From Walmart to Best Buy, we're often hearing about major retailers reducing their retail footprint—whether by a little or a lot. But Bed Bath & Beyond closures have been particularly notable over the past year. This one-time retail giant has been steadily shuttering stores since Sept. 2022, downsizing its fleet by the hundreds. As it turns out, those Bed Bath & Beyond locations may not be empty for long, however. Retailers like T.J. Maxx and Ross are taking advantage of the space. Read on to find out more about the discount chains suddenly popping up in new places.
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Bed Bath & Beyond is cutting its store footprint in half.
Steve Hamann / ShutterstockIn an effort to stave off bankruptcy, Bed Bath & Beyond has been chopping away at its physical presence to reduce costs. The company confirmed in Aug. 2022 that it would be closing approximately 150 "lower-producing" banner stores. But that number has only grown since.
According to a Feb. 2023 regulatory filing with the U.S. Securities and Exchange Commission (SEC), Bed Bath & Beyond's total store closure list now includes more than 400 locations—which is nearly half of the estimated 955 stores that were open around this same time last year.
The company's "store fleet optimization program" includes the closure of some buybuy Baby locations, as well a shutdown of the entire Harmon brand—leaving just under 500 remaining stores overall.
"We have already initiated store closures in our Bed Bath & Beyond banner that will see us reach approximately 360 stores, in addition to approximately 120 buybuy BABY stores, across the U.S.," a Bed Bath & Beyond spokesperson previously toldBest Life.
But the closing stores may create opportunities for other retailers.
Retail Photographer / ShutterstockThe significant downsizing of Bed Bath & Beyond stores may have an upside for consumers. The company's emptying real estate is likely to act as a major resource for companies looking for more retail space, according to CNN.
As Brandon Isner, the head of retail research at the commercial real estate firm CBRE, explained to the news outlet, there hasn't been much new retail development since 2008, and availability is scarce because vacancy rates are quite low right now.
"E-commerce scared a lot of people off from building retail," Isner said. "A lot of great real estate is going to come available into a market where there’s been no vacancies. It will not take long for retailers to occupy those spaces."
T.J. Maxx and Ross are already taking over closed Bed Bath & Beyond stores.
ShutterstockShoppers will see at least two popular discount chains move into some of the former Bed Bath & Beyond locations. T.J. Maxx and Ross have already staked their claim on a couple of these spaces, according to CNN. In fact, residents in one New York town will see this switch take effect in just one week.
T.J. Maxx is relocating its store in Watertown, New York, to an already closed Bed Bed Bath & Beyond location in the city, WWNY reported. According to the outlet, the new T.J. Maxx location in Towne Center at Watertown will hold its store opening on March 30.
Michigan will also get one of its first Ross Dress for Less stores thanks to the Bed Bath & Beyond closures. The discount chain has no locations in the state currently, but is planning to open several soon, ABC-affiliate WXYZ reported. A city official told the news outlet that a Ross location is expected to open this summer in White Lake, Michigan, taking over a space that was formerly occupied by Bed Bath & Beyond.
Best Life reached out to both T.J. Maxx and Ross about their takeover of shuttered Bed Bath & Beyond stores, but has not yet heard back.
Other discount chains are likely to do the same.
Jonathan Weiss / ShutterstockT.J. Maxx and Ross are not the only discount retailers looking to take over the space that Bed Bath & Beyond is leaving behind. HomeGoods and Burlington may move into these closed stores as well, CNN reported. TJX (the parent company of HomeGoods and T.J. Maxx) and Burlington are two of the companies already in talks with Federal Realty, a real investment trust that owns nine Bed Bath & Beyond stores.
Best Life also reached out to HomeGoods and Burlington about these potential moves, but has not yet heard back.
Adding locations that once belonged to a now-struggling brand fits with Burlington's past expansion efforts. "For us, the biggest source of new store locations comes from other retailers closing stores," Burlington CEO Michael O’Sullivan said on an analyst call in February, per CNN. "So many of our most productive locations were formerly Circuit City or Toys 'R' Us or Sports Authority."
