Bed, Bath & Beyond Targets North American Domination

Bed, Bath & Beyond plans to open more of its namesake stores in 2009 than it did in 2008, in part to win customers of now defunct Linens ‘N Things but also to press its plans to dominate the home furnishings retail sector in North America.

Despite being slowed by the soft economic environment and liquidation sales at Linens ‘N Things, which had been its major specialty store competitor, Bed, Bath & Beyond said in its fourth quarter conference call that it would open 50 to 54 new namesake stores in fiscal 2009 up from 49 openings in fiscal 2008.

For years, considerations of Bed, Bath & Beyond’s successful growth have been shadowed by the question of when it would reach its store potential in the United States. At one time, the number of potential stores was set at 1,000. For awhile, Bed, Bath & Beyond even tried opening smaller stores to see if it could add more to markets than its own estimates suggested. The company moved away from the smaller store strategy, but still increased its estimate to 1,200 stores. It also acquired other chains that it viewed as having the potential to boost corporate growth, yet, it still has counted on Bed, Bath & Beyond to be its major expansion vehicle.

With 930 Bed, Bath & Beyonds operating at the end of fiscal 2008, it might seem like a store growth dead end might loom, but the company has determined to regard that barrier as a speed bump by developing a broader point of view. Two years ago it entered Canada, where it added a fourth store in 2009. It also entered into a joint venture in Mexico where it operates stores similar to Bed, Bath & Beyond under the nameplate Home and More

In the conference call, Bed, Bath & Beyond co-chairman Warren Eisenberg said, “We believe that within the United States and Canada there is an opportunity to open in excess of 400 additional Bed, Bath & Beyond stores, and we also strive over time to become leading home furnishings retailer in other countries where we do business.”

So the company’s plans call for it to open more stores in Canada during this fiscal year as part of the 50 to 54 unit addition it is planning. Even if it didn’t announce additional stores for Mexico, and the company will probably take some time learning about that country’s operating environment, Eisenberg’s declaration is important to consider, as Bed, Bath & Beyond is deliberate in its statements. It doesn’t even take questions in its conference calls. So, the Eisenberg comment is substantial evidence that the company, while gradually building on the total 107 Christmas Tree Shops, Harmon and buybuy Baby location it operates, will rely on its central store concept both under the name Bed, Bath & Beyond and Home and More to remain its major growth vehicle, one that will take it further a field in a territory that could potentially range from the arctic to the Yucatan Peninsula.