Bed Bath & Beyond: Retailer To Close 40 Stores, Open 15

Bed Bath & Beyond (BBBY) has announced that it will close approximately 40 stores, a number that may grow if the retailer cannot negotiate more favorable lease terms with its landlords. At the same time, the company announced that it would also open 15 new stores in fiscal 2019.

While most of the store closings will affect the Bed Bath & Beyond brand, the company also operates Buy Buy Baby, Harmon Face Values, World Market, and Christmas Tree Shops locations.

The closures are a result of the company’s mixed fourth quarter results, which it announced in a call to analysts late Wednesday.

This is not the first time that Bed Bath & Beyond announced store closures as the company shut the doors of 21 stores in the fourth quarter. It opened three new stores during the same time period.

As part of the earnings call, Bed Bath & Beyond referred to new efforts it is making with its “next generation lab stores.” The new store concept did generate higher sales for the company, according to the retailer.

Robyn D'Elia, chief financial officer and treasurer, said during Wednesday’s call, that Bed Bath & Beyond “initiated 21 next generation lab stores, in which we are testing new and different assortments and visual merchandising to reimagine the in-store experience."

Bed Bath & Beyond operates 1,500 stores through its full brand line up.

Shares of Bed Bath & Beyond stock were up 1.21 percent as of 10:14 a.m. on Friday.