Bed Bath & Beyond’s (BBBY) coupons may have already expired but you can still squeeze some value from them.
The Container Store Group Inc. (TCS) said it will give a 20% discount off any single item to shoppers who bring a “competitor’s blue coupon” to any store location by May 31. The phrase obviously refers to the freshly bankrupt home goods retailer.
At Big Lots Inc. (BIG), a blue coupon will get you 20% off a purchase of $50 or more by May 7.
"For anyone who has missed their last opportunity to redeem one of these coupons, Big Lots is opening our doors to help you save on your entire purchase,” CEO Bruce Thorn said in a statement.
One retailer's demise is another's opportunity
Bed Bath & Beyond filed for Chapter 11 protection from creditors earlier this week. As the retailer winds down its operations, 360 of its name brand stores, plus an additional 120 buybuy Baby stores, will eventually close.
The Container Store and Big Lot’s efforts to exploit the demise of a competitor is both expert trolling and first class marketing. After all, why waste a perfectly good bankruptcy, especially when you can boost sales and perhaps peel off Bed Bath & Beyond shoppers who still need towels, sheets, and electric toothbrushes?
But in case anyone gets too cocky, retailers of all stripes face a rocky road ahead. Big Lots and The Container Store are not exactly killing it on Wall Street: shares for both retailers are significantly down from a year ago.
Situation is much more complicated
After a boom in online sales during the pandemic, retailers are facing a volatile economy in which inflation and rising prices are prompting consumers to cut back on discretionary spending.
And as much as people love to say e-commerce is killing brick-and-mortar chains, especially once dominant category killers like Bed Bath & Beyond, the situation is way more complicated.
Retailers, most notably Amazon Inc. (AMZN), have still not figured out how to consistently make money from online sales. And companies like Walmart Stores Inc. (WMT), Macy’s Inc. (M), and Target Corporation (TGT) are still looking to build physical stores, though they are much more intentional about cost and location.
Looking ahead, UBS retail analyst Michael Lasser estimates that 50,000 of the 940,000 stores in the U.S. will close by 2027, excluding gas stations. However, this predicted number is actually down from the 80,000 closures Lasser predicted in 2021, according to CNBC.
