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Essay / Review of Bed Bath & Beyond (bbby)
Bed Bath & Beyond (BBBY) is a store that we are all familiar with today. Bed Bath & Beyond started with a bang in 1971 and has been growing ever since. Recently, BBBY has faced serious competition, especially on the e-commerce platform. I have researched the company extensively to be able to give an investment recommendation. I will start by researching the company, its history, its risks and its future plans. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the original essayBed Bath & Beyond is a large home goods retailer. The company has many subsidiaries, including Christmas Tree Shops, Harmon, Harmon Face Values, buybuy Baby. Bed Bath & Beyond sells household products such as bed linens, bath items… and home furnishings such as household basics, tableware, kitchen items…. Bed Bath & Beyond sells its products in-store and on online/mobile devices. They have 1,530 stores located in the United States, District of Columbia, Puerto Rico, and Canada, and also have a website (Reuters.com). The headquarters is located in Union, New Jersey. Steven H. Temares has been CEO of BBBY for two years and has been with the company for 13 years (Forbes.com). Currently, BBBY has 65,000 employees. Bed Bath & Beyond opened its doors on October 5, 1971. The company was started by Warren Eisenberg and Leonard Feinstein in New York and New Jersey. The timing was right for the industry and the stores continued to expand, eventually going public in 1992. The company continued to expand, eventually incorporating an online store and buying out some of its subsidiaries. Bed Bath & Beyond's primary industry is the retail sector, particularly in furniture and housewares stores. Some competitors of Bed Bath & Beyond in the home furnishings departments are Appliance Recycling Centers of America, Inc., At Home Group Inc., The Container Store and Williams-Sonoma Inc. BBBY's profits for the first quarter of 2018 were less than those in the first quarter of 2018. 2017. This caused their stock prices to drop dramatically as people became nervous about their future earnings potential. The decline in EPS has many causes. First, BBBY competes with Amazon and other major competitors. Next, BBBY is also expanding its stores and online store. BBBY's deep discounts and promotions also contributed to this quarter's low EPS. Finally, BBBY offered a new membership called "Beyond+" in 2017. For $29 per year, members can enjoy free shipping on all purchases and 20% off every purchase. This increased costs for BBBY and their margins fell further. BBBY has tried to keep up with the ever-changing retail industry, but its plans are failing. BBBY faces certain risks going forward. First, they face economic risks that they cannot control, such as tax rates, inflation, deflation, unemployment trends, interest rates, etc. Second, they face risks from retail competition and technological advances (sec.gov). This includes unanticipated practices and pricing, such as lower thresholds for free shipping. Third, BBBY runs the risk of failing to anticipate and adapt to changing customer preferences (sec.gov). If BBBY cannot anticipate and adapt to these changes, consumers will not be interested in the products.