Bed Bath & Beyond is making its customers and employees sweat these days.
The struggling home goods chain – which reported a sharp drop in sales last quarter – is refusing air conditioning in its stores in a bid to cut costs, according to Bank of America analysts who visited the stores.
In addition to turning down the thermostat, the company has cut employee hours and canceled renovation projects, according to the report.
“Based on our store visits, we believe that Bed Bath & Beyond is trying to cut expenses quickly to bring costs in line with [sales] declines,” according to the Bank of America report. The report also claims that the chain will reduce store opening hours in July when opening hours are pushed back to 11 a.m. from 10 a.m.
The retailer denied it was cutting back on utility costs.
“We have been contacted about this report, and to be clear, no Bed Bath & Beyond stores have been asked to adjust their air conditioning and there have been no changes in company policy regarding air conditioning. ‘utility use,’ the company told the Post on Tuesday. .
In April, Bed Bath & Beyond announced that its sales fell 22% in the last quarter ended February 26. Management blamed supply chain grumbling for a product shortage at its 771 stores in the United States.
The company was pressured to sell itself or make substantial changes to its business. In March, he bowed to pressure from activist investors from billionaire Ryan Cohen — who founded Chewy.com and sold it for $3.3 billion — by adding three new directors to his board.
Wall Street does not expect things to have improved when the company reports second-quarter results on Wednesday.
“It’s no surprise they’re looking for additional ways to save money, as the sales trends aren’t going in their favor,” said M Science analyst John Tomlinson. “Our data looks pretty negative” for the company and “people clearly expect sales to be weak tomorrow.”
Other worrying developments for the Union, New Jersey-based company include the recent resignations of chief accounting officer John Barressi and senior vice president of financial planning Heather Plutino.
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