Bed Bath & Beyond has a history of ordering too much inventory and then using discounts to move a product assortment that its current chief merchandising officer called "outdated." But so far this year, the retailer has halved the total number of its suppliers, and it won't stop there. Armed with new executives and a planned investment of $250 million, Bed Bath & Beyond is embarking on an ambitious and very large-scale turnaround effort. CEO Mark Tritton has nothing less in mind than a total overhaul of the retailer's supply chain, stores, and operations.
"There's a lot of low-hanging fruit and fruit on the ground," the CEO said. Cleaning up inventory management, changing the nature of supplier relationships and integrating an omnichannel mindset is some of the low-hanging fruit, but with an extensive tech upgrade yet to come — success will be contingent on careful execution.