Importance of the Stores Expansion Plans in Michigan and the Midwest

Bed Bath & Beyond Inc. (BBBY) is a retailer of home furnishings and more with 1,412 stores across the United States. Bed Bath & Beyond operates four divisions: the Home Store, which is focused on major appliances, furniture and associated products; Linens; Pets; and Decor. BBBY, a Fortune 1000 Company, is expected to open 25 stores in 2015. BBBY, based in New York City, has annual sales of $12 billion. In the past five years, BBBY has averaged annual sales growth of 3.5%.
In the most recent quarter ended 12/29/2014, bed bath and beyond saw a good performance. Both top-line and bottom-line were in line with analyst expectations. Management lowered the average sales per store for 2014 by $1 Million to $14 Million from an earlier guidance of $15 Million. The shortfall was due to poor sales at a handful of stores and postponement of store openings for 2015.
In December 2014, BBBY acquired BuySeasons Inc., which is expected to add $25 million in annual sales. The acquisition will increase BBBY’s presence in the Midwest and could provide an opportunity for expansion into new markets.

bed bath and beyond saginaw mi
bed bath and beyond saginaw mi

Expansion of Bed Bath & Beyond Stores in Michigan and The Midwest

The Bed Bath & Beyond Inc., the largest retailer of home furnishings and more in the United States, announced plans to open 25 stores in 2015. David H. Poppe, BBBY’s president and chief executive officer (CEO), described his outlook for Michigan and the Midwest as very positive. He said: “Our retail growth plan includes opening 50 new Bed Bath & Beyond stores this year, building on the 55 stores we opened in 2014. We enter 2015 with more than 1,412 stores in 49 states, and the Midwest is our largest region for growth potential.” The Midwest region is the company’s fastest growing region with 13 new stores in 2014. The company also opened 23 stores in 2013. During Q1 of 2015 BBBY opened new stores in Michigan, Illinois, Kansas, Missouri and Wisconsin.
Bed Bath & Beyond plans to open 25 more stores in Michigan and The Midwest by the end of 2015. BBBY also plans to open new stores in Georgia and North Carolina. The company also plans to add jobs to its current roster: 41,000 team members nationwide. New jobs include store associates, customer service representatives and corporate positions.
BBBY also wants to continue having 100% of its stores open during major holidays, including Thanksgiving Day and Christmas Eve. Additionally, BBBY intends to continue its tradition of offering 20% off a customer’s purchases on Cyber Monday.

bed bath and beyond saginaw mi
bed bath and beyond saginaw mi

Decisions on Expansion of B&B Stores

Bed Bath & Beyond has the option to construct a majority of the new stores at its own expense, or it can choose to lease space. The company makes decisions on constructing its own stores or leasing space based on a number of factors, including a forecast of expenses and income; the cost of operating its stores at the new location and the flexibility to change rents and menu items; sales of products being offered, with preference given to established locations; and the sale price of comparable buildings in the area.
In the past, Bed Bath & Beyond has successfully constructed stores of the new format in four markets, including two that were opened in partnership with Sears. [It is unclear if any of the 4 partnerships were a joint venture or managed by Bed Bath & Beyond. Nor is it clear if Sears invested in these stores.]
Bed Bath & Beyond is located at 9361 W. Grand River Avenue near Seven Mile and Schaefer Road in Farmington Hills. The company’s new store format is called “Bed Bath & Beyond Homeplus.” The store offers more flexibility to accommodate customers’ preferences and needs.

bed bath and beyond saginaw mi
bed bath and beyond saginaw mi

How Retail Apas can Help with an Expanded Distribution Strategy

Retailers use Dimensional Weight Per Piece and Dimensional Weight Per Container shipping as a more flexible approach for pricing, to provide more accurate information about the size of packages to customers, and to assist shippers in meeting the requirements of export regulations. ” This approach is being adopted by an increasing number of major retailers, although it still represents only a small percentage of overall shipping volume,” according to the latest LCP Freight Trends Report.
LCP’s Dimensional Weight Per Piece system works by calculating the actual size of packages, factoring any special packing conditions (shrink-wrap, overpacks) and assigning a dimensional weight charge to each package based on its actual size. The price for this service is typically included in the freight quote generated by a freight management system.
Although Dimensional Weight Per Piece is still in its early days, it offers advantages that can help retailers expand their distribution networks:
1. Minimize Public Relations Risk

bed bath and beyond saginaw mi
bed bath and beyond saginaw mi

How Do You Increase Sales If You Don’t Have Customers or Products? What Can A Productivity Checklist Do For You?

A basic production checklist can help you evaluate each step in the process of acquiring and delivering inventory. To create your checklist, start at the end of the process, meaning where the customer picks up or receives their orders, and work toward the beginning, where items are ordered. Once you have a complete list of all activities in your supply chain inventory lifecycle, including order entry, gathering data for orders, packing, shipping and receiving goods and inventory reordering, you can compare your existing process to your list from end to end and identify any activities that could be streamlined or improved. If you discover issues in your process that aren’t addressed by the checklist you created, you can examine each in detail to determine how they should be addressed.
Once you have completed this task, you can use your knowledge to create an efficient process that will improve the productivity level of your business. Start by identifying each activity in your inventory cycle and the time it takes to complete the activity. Before you begin, set up a system that will help organize and record all preparation materials, time spent and costs associated with each activity. You should also document knowledge-related activities such as employee meetings, education and training sessions. Consult with experts within the industry, including human resources and your legal department, to identify ways that you can streamline your processes and reduce the time taken to conduct inventory activities.

bed bath and beyond saginaw mi
bed bath and beyond saginaw mi