Consumer Experience

What Are You Spending Your Money On? (eCommerce)

 

I was just watching Jim Kramer on CNBC.  He was talking about Bed Bath and Beyond.  He explained that over the past years they have had a very aggressive stock buy-back program.  They’ve almost bought back ½ of their shares.  That said, their eCommerce program was broken.

Normally stock buy-backs are a good thing … right? Stocks usually go up when companies buy back their shares. But in this case, the company today is not competitive with its digital competition. Amazon and even Walmart.com are able to find and take their consumers on-line thru eCommerce. The result … a company that has historically had great same-store-sales has seen their comps go flat and even negative. Same Store Sales are probably the most important KPI for retail. So Bed Bath and Beyond’s market capitalization (i.e. the value of the company) has decreased significantly.

WHY??? What happened? Well, in a recent call with investors, Bed Bath and Beyond’s leadership explained that they are digitally behind. They are not driving their digital sales and conversion, their web sites are antiquated, and they don’t even have mobile enabled sites!

Short term it was easier to buy back stock than invest in systems and capabilities to drive future digital sales. Kramer asked the big question…is it to late for Bed Bath and Beyond?

What are you spending your money on? Are you investing in your future? If you’re not confident you are, give me a call! IBM is a leader in digital AND cognitive technology and how to use them to drive sales and customer engagement. We’re not [just] a technology company, we help bring the future to your business today!
The postings on this site are my own and don’t necessarily represent IBM’s positions, strategies or opinions.

 

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