CEO Mark Tritton announced that six members of the senior leadership team are leaving.
This week, Bed Bath & Beyond made some major changes to its executive leadership team. Six members of the company’s senior leadership team are leaving. The company said this is part of its plan to enter 2020 with “fresh perspectives from new, innovative leaders of change.”
Could this be a new beginning for Bed Bath & Beyond? Let’s look at a few more details about the leadership transition going on within the company.
Details on the leadership shake-up
Bed Bath & Beyond’s leadership transition really started last March when a group of activist hedge funds stepped in and demanded change. At the time, the company’s sales were declining, and its stock had been on a downward spiral for years.
The hedge funds claimed Bed Bath & Beyond had “lost touch with modern retail,” and demanded an overhaul of the company. Former CEO Steven Temares was ousted, and the company’s board was overhauled.
In October, the company appointed Mark Tritton as CEO. Previously, Tritton served in key roles at Target, Nordstrom, and Nike. He was seen as the right person to turn around the struggling retailer.
And it appears that Tritton’s first order of business is to shake up the company’s leadership team. Bed Bath & Beyond’s chief merchandising officer, chief digital officer, chief marketing officer, chief brand officer, general counsel, and chief administrative officer are all leaving.
Tritton released a statement saying that this is the first of many changes for Bed Bath & Beyond. He is also expected to revamp the company’s stores, boost its delivery capabilities, and grow its digital presence.
Making such a dramatic change during the holiday season is risky, but the market reacted favorably to the news. The company’s shares jumped by more than 7%.
Analysts seemed to be encouraged by the leadership shake-up as well. Telsey Advisory Group analyst Cristina Fernandez said that Tritton is taking “decisive and bold actions to execute a turnaround.”
Overall, the company’s stock is up 43% year to date, and the company is considered a moderate buy. Investors and analysts alike seem to be betting that a turnaround is in the cards for Bed Bath & Beyond.