Bed Bath & Beyond To Roll Back Coupons To Save Money
The big-box retailer, traditionally known for its mailed coupons that offered 15 or 20 percent discounts on bedding and other home accessories, will be stepping away from that touchstone. In a meeting with investors, Chief Merchandising Officer Joe Hartsig said he wants to see less of the “overreliance on the coupon.”
Bed Bath & Beyond said it had studied 405 million shoppers’ baskets alongside 285,000 store items and found that many of their promotions weren’t really needed — around 40 percent of them hadn’t been effective or useful in the long run, CNBC writes.
The pandemic has given Bed Bath & Beyond a boost of around 1.4 million new customers, many looking to stock up on cleaning supplies or spend their time during lockdown improving their homes. Many of them are younger and statistically less likely to use coupons, per the report. But one analyst cautioned that the store shouldn’t go so far as to alienate the many customers who still like the coupons.
The effort is part of the retailer’s restructuring plan. In July, it was reported that Bed Bath & Beyond would close 200 stores over the next two years due to the economic effects of the pandemic. Sales had plummeted 50 percent in the early part of the year, falling from $2.57 billion to $1.31 billion. However, online sales were up 82 percent in the midst of the U.S. lockdown in the spring. Closing the stores will help the company save $250 million to $350 million annually.