Bed, Bath and Beyond 2011 Annual Report Download - page 7
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BED BATH & BEYOND 2011 ANNUAL REPORT
5
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
OVERVIEW
Bed Bath & Beyond Inc. and subsidiaries (the “Company”) is a chain of retail stores, operating under the names Bed Bath &
Beyond (“BBB”), Christmas Tree Shops (“CTS”), Harmon and Harmon Face Values (“Harmon”) and buybuy BABY. In addition, the
Company is a partner in a joint venture which operates two stores in the Mexico City market under the name “Home & More.”
The Company sells a wide assortment of domestics merchandise and home furnishings. Domestics merchandise includes categories
such as bed linens and related items, bath items and kitchen textiles. Home furnishings include categories such as kitchen and
tabletop items, fine tabletop, basic housewares, general home furnishings, consumables and certain juvenile products. The
Company’s objective is to be a customer’s first choice for products and services in the categories offered, in the markets in which
the Company operates.
The Company’s strategy is to achieve this objective through excellent customer service, an extensive breadth and depth of
assortment, everyday low prices and introduction of new merchandising offerings, supported by the continuous development
and improvement of its infrastructure.
Operating in the highly competitive retail industry, the Company, along with other retail companies, is influenced by a number
of factors including, but not limited to, general economic conditions including the housing market, the overall macroeconomic
environment and related changes in the retailing environment, consumer preferences and spending habits, unusual weather
patterns and natural disasters, competition from existing and potential competitors, and the ability to find suitable locations at
acceptable occupancy costs to support the Company’s expansion program.
The Company continues to face a number of economic challenges impacting consumer confidence and spending, including
relatively high unemployment and commodity prices and a sluggish housing market. The Company cannot predict whether,
when or the manner in which these economic conditions will change.
The Company remains committed to making the required investments in its infrastructure to help position the Company for
continued success. The Company continues to review and prioritize its capital needs while continuing to make investments,
principally for new stores, existing store improvements, information technology enhancements including increased spending on
its interactive platforms, and other projects whose impact is considered important to its future.
The following represents an overview of the Company’s financial performance for the periods indicated:
A store is considered a comparable store when it has been open for twelve full months following its grand opening
period (typically four to six weeks). Stores relocated or expanded are excluded from comparable store sales if the
change in square footage would cause meaningful disparity in sales over the prior period. In the case of a store to be
closed, such store’s sales are not considered comparable once the store closing process has commenced.