S&P Global Ratings on Wednesday lowered its issuer credit rating on Bed Bath & Beyond to BB+ from BBB-; the outlook is negative, according to a press release from S&P emailed to Retail Dive.
The retailer’s highly promotional stance and the growing expense of its omnichannel services are likely to vex the company in the next 12 to 24 months, S&P said. “We believe the company’s competitive position has eroded, as measured by a cumulative double-digit decline in EBITDA and 530 basis points (bps) of erosion in margins over the last two years.”
Earlier this month, Moody’s lowered the retailer’s senior unsecured notes rating one notch to ‘Baa3’ and revised its outlook to stable from negative; the move reflected “a significant decline in Q2 gross margin driven by higher couponing, lower merchandise margin and higher e-commerce shipping costs,” according to a Wells Fargo news brief emailed to Retail Dive.
Shoppers desire for “Self Expression” means that retailers and brands must become more transparent to build a stronger bond with their customers. Learn from IBM experts as they discuss ways your brand can resonate with consumers.
Bed Bath & Beyond has struggled to sell goods that can…