What happened
Shares of Bed Bath & Beyond (BBBY) were rising on Monday, after the company said that its online sales have increased so much that it has begun using some of its shuttered stores as fulfillment centers.
As of 11:30 a.m. EDT today, Bed Bath & Beyond's shares were up about 15.5% from Friday's closing price.
So what
In a statement on Friday, the company said that it is "rapidly evolving to meet the changing needs of its customers" by devoting more resources to support an 85% increase in its online sales.
About 25% of its brick-and-mortar stores in the U.S. and Canada have been converted into regional fulfillment centers, roughly doubling its ability to fulfill online orders, it said. Many of its other stores have launched "contactless" curbside pickup services, allowing customers to safely receive items ordered online.
Bed Bath & Beyond is using some of its closed stores as distribution centers for its online business. Image source: Bed Bath & Beyond.
The moves have allowed Bed Bath & Beyond to recall hundreds of furloughed store workers, and to create several hundred new jobs as it ramps up its existing distribution centers.
Now what
While this is good news, investors should keep in mind that it still isn't clear when Bed Bath & Beyond will try to reopen its physical stores. Furloughed employees who were eligible for healthcare benefits will continue to receive them "until further notice," it said in Friday's statement, but the furloughs (and pay cuts for executives) have been extended until at least May 16.
While the company still has plenty of cash, it can't hold out indefinitely, even with a surge in online sales. Stay tuned.
