"The company has not followed the evolution of the customer and the way consumers buy today," said Mary Winston, interim CEO, at analysts at a conference Wednesday.
Bed Bath & Beyond said sales at stores open at least a year had dropped 6.6% in its last quarter. Bed Bath & Beyond also lost money in the last quarter.
Bed Bath & Beyond strives to find a new general manager capable of transforming the retailer as competition intensifies.
Despite efforts to drive down prices, Bed Bath & Beyond remains about 10% more expensive than Amazon for similar items, according to a study conducted this week on prices by UBS from both retailers.
Retail analysts remain skeptical. Bed Bath & Beyond "could run out of time, and the company will have to keep investing to survive," Oliver Wintermantel, analyst at Evercore ISI, said Thursday. "It's hard for us to get excited" for society.
New generation stores
The company's first task is to close the inefficient Bed Bath & Beyond stores and its many stores. Bed Bath & Beyond has nearly 1,000 stores in the United States, as well as hundreds of World Market, Cost Plus, Buy Buy and Harmon stores.
In stores that he plans to keep open, he will try to reduce clutter. Critics have stated that Bed Bath & Beyond stores are too messy, with goods piled high up.
"We need to give our customers a reason to continue shopping in our physical stores," said Winston. "To do this, we must update and improve the store experience."
Business leaders are also banking on its "new generation laboratory stores" to attract customers.
Bed Bath & Beyond has remodeled over 30 stores in a variety of configurations to give shoppers a better view of the merchandise. He is testing new ideas in these "labs" that sell more home decor, food, health and beauty products than traditional stores.
Bed Bath & Beyond hopes to be able to use what's working in stores and deploy it throughout the store, Winston said.