Bed Bath & Beyond is Focusing on Digital Growth

Last quarter, BBBY sales fell -5%, largely due to the sale of noncore assets like World Market and store closures. On the bright side, digital sales increased  +77% YoY. Bed Bath & Beyond's banner store led the way in digital execution, with online sales increasing +94% YoY. These omnichannel offerings are fueling the company's turnaround. BBBY gained 2.2 million new digital customers during the quarter, 36% of digital digital sales were fulfilled by stores, and 16% of eCommerce orders were picked up in stores. In late September, BBBY announced partnerships with Shipt and Instacart to facilitate same-day delivery and capitalize on the upcoming Holiday season. LikeFolio data suggests these efforts were effective. BBBY's omnichannel fulfillment mentions increased 140% YoY in the last quarter, which encompassed much of the Holiday season (Nov. 29 - Feb. 27).

While these digital fulfillment mentions remain elevated YoY, they are normalizing -- and this will be critical to watch moving forward. Bed Bath & Beyond will announce 20Q4 results on April 15.