Shares of Bed Bath & Beyond (NASDAQ:BBBY), the home furnishings retailer, jumped as much as 13% on Tuesday after the company announced an extensive shake-up of its leadership team.
Not even two months after taking the helm as Bed Bath & Beyond's next CEO, Mark Tritton, a former Target vice president, is making serious moves and setting a new tone. Five senior executives will be leaving their positions, including the chief merchandising officer, chief marketing officer, chief digital officer, chief legal officer and general counsel, and chief administrative officer. Add to that the chief brand officer's prior resignation.
In a release announcing the changes, Tritton said:
... This is the first in a number of important steps we're taking. Balancing our existing expertise with fresh perspectives from new, innovative leaders of change will help us to better anticipate and support our customers in their life journeys and shopping needs. As we look to the future, I would like to thank all those leaving today for their work and commitment to our business over many years.
These moves were anticipated after the company co-founders retired and much of the board of directors was replaced. After Bed Bath & Beyond's strategy fell behind the rest of the retail industry in recent years, frustrated investors pushed for major changes -- including Tritton becoming only the third CEO in company history, and the first outsider to take over. The new leadership team will have its work cut out for it, with the aim being to streamline decision making, optimize product assortment, improve the shopping experience, and begin a significant companywide transformation.
With Tritton's retail and merchandising background, and fresh leadership perspective, there are reasons for investors to be optimistic. The stock has jumped 62% over the past three months, but investors would be wise to temper expectations since sweeping changes and significant transformations are rarely smooth and quick. Stay tuned for the company's new strategic vision, coming in early 2020.