Bed Bath & Beyond Inc. is hoping that its e-commerce investments will pay off in the form of increased sales.
The retailer has devoted roughly 40% of its capital expenditures so far this year to investing in technology upgrades, which includes improvements to its online sales channels, chief financial officer Sue Lattmann said on the retail chain’s Q3 2017 earnings call this week. Lattmann didn’t specify how that compares to previous years, and a quick check of the retailer’s earnings call transcript from Q3 2016 did not reveal any additional information regarding to digital spending.
Bed Bath & Beyond CEO Steven Temares told analysts that shoppers in 2018 can expect these investments to result in an improved online shopping experience.
“We will do this by providing a complete and differentiated assortment that is easily searched by having the right information and content that helps our customers make confident purchase decisions as well as ensuring that the experience is frictionless at all stages and intelligently personalized,” he said, according to a transcript from Seeking Alpha.
Bed Bath & Beyond, No. 68 in the Internet Retailer 2017 Top 500, plans to introduce dynamic pricing, wherein the retailer will adjust the prices of thousands of online items throughout the day. The retailer is also evaluating its fulfillment and delivery processes.
“We are examining all aspects of our logistics network to improve speed and efficiency, convenience and the overall delivery experience for our customers, especially as we expand our position within the [home] furnishings and decor category,” he said. “We are comprehensively evaluating our supply chain and utilizing industry-leading optimization software to accomplish this goal. This supply chain study will help us optimally structure and resource our current infrastructure for future business demands.”
For the fiscal third quarter ended Nov. 25, Bed Bath & Beyond reported:
- Net sales of $2.955 billion, down slightly from $2.956 billion during the same time last year.
- A comparable sales decline, including e-commerce, of 0.3%.
- Net profit of $61.3 million compared with $126.4 million.
For the first nine months of 2017, Bed Bath & Beyond reported:
- Net sales of $8.633 billion, down 0.6% from $8.682 billion during the same time last year.
- Net profit of $230.8 million compared with $416.4 million.