Bed Bath & Beyond Rallies As CEO Shares Turnaround Plans: 'We Are Making Substantial Moves'

Shares of struggling retailer Bed Bath & Beyond Inc. BBBY traded higher Wednesday morning after CEO Mark Tritton unveiled a turnaround plan.

Simplifying Bed Bath & Beyond

Tritton, who is barely 100 days into the job, told The Wall Street Journal in an interview that decluttering stores is a top priority to rejuvenate sales.

Some of the initiatives to reduce clutter include lowering how many can openers Bed Bath & Beyond sells from more than a dozen to around three. Doing so eliminates "purchase paralysis," as consumers don't like overcrowded shelves, he said. 

Tritton said he plans on lowering inventory by more than 10% in 2020 on top of a $400 million investment to improve store layouts, including wider aisles and eliminating piles of merchandise stacked to the ceiling. Other initiatives include technology upgrades and bolstering the supply chain, the CEO said.

One thing Tritton won't eliminate is coupons, although he said he plans on simplifying promotions and making use of signs to educate customers about promotions.

Tritton's Storewide Plans For Bed Bath & Beyond

Bed Bath & Beyond under prior leadership teams also attempted to improve sales through technology improvements and store remodels, according to WSJ.

What makes Tritton's plan different is that, instead of focusing on individual objectives, his vision consists of improving the entire store experience.

Tritton's vision for remodeled stores is slated to go live at 25 stores this year. Other near-term goals include Wi-Fi and buy online and pick up in-store options across all stores by the end of the year. The company will also spend $600 million on share repurchases and debt reduction this year and evaluate asset sales of noncore businesses, according to WSJ. 

"We are making substantial moves," Tritton told WSJ. "But we are early in our turnaround. This is phase one."

The stock was trading 4.6% higher at $12.32 at the time of publication Wednesday.

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Public domain photo via Wikimedia.