Business Analysis of Bed Bath & Beyond

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Bed Bath & Beyond

BED BATH & BEYOND

Business Overview

Bed Bath & Beyond Inc., together with its subsidiaries, operates a chain of retail stores. It sells a range of domestics merchandise, including bed linens and related items, bath items, and kitchen textiles; and home furnishings, such as kitchen and tabletop items, fine tabletop, basic housewares, general home furnishings, consumables, and juvenile products. It also provides various textile products, amenities, and other goods to institutional customers in the hospitality, cruise line, healthcare, and other industries. As of February 25, 2017, the company had a total of 1,546 stores, includes 1,023 Bed Bath & Beyond stores in 50 states, the District of Columbia, Puerto Rico, and Canada; 276 stores under the names of World Market, Cost Plus World Market, or Cost Plus; 113 buybuy BABY stores in 35 states and Canada; 80 stores under the CTS name; and 54 stores under the Harmon name. It also offers products through various Websites and applications, such as bedbathandbeyond.com, bedbathandbeyond.ca, harmondiscount.com, christmastreeshops.com, buybuybaby.com, buybuybaby.ca, harborlinen.com, t-ygroup.com, and worldmarket.com. In addition, the Company operates Of a Kind, an e-commerce Website that features specially commissioned limited edition items from emerging fashion and home designers; One Kings Lane, an online authority in home decor and design that offers a collection of selected home goods, and designer and vintage items; PersonalizationMall.com, an online retailer of personalized products; Chef Central, an online retailer of kitchenware, cookware, and homeware items catering to cooking and baking enthusiasts; and Decorist, an online interior design platform that provides personalized home design services. Bed Bath & Beyond Inc. was founded in 1971 and is based in Union, New Jersey.

Bed Bath & Beyond

Bed Bath & Beyond


R&P Rank: 234
Sector: Retail
Industry:Home Improvement Retail
H.Q Location:New Jersey
Website: www.bedbathandbeyond.com
Company Address:
650 LIBERTY AVENUE, UNION NJ 07083
Ph:201-379-1520

Business Analysis of Bed Bath & Beyond

The Retail Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Bed Bath & Beyond compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Bed Bath & Beyond to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Bed Bath & Beyond with an interactive chart.

  1. Revenue Growth: Bed Bath & Beyond reported a revenue growth of 1.9% year-on-year during 2016. Home Improvement Retail Industry grew at 5.7% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Bed Bath & Beyond spent 61.8% of its total revenues on COGS. Home Improvement Retail industry average (COGS share of revenue) in the same period was 64.8%
  3. R&D share of Revenues: Bed Bath & Beyond R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, Bed Bath & Beyond spent 26.5% of its total revenues on Sales, Marketing, and General Administration (SG&A). Home Improvement Retail industry average SG&A spending in the same period was 22.3%
  5. Inventory share of Revenues: As a percentage of revenue, Bed Bath & Beyond spent 23.5% of its total revenues on Inventories. Home Improvement Retail industry average Inventory spending in the same period was 15.6%
  6. Accounts Payable share of Revenues: As a percentage of revenue, Bed Bath & Beyond invested 9.1% of its total revenues on Accounts Payable (A/P) Home Improvement Retail industry average Accounts Payable investment in the same period was 8.2%
  7. Accounts Receivable share of Revenues: Bed Bath & Beyond Accounts Receivable share of Revenues details are not available because either company does not share the data or we do not have it
  8. PP&E share of Revenues: As a percentage of revenue, Bed Bath & Beyond invested 14.3% of its total revenues on Property, Plants, and Equipments (PP&E). Home Improvement Retail industry average PPE investment in the same period was 26.6%
  9. Intangibles share of Revenues: As a percentage of revenue, Bed Bath & Beyond invested 4.0% of its total revenues on Intangibles. Home Improvement Retail industry average Intangibles investment in the same period was 2.0%
  10. Net Margins: Bed Bath & Beyond Net Margins in the year 2016 were 7.0%. Home Improvement Retail industry average Net Margins in the same period were 6.3%

Sector and Industry Association of Bed Bath & Beyond

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.

Bed Bath & Beyond is associated with Retail Sector and Home Improvement Retail Industry.

Retail sector is comprised of the following industries: Broadline Retail; Grocery Retail; Specialty Retail; Apparel Retail; Home Improvement Retail; Specialized Consumer Services. The definitions for each of the industries is as follows:

  • Broadline Retail industry includes retail outlets and wholesalers offering a wide variety of products including both hard goods and soft goods.
  • Grocery Retail industry includes retail stores that primarily offer non-perishable food that is packaged in cans, bottles and boxes, with some also having fresh produce, butchers, delis, and bakeries
  • Specialty Retail industry includes retailers and wholesalers concentrating on a Single Class of Goods, such as electronics, books, automotive parts or closeouts. It also includes automobile dealerships, video rental stores, dollar stores, duty-free shops and automotive fuel stations not owned by oil companies.
  • Apparel Retail industry consists of retailers and wholesalers specializing mainly in Clothing, Shoes, Jewelry, Sunglasses and Other accessories.
  • Home Improvement Retail industry includes retailers and wholesalers concentrating on the sale of home improvement products, including Garden Equipment, Carpets, Wallpaper, Paint, Home Furniture, Blinds and Curtains, and Building materials.
  • Specialized Consumer Services industry includes providers of consumer services such as Auction Houses, Day-care Centers, Dry Cleaners, Schools, Consumer Rental Companies, Veterinary Clinics, Hair Salons and providers of Funeral, Lawn-maintenance, Consumer-storage, Heating and Cooling installation and Plumbing services.

Industry Ranking of Bed Bath & Beyond

With $12.1 billion revenues, Bed Bath & Beyond ranked number 3 of all the companies in the US Home Improvement Retail industry. There were a total of 14 public companies in the US Home Improvement Retail industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Home Improvement Retail industry by revenues during 2016 were:

  1. Home Depot ($88.5 billion)
  2. Lowe's ($59.1 billion)
  3. Bed Bath & Beyond ($12.1 billion)
  4. Williams-Sonoma ($5 billion)
  5. Restoration Hardware ($2.1 billion)
  6. Pier 1 Imports ($1.9 billion)
  7. La-Z-Boy ($1.5 billion)
  8. Tuesday Morning ($956.4 million)
  9. Haverty Furniture Companies ($821.6 million)
  10. Ethan Allen Interiors ($794.2 million)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Bed Bath & Beyondand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of bed-bath-beyond

Home Depot (HD) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Home Depot Inc with $89 billion revenues in the year 2016 was the number 1 Home Improvement Retail company. Read this report to know the top competitors of Home Depot and identify growth and cost optimization opportunities of Home Depot

Lowe’s (LOW) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Lowe's Companies Inc with $59 billion revenues in the year 2016 was the number 2 Home Improvement Retail company. Read this report to know the top competitors of Lowe's and identify growth and cost optimization opportunities of Lowe's

Williams-Sonoma (WSM) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Williams-Sonoma Inc with $5 billion revenues in the year 2016 was the number 4 Home Improvement Retail company. Read this report to know the top competitors of Williams-Sonoma and identify growth and cost optimization opportunities of Williams-Sonoma

Restoration Hardware (RH) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Restoration Hardware Holdings Inc with $2 billion revenues in the year 2016 was the number 5 Home Improvement Retail company. Read this report to know the top competitors of Restoration Hardware and identify growth and cost optimization opportunities of Restoration Hardware

Pier 1 Imports (PIR) Business Analysis – Analyze Historical Performance, Strategic...

Pier 1 Imports Inc with $2 billion revenues in the year 2016 was the number 6 Home Improvement Retail company. Read this report to know the top competitors of Pier 1 Imports and identify growth and cost optimization opportunities of Pier 1 Imports

La-Z-Boy (LZB) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

La-Z-Boy Inc with $2 billion revenues in the year 2016 was the number 7 Home Improvement Retail company. Read this report to know the top competitors of La-Z-Boy and identify growth and cost optimization opportunities of La-Z-Boy

Revenues Analysis

Bed Bath & Beyond (BBBY) Revenues And Revenue Growth From 2012...

This report provides the last five years revenues and revenue growth of Bed Bath & Beyond Inc (BBBY) from 2012 to 2016. Bed Bath & Beyond generated a total of $12.1 billion revenues during 2016. Bed Bath & Beyond reported a revenue growth of 1.9% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in February.

Bed Bath & Beyond (BBBY) Revenues And Revenue Growth From 2002...

This report provides the last fifteen years revenues and revenue growth of Bed Bath & Beyond Inc (BBBY) from 2002 to 2016. Bed Bath & Beyond generated a total of $12.1 billion revenues during 2016. Bed Bath & Beyond reported a revenue growth of 1.9% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in February.

Bed Bath & Beyond (BBBY) Revenue Growth Comparison With Industry Growth...

This report provides a comparison of Bed Bath & Beyond Inc (BBBY) revenue growth with Home Improvement Retail industry growth during the last five years from 2012 to 2016. Bed Bath & Beyond reported a revenue growth of 1.9% year-over-year during 2016. The Home Improvement Retail industry growth was 5.7% year-over-year during 2016. Bed Bath & Beyond growth was slower than the industry during 2016.

Profit Analysis