The rise and fall of Bed Bath & Beyond, one of America's most iconic big box retailers

Once the golden child of big-box stores, Bed Bath & Beyond is now struggling to stay afloat.

The retailer will shutter 44 stores across eight states in the next year as it attempts to course-correct in the wake of disappointing sales and executive turmoil .

Bed Bath & Beyond was once a leading home goods retailer, appealing to shoppers across the nation with its strategy of abundance. The beloved store, which lined strip malls across the country, became known for its huge assortment of products spanning every color and style imaginable.

Over the years, it became a go-to destination for just about anything and everything for the home and true to its name beyond.

We took a closer a look at Bed Bath & Beyond's rise from a small linen store in New Jersey to a major national retail chain now on the brink of collapse.

Bed Bath & Beyond was founded in 1971 in New Jersey by Warren Eisenberg and Leonard Feinstein.

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Shoshy Ciment/Business Insider

The duo had formerly worked in management at Arlans , a local discount chain, and saw opportunity for growth in the bed and bath categories.

"We had witnessed the department store shakeout, and knew that specialty stores were going to be the next wave of retailing," Feinstein told the trade publication Chain Store Executive in 1993.

It was originally called Bed n Bath, to reflect its specialty linens and bath products. The company would later rebrand to Bed Bath & Beyond in 1987.

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During the course of the 1970s, Bed Bath & Beyond expanded to 17 locations, primarily in the greater New York area and California.

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Justin Sullivan/Getty Images

The 1980s also marked an era of increased competition for Bed Bath & Beyond, thanks to the rise of stores like Linens n Things.

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David McNew/Getty Images

In response, the company launched its first superstore concept, a 20,000-square-foot store that would become the model for the modern Bed Bath & Beyond store.

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Justin Sullivan/Getty Images

The company has been widely credited as being at the forefront of the superstore movement in America.

This new massive store featured a wide array of brands and products in nearly every color and style, setting it apart from department stores at the time that tended to stock a limited assortment of specialty collections.

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Business Insider/Jessica Tyler

Source: Funding Universe

This strategy is known by analysts as the "category killer," a method also employed by retailers like Toys R Us, Best Buy, and Costco.

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This method is intended to bring more shoppers into stores by selling a little bit of everything across all categories and consumer demographics.

Over the next few years, Bed Bath & Beyond opened more superstores in New Jersey, California, Virginia, Illinois, Maryland, and Florida.

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Michael Brochstein/SOPA Images/LightRocket via Getty Images

Source: Funding Universe

Its new store model which smartly grouped product categories and strategically placed impulse buys near the register was particularly conducive to strong sales. By 1991, sales reached $134 million.

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Shoshy Ciment/Business Insider

Source: Funding Universe

Bed Bath & Beyond filed for an IPO in June 1992.

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As the company continued to grow, it added popular categories like electric appliances.

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Shoshy Ciment/Business Insider

In 1999, it reached $1 billion in sales.

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Getty/Kevork Djansezian

Source: Funding Universe

By the start of the millennium, Bed Bath & Beyond had 311 stores across 43 states.

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Shoshy Ciment/Business Insider

Source: Funding Universe

In 2002, Bed Bath & Beyond acquired the health and beauty retailer Harmons, followed by the holiday chain Christmas Tree Shops in 2003.

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Over the next 10 years, the company continued to focus on acquisitions , including purchasing Buy Buy Baby in 2007.

Bed Bath & Beyond additionally purchased both Linen Holdings and Cost Plus World Market in 2012.

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By then, Bed Bath & Beyond began to hold a prominent place in popular culture, appearing in shows like "Broad City."

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Comedy Central

During this period, big-box stores like Bed Bath & Beyond began to show signs of struggle, as consumers turned to e-commerce and other cross-category competitors like Walmart and Target.

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Shoshy Ciment/Business Insider

Source: Racked

Suddenly, stores like Linens n Things were going out of business.

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Getty

In May 2019, CEO Steven Temares was ousted by a group of activist investors who called for his resignation in a brutal 168-slide presentation. Several board members also stepped down at the behest of investors.

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Business Insider/Jessica Tyler

In the presentation, the investors called company leaders at fault for failing to adapt to the modern retail landscape and causing sales to tank.

In November 2019, former Target CMO Mark Tritton took over for interim CEO Mary Winston as the companys new leader.

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Gary Gershoff/Getty Images

Source: Business Insider

While some experts say the appointment of Tritton brings promise, its not expected to be an easy turnaround. In its most recent earnings report, Bed Bath & Beyond reported that comparable sales decreased by 8.3%.

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Shoshy Ciment/Business Insider

Source: Forbes

To offset its poor performance, the company will shutter 44 stores across eight states in the next year.

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Mark Lennihan/AP Images

Source: Business Insider

Whether the closures will serve as a reset for the company remains to be seen, but regardless, Bed Bath & Beyond has a long road ahead.

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Shoshy Ciment/Business Insider

The rise and fall of Bed Bath & Beyond, one of America's most iconic big box retailers

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Bed Bath & Beyond was founded in 1971 in New Jersey by Warren Eisenberg and Leonard Feinstein.

It was originally called Bed n Bath, to reflect its specialty linens and bath products. The company would later rebrand to Bed Bath & Beyond in 1987.

During the course of the 1970s, Bed Bath & Beyond expanded to 17 locations, primarily in the greater New York area and California.

The 1980s also marked an era of increased competition for Bed Bath & Beyond, thanks to the rise of stores like Linens n Things.

In response, the company launched its first superstore concept, a 20,000-square-foot store that would become the model for the modern Bed Bath & Beyond store.

This new massive store featured a wide array of brands and products in nearly every color and style, setting it apart from department stores at the time that tended to stock a limited assortment of specialty collections.

This strategy is known by analysts as the "category killer," a method also employed by retailers like Toys R Us, Best Buy, and Costco.

Over the next few years, Bed Bath & Beyond opened more superstores in New Jersey, California, Virginia, Illinois, Maryland, and Florida.

Its new store model which smartly grouped product categories and strategically placed impulse buys near the register was particularly conducive to strong sales. By 1991, sales reached $134 million.

Bed Bath & Beyond filed for an IPO in June 1992.

As the company continued to grow, it added popular categories like electric appliances.

In 1999, it reached $1 billion in sales.

By the start of the millennium, Bed Bath & Beyond had 311 stores across 43 states.

In 2002, Bed Bath & Beyond acquired the health and beauty retailer Harmons, followed by the holiday chain Christmas Tree Shops in 2003.

Bed Bath & Beyond additionally purchased both Linen Holdings and Cost Plus World Market in 2012.

By then, Bed Bath & Beyond began to hold a prominent place in popular culture, appearing in shows like "Broad City."

During this period, big-box stores like Bed Bath & Beyond began to show signs of struggle, as consumers turned to e-commerce and other cross-category competitors like Walmart and Target.

Suddenly, stores like Linens n Things were going out of business.

In May 2019, CEO Steven Temares was ousted by a group of activist investors who called for his resignation in a brutal 168-slide presentation. Several board members also stepped down at the behest of investors.

In November 2019, former Target CMO Mark Tritton took over for interim CEO Mary Winston as the companys new leader.

While some experts say the appointment of Tritton brings promise, its not expected to be an easy turnaround. In its most recent earnings report, Bed Bath & Beyond reported that comparable sales decreased by 8.3%.

To offset its poor performance, the company will shutter 44 stores across eight states in the next year.

Whether the closures will serve as a reset for the company remains to be seen, but regardless, Bed Bath & Beyond has a long road ahead.

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The rise and fall of Bed Bath & Beyond, one of America's most iconic big box retailers

Recommended articles

Bed Bath & Beyond was founded in 1971 in New Jersey by Warren Eisenberg and Leonard Feinstein.

It was originally called Bed n Bath, to reflect its specialty linens and bath products. The company would later rebrand to Bed Bath & Beyond in 1987.

During the course of the 1970s, Bed Bath & Beyond expanded to 17 locations, primarily in the greater New York area and California.

The 1980s also marked an era of increased competition for Bed Bath & Beyond, thanks to the rise of stores like Linens n Things.

In response, the company launched its first superstore concept, a 20,000-square-foot store that would become the model for the modern Bed Bath & Beyond store.

This new massive store featured a wide array of brands and products in nearly every color and style, setting it apart from department stores at the time that tended to stock a limited assortment of specialty collections.

This strategy is known by analysts as the "category killer," a method also employed by retailers like Toys R Us, Best Buy, and Costco.

Over the next few years, Bed Bath & Beyond opened more superstores in New Jersey, California, Virginia, Illinois, Maryland, and Florida.

Its new store model which smartly grouped product categories and strategically placed impulse buys near the register was particularly conducive to strong sales. By 1991, sales reached $134 million.

Bed Bath & Beyond filed for an IPO in June 1992.

As the company continued to grow, it added popular categories like electric appliances.

In 1999, it reached $1 billion in sales.

By the start of the millennium, Bed Bath & Beyond had 311 stores across 43 states.

In 2002, Bed Bath & Beyond acquired the health and beauty retailer Harmons, followed by the holiday chain Christmas Tree Shops in 2003.

Bed Bath & Beyond additionally purchased both Linen Holdings and Cost Plus World Market in 2012.

By then, Bed Bath & Beyond began to hold a prominent place in popular culture, appearing in shows like "Broad City."

During this period, big-box stores like Bed Bath & Beyond began to show signs of struggle, as consumers turned to e-commerce and other cross-category competitors like Walmart and Target.

Suddenly, stores like Linens n Things were going out of business.

In May 2019, CEO Steven Temares was ousted by a group of activist investors who called for his resignation in a brutal 168-slide presentation. Several board members also stepped down at the behest of investors.

In November 2019, former Target CMO Mark Tritton took over for interim CEO Mary Winston as the companys new leader.

While some experts say the appointment of Tritton brings promise, its not expected to be an easy turnaround. In its most recent earnings report, Bed Bath & Beyond reported that comparable sales decreased by 8.3%.

To offset its poor performance, the company will shutter 44 stores across eight states in the next year.

Whether the closures will serve as a reset for the company remains to be seen, but regardless, Bed Bath & Beyond has a long road ahead.

Sign up for Business Insiders retail newsletter, The Drive-Thru, to get more stories like this in your inbox .

FOLLOW BUSINESS INSIDER AFRICA

Recommended articles

Major African economies expecting inflation ease into next year, except Nigeria

10 African countries with the lowest price changes in household commodities

Dangote refinery outranks Europe's 10 largest refining facilities

Africa may just have the lowest level of cyber threats compared to other regions

A look into Kenya’s Shs1.1 billion climate funding from the UK

FCMB: A corporate journey of resilience, evolution, and growth

Congo is spending 22% of its scarce revenue on security - Minister

Another African country is set to get a Russian embassy

Medic West Africa 2024: A resounding success in fostering collaboration and innovation for a brighter healthcare future

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