Bed, Bath & Beyond . . . and beer?

After buying Cost Plus World Market earlier this year, the home goods seller may be looking to expand alcohol sales.

By Kim Peterson Aug 22, 2012 2:52PM
Bed, Bath & Beyond (BBBY) wants to be store for more than just a towels and other household items. At least one of its locations wants to add beer and wine to the mix.

Alcohol sales might be just what the company needs. It doesn't have any momentum online, and shares fell in June when it disappointed investors with its outlook. Sales growth is slowing, and customers are becoming too reliant on coupons, which is cutting into profitability.

Bed, Bath & Beyond tried to revive business by acquiring Cost Plus World Market in May for about $500 million. Cost Plus World Market has brisk sales of beer and wine, and Bed, Bath & Beyond may want to expand alcohol sales into its other stores.

So far, the company is mum on those plans. The Chicago Tribune reports that one Bed, Bath & Beyond in Schaumburg has applied for the right to sell beer, wine and food. But a company spokeswoman wouldn't say how many other stores already sell alcohol or will apply to do so.

The company is also requesting the right to offer wine and beer tastings at the Schaumburg location, the Tribune reports.

So will beer and wine sales work? Will shoppers go for the new offering, or is the idea of buying a six-pack along with a new comforter just too jarring?

The company reported mixed results for the quarter ended May 26. Its earnings of 89 cents a share beat analyst expectations of 84 cents, but its revenue of $2.22 billion was slightly down from expectations of $2.24 billion.

The real downer was the company's forecast for the current quarter. It expects to earn 97 cents to $1.03 a share, less than the $1.08 analysts expected. Even though the stock tumbled after that forecast, shares have still been on an impressive climb, rising more than 28% in the past year. Shares were up more than 1% Wednesday to $66.91.

You can hear more about the quarterly results in the following video.


Tags: BBBY
22Comments
Aug 22, 2012 5:10PM
avatar

The reason customers are "too reliant on coupons" is because the merchandise is expensive. Until their prices are lowered, my family won't enter the store without coupons in hand.

Aug 22, 2012 6:29PM
avatar
Will I be able to use my 20% off coupon!!!
Aug 22, 2012 5:33PM
avatar

this is the way it should be

 

 

Bed, Bath, Beyond, Beer & Hookers

Aug 22, 2012 6:07PM
avatar
Great! You can taste the beer and wine, then take a nap on one of the display beds!!
Aug 22, 2012 5:10PM
avatar

The reason customers are "too reliant on coupons" is because the merchandise is expensive. Until their prices are lowered, my family won't enter the store without coupons in hand.

Aug 22, 2012 5:58PM
avatar
At Least No One Has To Worry About Driving Home....They Can Just Crash There Haha
Aug 22, 2012 6:39PM
avatar
stupid along with everyones comments
Aug 23, 2012 9:37AM
avatar

Still not going to shop their I'm sure the beer will be overpriced too

 

Aug 23, 2012 10:13AM
avatar
With 2 large warehouse style liquor store near my Mays Landing NJ Location, it would never pay them back. The cost of a Liquor sales License alone  is astronomical in New Jersey.
Aug 22, 2012 5:49PM
avatar

Have been selling food products for almost a year now and beer & wine for a couple months already in the San Diego store.

Aug 22, 2012 5:34PM
avatar

"The company is also requesting the right to offer wine and beer tastings at the Schaumburg location"

Well alright then, where is schaumburg?

Aug 22, 2012 11:11PM
avatar
BB&B is all about $, so why not sell booze? People should be more concerned about how they treat their thousands of employees. They suck.
Aug 22, 2012 5:08PM
avatar
good but it won't happen in Memphis..got to sell food
Aug 22, 2012 5:35PM
avatar
Why sell alcohol? They would overprice it like the rest of their stuff.
Aug 22, 2012 6:39PM
avatar
As if there are not enough places to buy alcohol already.
Aug 22, 2012 8:28PM
avatar
Why do we have to have liquor, beer and wine in BBB?  They can do without enabling those with such unhealthy lifestyles.....  It seems like the availability is out of control..  for what its worth!!!
Aug 22, 2012 6:50PM
avatar
this is just plain sad. Americans are so  addicted to booze they will defend it no matter what. 

People wonder why society  is going to hell.  oh well people also wonder why 1 in 5 Americans have an STD. People to damn drunk to put on a condom.  
Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

105
105 rated 1
271
271 rated 2
420
420 rated 3
633
633 rated 4
492
492 rated 5
532
532 rated 6
725
725 rated 7
515
515 rated 8
343
343 rated 9
140
140 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
UPLULTRA PETROLEUM Corp10
EOGEOG RESOURCES Inc10
SWNSOUTHWESTERN ENERGY COMPANY10
TAT&T Inc9
COPCONOCOPHILLIPS9
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.