Bed Bath & Beyond is primarily a bricks and mortar company. Most of its products are available online through Amazon. The company was late to e-commerce and has been playing catch up, investing in upgrading its online presence, introducing mobile apps and rolling out a new point-of-sale system. On the plus side, sales from digital channels have been increasing, but conversely, same-store sales at the brick and mortar stores have been flat. That’s a problem because online sales have lower margins and the shift of sales to the internet cuts into company’s ability to lever the fixed costs of running stores.
Is there still a place for brick and mortar stores whose products are readily available online?
Has Bed Bath & Beyond been successful in competing with companies such as Amazon?
Is Bed Bath & Beyond likely to be forced into filing for bankruptcy? Explain.