Bed Bath and Beyond (BBBY) has reduced hours and cut back on air conditioning because of the high inflation, according to a report from analysts who cover the business in Bank of America.
“From our channel checks and store visits, we believe that BBBY is trying to quickly trim expenses to align costs with comp declines,” analysts stated in a letter to customers:
“Labor hours have been dramatically reduced, while utilities (e.g. air conditioning) have been reduced and opening hours for stores will be reduced beginning in July (e.g. opening at 11am rather than 10am). Remodels are either delayed or canceled. We expect mgmt. to announce additional store closures and stop its purchase by BABY stores opening (vs. the consensus of. 21 as per Visible Alpha). This year, BBBY's Beyond+ rewards program is being replaced by ‘Welcome Rewards.’”
The firm had difficulty resolving supply issues in its final quarter, stating that the issue would persist throughout the year ahead, according to The Associated Press (AP).
“It also reported a surprise loss in a quarter when many other retailers booked surging profits,” the outlet reported. “The retailer hasn't been able to get popular items and this is slowing sales. In the three-month period that ended February 26, sales dropped 22 percent in the range of $2.05 billion.”
This month, Best Buy shared its first quarter results, which revealed that shoppers were able to keep their cash “while higher costs ate into profits,” according to the AP.
The company was successful during the coronavirus outbreak when consumers purchased tech gadgets to use at home office spaces or their children's online classes.
“But like many retailers, Best Buy is struggling with rising costs for everything from labor to shipping,” the report added. “And soaring fuel costs and the return of promotions are hurting its bottom line.”
In the meantime, pro-Joe Biden Hollywood was also struggling when the cost of movie and television productions increased and some industry executives claimed inflation was impacting nearly all aspects of business.
“Inflation is so bad in Hollywood that NBCUniversal is trying to economize by clustering filming locations and taking advantage of ‘volume discounts with key vendors,' according to Mark Binke, executive vice president of production at the Comcast-owned studio,” News published.