Bed, Bath and Beyond 2014 Annual Report Download - page 3

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We finished fiscal 2014 with a solid performance and begin fiscal 2015 with confidence that we remain well positioned for
continued growth and for creating long-term shareholder value. Our ability to interact with and satisfy our customers
wherever, whenever and however they express their life interests and travel through their various life stages is our strategic
imperative. This has been our mission for the past 44 years and it continues to be the foundation for everything we do. In
today’s ever-evolving retail environment, this approach has never been more important.
Focusing on our Mission
Advancements in information technology are rapidly changing the retail landscape by connecting all of the traditional retail
sales channels to a vast and growing number of digitally empowered shoppers. The emergence of omnichannel retailing has
led retailers to try and create a more seamless and personalized shopping experience for their customers.
We have been committed to creating such an experience for quite some time. For example, since 2002, our associates have
been assisting customers in placing in-store orders for home delivery or pick up in store via The Beyond Store威, our proprietary
in-store-web-based channel. In addition, we have been leveraging our stores for order fulfillment for more than a decade. We
also have a long history of accepting returns in store without regard to the channel in which the purchase was completed.
When you are as customer centric as we are, these services are a natural extension of what you do to satisfy the customer.
But we are never satisfied. Every day we challenge ourselves to better understand and serve our customers’ needs and
shopping preferences. During fiscal 2014, we continued to make significant investments in our omnichannel retail capabilities
and we delivered on the following initiatives:
•Added new functionality to our selling websites, mobile sites and apps. We enhanced the search experience, giving our
customers more tools to help find what they are looking for more easily and efficiently. We also expanded our online
registry services for Bed Bath & Beyond. We now accept PayPal威transactions online and we continued to expand the
online acceptance of international credit cards. In addition, we have increased our global reach through a partnership
with a third-party expert that supports our efforts to service international customers.
•Significantly expanded and differentiated our merchandise assortment, both in-store and online. We have greatly
expanded our online merchandise offerings for many categories such as furniture, lighting and rugs. We have also
introduced new categories online, including jewelry, watches, mattresses and outdoor furniture. Today, we have more
than 200,000 unique SKUs accessible to our customers online or in-store through The Beyond Store, representing an
increase of more than 40% since January 2014.
•Opened a total of 22 new stores, including our first buybuy BABY store in Canada, and closed five stores. We continue to
actively manage our real estate portfolio in a manner that permits store sizes, layouts, locations and offerings to evolve
over time to optimize our market profitability.
•Deployed new systems, equipment and increased bandwidth in our stores. We have begun rolling out tools to further
empower our associates to be even more knowledgeable and informed as they engage with our customers on the selling
floor. We strive to provide a more personalized level of customer service and create a better and more dynamic shopping
experience for our customers.
•Continued investments in analytics, marketing and technology. We are leveraging available information and technology
to better understand our customers’ preferences and shopping habits. We are developing personalized target marketing
strategies to more effectively and efficiently interact and communicate with our customers.
Growing Globally and with a Complementary Business
In our 44-year history, our Company has grown to more than 1,500 retail stores, plus all of our digital channels and our
distribution facilities. Today we operate stores in all 50 states, the District of Columbia, Puerto Rico and Canada. Additionally,
we are a partner in a joint venture in Mexico and currently operate five retail stores in the Mexico City market. We have
continued our expansion in Canada and Mexico and remain excited about our growth opportunities in these countries. While
our digital channels extend our global reach, we also believe we have the opportunity to further expand our global footprint
and bring our merchandise and service offerings to other international markets.
Dear Fellow Shareholders and Beyond:
BED BATH & BEYOND 2014 ANNUAL REPORT
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