Will Bed Bath & Beyond go out of business?
Retail industry watcher Michael Zakkour discusses Bed Bath & Beyond’s huge dip in the markets and how retail can keep up with competitors in coming years.
Bed Bath & Beyond agreed to sell online retailer PersonalizationMall.com to 1-800-Flowers.com for $252 million, the companies announced Tuesday.
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The sale comes as Bed Bath & Beyond has struggled to keep up with a changing retail landscape that has seen more consumers shopping online. The retailer's market capitalization has fallen from a peak of $17.35 billion in June 2012 to below $1.5 billion on Tuesday.
"PersonalizationMall’s extensive product offering and industry-leading personalization capabilities will be an excellent addition to our growing family of popular gifting brands," said Chris McCann, CEO of 1-800-Flowers.com.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BBBY | BED BATH & BEYOND INC. | 11.45 | +0.27 | +2.42% |
| FLWS | 1 800 FLOWERS COM | 17.00 | +0.41 | +2.47% |
The deal includes PersonalizationMall.com's website and 360,000-square-foot distribution facility in Bolingbrook, Illinois. Its revenues were more than $150 million in its most recent year, McCann said.
BED BATH & BEYOND FIGHTS FOR ITS SURVIVAL
"We expect PersonalizationMall.com to be accretive to our top and bottom-line results in fiscal 2021," McCann said.
(Photo by Kevork Djansezian/Getty Images) Last week, Bed Bath & Beyond said it saw a 5.4 percent drop in comparable sales in its fourth quarter, blaming dipping store traffic, inventory management issues and increased promotional activity and markdowns. It's another addition for 1-800-Flowers.com, which includes brands like Harry & David, The Popcorn Factory and Cheryl's Cookies. CLICK HERE TO READ MORE ON FOX BUSINESS FOX Business' Jonathan Garber contributed to this report. Source: Read Full Article