Bed, Bath and Beyond 2015 Annual Report Download - page 65

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
OVERVIEW
Bed Bath & Beyond Inc. and subsidiaries (the “Company”) is a retailer which operates under the names Bed
Bath & Beyond (“BBB”), Christmas Tree Shops, Christmas Tree Shops andThat! or andThat! (collectively,
“CTS”), Harmon or Harmon Face Values (collectively, “Harmon”), buybuy BABY (“Baby”) and World Market,
Cost Plus World Market and Cost Plus (collectively, “Cost Plus World Market”). Customers can purchase
products from the Company either in-store, online, with a mobile device or through a contact center. The
Company generally has the ability to have customer purchases picked up in-store or shipped direct to the
customer from the Company’s distribution facilities, stores or vendors. In the second quarter of fiscal 2015, the
Company acquired Of a Kind, an e-commerce website that features specially commissioned, limited edition
items from emerging fashion and home designers. The Company also operates Linen Holdings, a provider of a
variety of textile products, amenities and other goods to institutional customers in the hospitality, cruise line,
healthcare and other industries. Additionally, the Company is a partner in a joint venture which operates seven
retail stores in Mexico under the name Bed Bath & Beyond.
The Company accounts for its operations as two operating segments: North American Retail and Institutional
Sales. The Institutional Sales operating segment, which is comprised of Linen Holdings, does not meet the
quantitative thresholds under U.S. generally accepted accounting principles and therefore is not a reportable
segment.
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 strategy is centered on its customer-centric culture and its commitment to customer service:
• To do more for and with its customers wherever, whenever and however they wish to interact with the
Company.
• To provide its customers a seamless experience whether they interact with the Company in a store,
through one of its contact centers, on a desktop, tablet, smartphone or through social media.
• To be viewed as the expert for the home, including the accompanying life stages that make a house a
home, and to become the destination for customers’ needs and wants as they express their life interests
and travel through their life stages, all through the expanding and differentiated products, services and
solutions the Company offers.
The Company’s objective is to be its customers’ first choice for products and services in the categories offered,
in the markets, channels and countries in which the Company operates, as those customers express their life
interests and travel through their various life stages. The Company strives to accomplish this objective through
excellent customer service, including new products, services and solutions, and by offering an extensive breadth
and depth of differentiated merchandise at the right value. The Company is also enhancing its ability to achieve
this objective through its ongoing commitment to world class information and interactive technology,
comprehensive analytics and targeted marketing and communications.
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,
unemployment levels and commodity prices; the overall macroeconomic environment and related changes in the
retailing environment; consumer preferences, spending habits and adoption of new technologies; unusual weather
patterns and natural disasters; competition from existing and potential competitors across all channels of
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