BBBY - Bed Bath & Beyond

[Spekulatius]

After reading the earnings call transcript i am under the impression that they really have a strategy to survive the next decade. BEYOND+ is a similar program to Prime, with 20% off prices and free shipping. Just from what i read it looks like they are driving people into this programm to have repeat customers. But this comes at the expense of short term profits, because people just sign into that programm when they do their first larger purchase. But after a year the online coupon is off, giving them much more profit from online purchases while the customer is still hooked into the program. I really like these type of programs as an investor because it widens the moat and gives repeat cashflow. 20% of their sales are already online, so at some point the online sales are the driving force.

Has someone an opinion on BEYOND+ or some first hand experience?

 

This is more or less just a continuation of their mail coupon program. They used to sent 20% off coupons to virtually any household every couple of weeks, but no more. Moving this online rather than carpedbombing mail coupons makes sense, since they can track customers better and customize the program.

[Jurgis]

After reading the earnings call transcript i am under the impression that they really have a strategy to survive the next decade. BEYOND+ is a similar program to Prime, with 20% off prices and free shipping. Just from what i read it looks like they are driving people into this programm to have repeat customers. But this comes at the expense of short term profits, because people just sign into that programm when they do their first larger purchase. But after a year the online coupon is off, giving them much more profit from online purchases while the customer is still hooked into the program. I really like these type of programs as an investor because it widens the moat and gives repeat cashflow. 20% of their sales are already online, so at some point the online sales are the driving force.

Has someone an opinion on BEYOND+ or some first hand experience?

 

This is more or less just a continuation of their mail coupon program. They used to sent 20% off coupons to virtually any household every couple of weeks, but no more. Moving this online rather than carpedbombing mail coupons makes sense, since they can track customers better and customize the program.

 

Not completely just a continuation:

 

You love coupons (hey, who doesn't?). But why wait for one? For just $29 a year, BEYOND+ members get 20% off their Entire Purchase and free shipping!

 

I don't see a value of this for us.

 

I agree with Spekulatius that this looks better for the store than postal mail 20% off carpetbombing. I don't know the second order dynamics though: do they have a lot of customers who won't go to the stores now that they don't receive 20% off postal coupons? who either don't know about online program or don't want to pay for it? I guess we'll see.

[Stuart D]

BBBY is up 20% after hours on news of appointing former Target executive Mark Tritton as CEO.

 

Anyone familiar with Mark Tritton's management? Is the market right, or is this an over-reaction?