Bed Bath & Beyond files for bankruptcy

That are only good on the shitty stuff.

 

I’m surprised it took this long

 

One thing about them I noticed whenever my wife would need to "stop in for a quick minute" ( :/ )... is they are badly merchandised visually. Way too much merchandise crammed into every square inch. Probably a sign of over purchasing.

I always thought the stores seemed way too slow to support that much inventory and that large of a RE footprint.

 

When Linens 'n Things had bankruptcy closeouts about 20 years ago I noticed the price of items had been jacked up with further discouts taken from the inflated prices. A clerk working in the store at the time told me the closeout sales in every store that was still open were handled by a company engaged specifically to manage store closings. The closer's practice was to come in and raise prices on every item of merchandise, then make the going out of business discounts from that inflated price point.

The store had carried a couple of things I had my eye on but when I found the closing discounted prices were nearly the same, or even higher in some cases than the original prices, I passed. Was going to wait 'til the items went down some more but they were snapped up before I got back.

Until 15 or 20 years ago the coupons could be used on anything and everything BBBY sold. Then the exclusions started on a few higher end items and increased in numbers over the years. I stopped shopping at BBBY10 years ago when I discovered I could find the same things at lower cost in other stores.

 

This. 100%. Stores were big and crammed almost every square inch, almost floor to ceiling, with stuff. And BB&B isn't like a Target or Walmart, where you repeat shop with regularity, and stop in as needed. BB&B is more of a niche need store.

They should have followed the Best Buy model. Make the store more about the experience, lessened the inventory on hand, and relied more on shipping stuff next day. It's not like most stuff you would buy at BB&B are items you need right now.

 

Generally a liquidator is hired and may even technically take over ownership, but they dont generally raise prices. (Exceptions exist, yes) They make their money off selling the inventory off and then selling fixtures etc as quickly as possible and then reinvesting in the next I'll fated company.

 

I first caught on to this years ago when an Ashley Furniture went out of business near me. I had just happened to be in the store about two weeks before the store closing signs were displayed along with claims of massive discounts. So I eagerly went in and sought out the items I had my eye on. Every single one was substantially more expensive than before the liquidation sale. And not just a little but at least 50% more.

Since then I’ve stopped at a few and been able to do some online research and they’re never a good bargain until you get down towards the end of sales but at that time it’s usually picked over unwanted items.

 

Flea market feel with department store prices. Who didn’t like that? Ha.

 

Just a note… I have never been to a mattress store and can see two from this coffee shop this AM… never seen one go out of business. Never seen anyone go in.

 

Listened to a podcast on this "phenomenon" at one point. Long story short, very low overhead and huge profit margins on a big ticket item. They don't even need to sell one a day to turn a profit.

 

There’s a huge difference between a liquidator taking over the inventory management of a BK retailer for purpose of winding down its business, and a retailer closing only one of its own non-profitable stores while still functioning as an ongoing concern with a profit motive for the rest.

 

400% markup in a no-frills space.

 

And it generally ships from the manufacturer, so no inventory. A store-front, an employee, utilities, and rent.

 

Today is the last day to use them.

 

The thing is, I actually prefer a brick-and-mortar store because I can pick up the merchandise and look it over. You can't do that buying online. And Amazon is catching on to people buying 30 outfits and trying them on at home and sending stuff back. It's also why I never buy shoes online, that is one apparel that will never not be a brick and mortar.

 

Wife and I have noticed this and discussed at length.
We have decided mattress stores are mafia fronts.

 

It's because with their margins they only have to sell one overpriced mattress per decade to stay in business.

 

That is the one conspiracy id actually believe.

 

Seems like the only part of the bed that bed bath and beyond missed out on was the profitable part. Yikes