The Company's Strategy

The Company's strategy is to achieve this objective through excellent customer service, an extensive breadth and depth of assortment, everyday low prices, and introduction of new merchandising offerings and development of its infrastructure.

Company was more concentrate on offering the better quality merchandise found at department stores at price or below the department store sales price. They were 20% to 40 % below department store regular prices. Because of low pricing customer no longer had to "wait for sale". In BBBY private label goods were sold along with the branded products at low price. The central buying office was involved in all initial purchases, enabling BBBY to obtain the best price. BBBY was intent on preserving value during the expansion process.

Bed Bath & Beyond had the superstores format mean covered at 40000 square feet and were packed fro ceiling with merchandise of a breadth and depth unmatched by most competitors. Their policy was not using warehouse and shipping all inventory directly to stores ensured that merchandise was almost always in the stock.

The main success behind the BBBY was they were more customer oriented. Their goal went beyond simply satisfying customers to producing customers so happy with their experience at BBBY. Because of satisfying customer they became word of mouth advertisers for the stores.

Operating in the highly competitive retail industry, the Company, along with other retail companies, is influenced by a number of factors including, but not limited to, general economic conditions including the housing market, the overall macroeconomic environment and related changes in the retailing environment, consumer preferences and spending habits, unusual weather patterns, competition from existing and potential competitors, and the ability to find suitable locations at acceptable occupancy costs to support the Company's expansion program.

Although there appears to be some indication of improvement in economic conditions, the difficult conditions affecting the overall macroeconomic environment continued to impact the retail sector in general. The Company belief that the uncertainty in the macroeconomic environment and factors such as the high unemployment rate and issues specific to the housing industry, including a reduction in home values, continued to negatively impact consumer confidence and the level of discretionary spending by consumers. The Company cannot predict whether, when or the manner in which these economic conditions will change.