Daily Archives: September 2, 2022

Bad, Broke And Beyond

Yep, that’s about right…

The well-known, “embattled” upscale retailer Bad, Bath & Beyond has just announced a brutal restructuring. Only seven years ago, this company was trading at or around its all-time high, not far away from $80 a share.

Even after the recent announcement, they kept falling, and are now trading above $8, tumbling more than 5% today alone as I write this. I think there is a zero missing here. Or not. Ouch.

The company was, obviously, hit hard by the “pandemic” as all the retail sector was. However, it was trading at around $35 in the first days of January 2021, a short time before announcing that they would not sell Mike Lindell’s pillows anymore, because “woke”.

This show of virtue has not done them a lot of good. There might, sure, be other issues; but my point is that wokeness in itself is a sign of incompetence, and this incompetence can then translate, in thousand other little ways, into decline.

If I were running a chain of retailers, I would be aware that I am operating in a very hostile environment, and having to face the headwind of the internet distribution with its lower stocking and running costs and its, likely, superior logistics and distribution. Therefore, the last thing I would do would be to antagonise half my clients with political statements, indicating that my clients will only be able to buy the products I consider ideologically sound instead of the products they, actually, want.

The woke management at Bad, Bath & Beyond could, obviously, not think that far. Plus, they insulted their own clients by pretending that the ousting of Lindell was not politically motivated. This is, simply, considering your clients doubly stupid. I think many of their clients noticed it, and drew the consequences.

Now, I do not say that, if you stop selling Lindell’s pillows, you will automatically go bust, or thereabout. There are woke companies who continue to do fine (Target is one example). What I am saying is that it is a dangerous game, which denotes an ideological blindness likely to infect many other aspects of the running of the company. A woke company does not care for its clients. It is also a company that put ideology before sound decision-making. It is not a surprise when such companies flounder.

BBBY as an independent, stock exchange traded entity might, in the next years, do much worse than floundering. It might, actually, die.

Who knows: that day, they might remember Mike Lindell’s My Pillow.

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