The company announced several changes to its leadership Wednesday, including replacing Tritton. In the interim, Bed Bath and Beyond has tapped Sue Grove, an independent director on the company's board, as its CEO until it fines someone permanent for the position.
Grove said that we must deliver better results. The success of the company will be dependent on top-tier execution, careful management of costs, greater supply chain reliability, prudent capital spending, a stronger balance sheet, and robust digital capabilities. He was previously in charge of expanding Target's private label brands, which he tried to replicate at Bed Bath and Beyond. The items that haven't caught on with customers the same way they did at competitors - nor did the company's redesigned stores. He was previously in charge of expanding Target's private label brands, which he tried to replicate at Bed Bath and Beyond. The items haven't caught on with customers the same way they did at competitors - nor did the company's redesigned stores.
Tritton's efforts did not mask the company's deep-seated problems. On Wednesday, the chain reported lower-than-expected earnings for the last quarter, and the brand's sales declined 27% from the same period a year ago.
The stock fell by 20% in early trading, as a result of that. It's down about 65% for the year. Neil Saunders, managing director of GlobalData, said that Mark Tritton is out after three years at Bed Bath and Beyond Tritton's departure was unavoidable and that the earnings report does not inspire confidence in the company's trajectory. This was a cosmetic re-envention copied from Target, with very little substance behind it, Saunders said. It is no wonder that it has fallen apart quickly. He said that the company has been run into the ground and that a change of management is the only way to restore credibility with investors. On Tuesday, a new report from Bank of America painted a bleak picture of the retailer, saying that the company has cut air conditioning to quickly lower costs to make up for a slump in sales. Bed Bath and Beyond told CNN Business that any changes in store temperature guidelines did not come from corporate. A representative said that there had been no corporate policy changes in regard to utilities usage and no Bed Bath Beyond stores were directed to adjust their air conditioning and there were no corporate policy changes in regard to this report. Analysts at the Bank of America 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 been scaled back and replaced. The analysts believe that Bed Bath and Beyond's management will announce more store closures and halt openings of its Buy Buy Baby stores. Two key financial executives resigned in recent months, chief accounting officer John Barresi resigned in May, and Heather Plutino, senior vice president of financial planning and analysis and commercial finance also left the company.