Bed Bath & Beyond on Tuesday announced six senior members of its leadership would be exiting the company, including the chief merchandising officer, chief marketing officer, chief digital officer, chief legal officer and general counsel, and chief administrative officer. A sixth executive, the chief brand officer, resigned last week, according to a company press release.
The home goods retailer said the positions have been filled in the interim, though it did not name specific individuals. Bed Bath & Beyond has begun a search for a permanent chief merchandising officer, chief digital officer, general counsel, and a recently combined chief marketing and brand officer position.
"This is the first in a number of important steps we're taking," CEO Mark Tritton said in a statement. "Balancing our existing expertise with fresh perspectives from new, innovative leaders of change, will help us to better anticipate and support our customers in their life journeys and shopping needs."
Mark Tritton arrived at the struggling home goods retailer with his work cut out for him, but the extensive changes to his senior leadership team signals the executive isn't wasting any time in Bed Bath & Beyond's turnaround efforts.
Tritton, who took the helm at Bed Bath & Beyond just last month, most recently served as executive vice president and chief merchandising officer at Target, where he helped lead the mass merchant's turnaround. At Target, Tritton assisted in building a retail model that would ensure long-term relevancy among consumers and lead to profitable growth, in part by revamping the retailer's private label portfolio. According to Cristina Fernández, director and senior analyst at Telsey Advisory Group, private labels accounted for one-third of Target's sales; meanwhile at Bed Bath & Beyond, they accounted for just 10% of total sales.
As Tritton resets his team and tries to engineer a turnaround, the retailer isn't out of the woods yet. Bed Bath & Beyond swung to a loss in the second quarter and reported same-store sales fell 6.7% — the 10th straight quarter of declines in that measure. At the time, the company also raised its expected closures this year to 60, up from the previously projected 40.
"While there is much heavy lifting ahead to turnaround [Bed Bath & Beyond], investors should take solace in the fact that Mr. Tritton has experience in many of the key areas ... and that his equity-heavy incentive compensation aligns his interest with shareholders," Wedbush analyst Seth Basham said in an emailed client note. In the same note, he noted Wedbush raised its target stock price for the retailer from $16 to $18.
Bed Bath & Beyond is expected to report its next quarterly results on Jan. 8.