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  • December 2021 (Revised February 2022)
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Bed Bath & Beyond: The New Strategy to Drive Shareholder Value

By: Benjamin C. Esty and Daniel W. Fisher
  • Format:Print
  • | Language:English
  • | Pages:26
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Abstract

At one time, Bed Bath & Beyond was one of the most successful specialty retailers in the United States—its growth and profit margins far exceeded both peer retailers in the home goods market as well as many other discount retailers. But in 2014, its stock price peaked, growth slowed, and margins began to shrink. By 2018, it was losing money and sales were declining as online and discount retailers (e.g., Amazon, Walmart, and Wayfair) entered the industry. Noting the underperformance, a group of activist investors tried to replace the entire board and leadership team in early 2019. Although they did not succeed, the company replaced five directors, asked the founders to retire, and appointed a new CEO named Mark Tritton in October 2019. About a year later, Tritton and a newly installed leadership team announced a new strategy “to unlock growth and drive significant shareholder value.” They also announced a new “financial roadmap” and capital allocation framework to deliver strong and sustainable total shareholder returns. The question is whether this turnaround plan could save the once-venerable retailer and help it regain a competitive advantage in the new, more competitive retail environment.

Keywords

Competitive Strategy; Competitive Advantage; Value Creation; Diversification; Corporate Governance; Leading Change; Performance Evaluation; Valuation; Investment Activism; Retail Industry; Consumer Products Industry; United States

Citation

Esty, Benjamin C., and Daniel W. Fisher. "Bed Bath & Beyond: The New Strategy to Drive Shareholder Value." Harvard Business School Case 722-408, December 2021. (Revised February 2022.)
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About The Author

Benjamin C. Esty

Finance
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Related Work

    • December 2021
    • Faculty Research

    Bed Bath & Beyond: The New Strategy to Drive Shareholder Value

    By: Benjamin C. Esty
    • December 2021 (Revised February 2022)
    • Faculty Research

    Bed Bath & Beyond: The New Strategy to Drive Shareholder Value

    By: Benjamin C. Esty and Daniel W. Fisher
Related Work
  • Bed Bath & Beyond: The New Strategy to Drive Shareholder Value By: Benjamin C. Esty
  • Bed Bath & Beyond: The New Strategy to Drive Shareholder Value By: Benjamin C. Esty and Daniel W. Fisher
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