BBBY stock is in the red this week after Bed Bath & Beyond Inc (NASDAQ:BBBY) appointed former Walgreens’ marketing boss Joe Hartisg as its new Chief Merchant.
The home goods chain, which has had a rocky few months, announced earlier this week that Harstig would be taking on the position of Chief Merchandising Officer, as well as heading up the company’s cosmetics, health, and beauty business, and the Harmon Stores division. Hartsig most recently served as senior VP and Chief Merchandising Officer at Walgreens (NASDAQ:WBA), where he managed the front of store retail products division. He joined Walgreens in 2013 and before that served as senior VP, GMM, at Walmart’s Sam’s Club. BBBY stock is currently trading for $9.55.
“To rebuild our business, we need leaders of change. Improving the curation and differentiation of our assortment is our number one strategic priority, and Joe will be the driving force behind our ambition to make it easy to feel at home with Bed Bath & Beyond, while also providing the leadership and vision needed to grow our Harmon business,” said CEO Mark Tritton.
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After a difficult 12 months that saw some wild fluctuations in BBBY stock, recently appointed CEO Tritton has made several executive-level changes. He ousted six executives, which included the company’s Chief Merchandising Officer, Marketing Officer, Digital Officer, General Counsel, and Chief Administrative Officer, as well as cutting 500 jobs at the corporate level as part of a cost-cutting plan, which is expected to save around US$485 million.
Those cost-cutting initiatives are part of a broader restructuring effort at the firm that will see US$400 million spent on remodeling stores and supply chain improvements, along with about US$600 million this fiscal year on share repurchases and debt reduction. BBBY stock is down around 40% in the last year, and well off its all-time peak of $70 seen in January 2014, as the retailer struggles to contend with the rise of e-commerce.
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