But we were flying blind without a radar, being fiscally irresponsible.” As a result, he said, “we’re building more disciplined processes to drive more effective and disciplined promotions.” These comments set off the usual wave of media alarmism, with various articles fretting about the “end of Bed Bath & Beyond coupons,” with little acknowledgment or awareness that the company has been discussing these plans for years now.)
(Update: A day after this story was published, Bed Bath & Beyond Chief Merchandising Officer Joe Hartsig elaborated on the company’s promotional plans in an investors conference, saying that the retailer has “an overreliance on the coupon, which, when used right, is an effective and very strategic asset. And we’re seeing very good business as a result.” “As we’ve opened up,” Tritton said over the summer, “we’ve pulled back on coupons. So, through “careful curation” and testing, “the coupon for us is a strength and it’s an opportunity – used correctly.”Īs more customers shopped online when stores were closed during coronavirus lockdowns, Bed Bath & Beyond discovered that coupon use wasn’t as prevalent among online shoppers as it was among in-store shoppers. “We’re embarking on a journey on how we use our resources more effectively and strategically,” CEO Mark Tritton said.
BED BATH AND BEYOND COUPONS FULL
New young customers who don’t use coupons? Problem solved! Just wait til older shoppers who cling to coupons fade away, attract more younger shoppers who happily pay full price, and Bed Bath & Beyond may not be known as the store that always offers coupons anymore. And crucially, these new customers “are six years younger on average than our existing customers and less likely to use coupons.” “We gained approximately two million new online customers this quarter, and 42% of these customers were new to our brand,” Chief Brand Officer Cindy Davis said. In recent comments to investors, company executives highlighted their online growth. Young people, it seems, aren’t using them. So Bed Bath & Beyond has tried threading the needle, pleasing everyone and no one by gingerly cutting back on coupons without cutting back too much.īut now, Bed Bath & Beyond has made an important discovery that could solve its dilemma about coupons.
But cutting back or eliminating the coupons could mean cutting back or eliminating sales to those who are accustomed to always shopping with a coupon. At the same time, the retailer’s middling financial performance over the years has prompted investors to question whether it’s been too generous with its coupons. For a long time, few people would dream of buying anything at the store without one of its 20% off coupons. The housewares chain has long struggled with the consequences of boxing itself into a reputation as the store that always offers coupons. How about waiting for all the couponers to die out? So what can Bed Bed & Beyond do about its ubiquitous coupons that seem to be costing it money? Investors may want them to disappear, but that could make customers disappear.
Bed Bath & Beyond may hate them, but it can’t live without them.
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