The ax has fallen at Bed, Bath & Beyond as part of the realignment of its .store management structure.
The retailer said it has initiated in approximately half of its U.S. Bed Bath & Beyond stores and about a dozen of its buybuy Baby stores a limited realignment of its store management organization that will result in the elimination of about 880 department and assistant store manager positions.
"As we work to continue to satisfy our customers through our omnichannel capabilities, the role of our stores is also evolving, and remains crucial to achieving our mission of being trusted by our customers as the expert for the home and heart-felt life events," said Steven H. Temares, CEO, Bed Bath & Beyond, Union, New Jersey. "The actions taken today to accelerate the realignment of our store management will allow us to better support our customer-focused initiatives as well as support our omnichannel growth, while driving operational excellence."
The changes are estimated to generate future annual pre-tax cost savings for the retailer of approximately $16 million, with the pre-tax cost savings for the remainder of fiscal 2017 are estimated to be approximately $7 million. The company expects to incur related restructuring charges of approximately $17 million in fiscal 2017, primarily for severance and related costs, all of which will be expensed in the second quarter.
"These actions accelerate a transition in store management roles that began more than a year ago through store hiring practices and attrition," the company stated. "These efforts simplify the store management structure and strengthen the company's ability to meet the growing and changing desires of its customers by focusing additional staffing needs in non-management roles, and placing less emphasis on a management structure that supported a more rapid rate of store growth."
In addition, Bed Bath & Beyond said it has established a "strategic portfolio management office," and additional resources have been engaged, including industrial engineers, to drive operational excellence.