Every month since the start of the year, Bed Bath & Beyond has been announcing more and more store closings. Now the company has announced it’s shuttering 400 stores in an attempt to stave off bankruptcy.
Bed Bath & Beyond Stores to close 400 stores forever
In January, Bed Bath & Beyond announced it was closing 62 stores, which was in addition to the 56 stores it announced it was shuttering in September, bringing the total store closures to 120, USA Today reported at the time.
In February, Bed Bath & Beyond announced yet another round of store closings – adding 87 to the list, as the company continued its efforts to turn around its beleaguered business, FOXBusiness reported.
Reuters reported that sources revealed to them Bed Bath & Beyond was preparing to file for Chapter 11 bankruptcy as soon as that same week.
In March, Bed Bath & Beyond announced a shocking number of store closings, revealing the company was shuttering 400 stores as it continues the fight to try to avoid bankruptcy, CNN reported.
Why Bed Bath & Beyond stores won’t be coming back
Bed Bath & Beyond stores are blowing out inventory as they take steps to close down 400 stores. Even if the company were to turn things around, there is one major reason why the stores are unlikely to return.
As it turns out, there is a shortage of ample space available for large retailers at prime locations.
Commercial construction of retail space hit a new low in 2022 for the third consecutive year, according to CBRE, a commercial real estate firm. The e-commerce boom has frightened off a lot of people from investing in the expensive costs of retail buildings.
Reportedly, there is a strong interest in the spaces soon to be vacated by Bed Bath & Beyond stores. As the company vacates its stores, other major retail chains that are in need of space are snapping up the vacancies, including TJ Maxx, HomeGoods, and Ross. Other retailers such as Burlington, Five Below, Nordstrom Rack, and budget gym Planet Fitness are also in need of available space, according to retail landlords and real estate analysts.
Retail vacancies are the lowest they have been since 2005, falling to only 4.9% by the end of 2022.
If Bed Bath & Beyond were able to return and was able to open new stores again, they would be hard-pressed to find available space, and at nowhere near the leasing prices they bargained for the first time around.
