Retail Faces 'Train Wreck' As Every Trade Class Struggles
Updated: Dec 29, 2022
All of Retail is a train wreck, with Bed Bath & Beyond (BBBY) among the dozens of retailers going through a massive, accelerating “Retail Ice Age” and in danger of passing the “denouement” of viability, as Burt Flickinger discussed with Kristen Scholer on Cheddar “Closing Bell” News.
Beyond the dismissal of CEO Mark Tritton, BBBY has 700-1,000 more stores than they need and is being “reverse Category-Killed,” mostly by Target, Dollar & Category Dominant stores, while burning close to $100 million in cash each month. With its stock trading at about $5, its lowest in decades, BBBY might be an attractive takeover target at $1 or $2 a share, but a new CEO can't fix it fast enough & should sell the retailer's leases and real-estate assets to strategic shopping center buyers who can produce more profitable sales per property and per square ft & try to keep BBBY viable.
Moreover, every class of Retail is struggling, ranging from Walmart Supercenter #377 in Indianola, Mississippi, which I just visited and found the parking lot mostly empty. Same with Walmarts in Little Rock, its home-state of Arkansas, as well as throughout the South, Midwest & North. This Retail Recession is going to be as bad or worse than the epic retail recession of 2008-2010.
Strategic Resource Group is the lead retail and brand CPG consulting firm throughout the United States and the globe. With more than three decades of experience, our team strategically collaborates with top retail chains, wholesalers, suppliers, and investment firms. Our retail industry experts are highly skilled at illuminating retail trends, identifying opportunities to increase consumption, and growing retail sales.
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