Union, N.J. – Bed Bath & Beyond has put a price tag on how much it expects in annual savings by getting better prices from current vendors.
In an update filed with the SEC today, the retailer said it should be able to generate approximately $200 million in savings each year by renegotiating better terms.
As previously announced, the company has also embarked on an initiative to remove about $1 billion in inventory from within Bed Bath & Beyond store locations over the next 24 months. That sum includes inventory associated with the 200 units its plans to shutter over the same period.
Although the filing did not specifically address recent reports that BBB is shopping the Cost Plus World Market and Christmas Tree Shops/AndThat chains, the company said the sale of non-core assets could bring in $350 million to $450 million.
“This work is well underway, and the company will share more information, as appropriate,” Bed Bath & Beyond said.
For the month of June, total comparable sales for stores that have reopened and from digital channels combined was positive. Further, cash flow was positive in June, the company reported. Total net sales for the month of June were down 7%. An 80% jump in digital sales offset a 25% decline in sales at brick-and-mortar locations, it reported.
Nearly all stores closed during in response to the COVID-19 pandemic had reopened by this past weekend.
Bed Bath & Beyond also held its annual shareholder meeting today, albeit as a virtual event. Corporate President and CEO Mark Tritton reiterated information shared during the company’s Q1 conference call last week.