Bed Bath And Beyond Essay

648 Words3 Pages
In 1971, Bed, Bath and Beyond, originally named Bed ‘n Bath, was a partnership founded by Leonard Feinstein and Warren Eisenberg. Feinstein and Eisenberg started a chain of specialty shops in New York selling linens, bath products, and small home appliances. The first two Bed ‘n Bath stores were 2,000-square-feet and ideally located at a shopping plaza. By 1985, they opened 17 new stores expanding their chain outside of New York to various states including New Jersey, Connecticut, and California. During this period, many other specialty linen shops had introduced themselves into this growing niche market. Accordingly, Feinstein and Eisenberg needed to distinguish their store from the rapid increase of competition; they opened the first Bed ‘n Bath superstore in 1985. The monumental, new Bed ‘n Bath superstore…show more content…
They emphasized attentive customer service, along with reducing check-out waiting time by adding more cash registers, free home delivery for products that were out-of-stock, and creating a friendly, family atmosphere. These exceptional services allowed Bed, Bath and Beyond to reduce advertising costs by relying on customer’s word-of-mouth. Another important strategy Bed, Bath and Beyond implemented was their store layout. Seasonal items would be located in the front to encourage impulse shopping, while other products were grouped together, reaching the ceiling so customers can observe the vastness of the store. Feinstein and Eisenberg decided not to employ any vice-presidents. They focused on decentralization, allowing products to be directly delivered to the store, therefore reducing inventory costs. This gave managers the power to control the goods, as well as moderating prices to meet the competition. The unique hands-off management system provided Bed, Bath and Beyond the strongest return on sales during the early 1990s. By 1993, they had opened 38 stores in 11

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