American retail giant Bed, Bath & Beyond (BBBY) has seen a significant spike in its stock price, after the firm reported a jump in online sales.
The company had announced on Friday that it saw an 85 percent jump in its digital sales for April to date. As expected, Wall Street reacted in the company’s favor, and it saw a 32 percent surge in its stock price when the market opened on Monday.
Big Gains as BBBY Works on the Back of Digital Sales
While the company’s stock had sold for a high of $5.25 on Friday, it surged to $5.89 per unit on Monday morning. The price has also risen slightly to $6.96 at press time, showing that investor sentiment about the company is still positive.
The New Jersey-based retailer was one of the companies to benefit significantly from the coronavirus pandemic. While the firms still operate their physical stores in the United States and Canada, it proactively made the jump to focus on digital sales when the pandemic broke out.
Most of the company’s physical stores were forced to close, but it went on to convert them into fulfillment centers. This way, it was able to optimize its fulfillment capacity and make deliveries much faster. This should continue up to May 16, as the stores will tentatively remain closed until then.
In the meantime, the firm appears to be sticking to the template that works. In line with its pivot to the digital space, Bed, Bath & Beyond had announced that it will be adding hundreds of new positions to the e-commerce distribution centers across the United States and Canada – a move which will help it to keep pace with increasing demand.
In addition, the firm will expand the number of locations where customers can purchase online and pick their items up, as well as its contactless curbside pick-up service division.
Most of the company’s physical staff – as well as some corporate employees – have been furloughed in the interim, but the firm has committed to pay 100 percent of the healthcare premiums for all enrolled associates. Executives will also take a 30 percent pay cut for as long as the situation lasts.
All Eyes on Seattle
Bed, Bath & Beyond isn’t the only top retailer to be rolling in the cash during this period. Amazon, the largest e-commerce retailer, has been one of the star companies for investors in this period.
The company has witnessed over 40 percent increase in its share price since President Trump announced a ban on travel – a period that marked the beginning of the virus’s stifling effects on businesses.
Amazon has become a lifeline to stuck-at-home people amid the lockdown, and Wall Street analysts reportedly believe that it will see a 25 percent surge in revenue for the quarter compared to the same period in 2019.
The Seattle-based firm is set to announce its earnings on Thursday, and all eyes will be on its figures.