now more than ever and all the markets are focused on digital transactions. The company is trying to do the same, which has not shown much progress, but it is definitely investing. It has even launched a boutique online in order to attract fashion addicts. This has proved to be successful so far, evidence is the 25% growth in sales online this quarter; even though the growth is slow, it is happening. There was a 1% decline in the brick and mortar sales.
The retail chain is working on its business plan and strategy overall. It is planning to grow the variety of private-label brands in the hope of customer loyalty and has already added the specialty department in about 200 of its stores, containing health, food, beauty, beverages products that help grow merchandise and attract different kinds of customers. It has not done much for the business so far.
BBBY stock closed at $59.21 on October 23.