In a calendar already awash in holiday sales news,
Bed Bath & Beyond
announced Tuesday that it would offer same-day delivery. It is another sign that the troubled retailer is looking to up its omnichannel game as part of its turnaround effort.
Bed Bath & Beyond (ticker: BBBY) said its flagship Bed Bath locations and Buybuy Baby stores will offer same-day delivery for a flat-rate fee of $4.99 for orders of more than $39. The company is partnering with Shipt and Instacart, and its products will also be available on these services’ websites.
The move follows the retailer’s offering of contactless curbside and in-store pickup, a result of the Covid-19 pandemic. Bed Bath said digital orders were up 82% in its most recent quarter, a bright spot in an otherwise choppy report.
The market appeared less than impressed, sending Bed Bath shares down 2.8% to $14.46 Tuesday morning as the
Dow Jones Industrial Average
traded near the flat line. However, it is an encouraging move from a new management team looking to break with a history of missed opportunities.
Robert W. Baird analyst Peter Benedict, who upgraded Bed Bath to Outperform last week, expects this to be just the first of multiple changes, as the company plans to roll out private brands next year and remodel stores. “While driving store traffic/discovery will require investment, Bed Bath customers seem poised to experience elevated newness in 2021 (and beyond).”
Change is needed, given years of mismanagement that dogged Bed Bath, and caused it to fall behind at a critical time in retail. While challenges remain, the pandemic has provided at least one tailwind, in that people have been more willing to spend money on their homes. A new management team that is willing to act quickly and meet consumers new shopping habits will have a better chance of executing a turnaround. Same-day delivery is a step in that direction.
Write to Teresa Rivas at [email protected]