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Final Presentation- BSNS Policy

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Adrienne Crowley

on 22 April 2013

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Transcript of Final Presentation- BSNS Policy

Technology Infrastructure Financial Statement Analysis History Cash Flow Analysis Timeline & Major Impacts 1971: Eisenberg & Feinstein establish Bed 'n Bath
1985: Seventeen stores operate in NY, NJ, CT, and CA
1985: First superstore opened.
1987: Company's name changed to Bed Bath & Beyond.
1991: Sales reach $134 Million
1992: The firm goes public.
1994: Electric appliances are added to the store's product offerings.
1999: Sales exceed $1 billion.
2000: The firm grows to 311 in 43 states.
2013- Due to Hurricane Sandy, BB&B gave 20% off to all Sandy victims. Human Resources The Company’s objective is to be the customer’s first choice for products and services in the categories offered, in the markets in which the Company operates. BED BATH & BEYOND Mergers & Acquisitions Bed Bath & Beyond The Company’s strategy is to achieve this objective through excellent customer service, an extensive breadth and depth of assortment, everyday low prices, introduction of new merchandising offerings and development of its infrastructure. To ensure superior customer service to all shoppers while providing products pertinent to each stage of an individual's life. To offer quality merchandise at everyday low prices.
To maintain a wide assortment of merchandise.
To present merchandise in a distinctive manner designed to maximize customer convenience and reinforce customer perception of wide selection.
To emphasize dedication to customer service and satisfaction. Bed Bath & Beyond buys Cost Plus Inc. in an all cash transaction valued at $495 million, $22 per share.
Bed Bath & Beyond buys Linen Holdings, Inc. for approximately $105 million. Warren Eisenberg (Co-Chairman)
Leonard Feinstein (Co-Chairman)
Steven H. Temares (CEO)
Dean S. Adler (CEO of Lubert-Adler Partners
Stanley Barshay (President of Merck & Co.)
Klaus Eppler (Pensioned Partner, Proskauer Rose LLP)
Patrick R. Gaston (President, Western Union Foundation)
Jordan Heller (President, Heller Wealth Advisors, LLC)
Victoria Morrison (Exec. VP & General Counsel, Edison Properties, LLC) Bed Bath & Beyond Location MISSION & VISION OBJECTIVES & STRATEGY MISSION VISION MACY'S TARGET WILLIAMS & SONOMA Macy's Target Williams-Sonoma OBJECTIVES Union, New Jersey Reason for Location: The Company evaluates a number of factors, including the availability of real estate, demographic information (such as data relating to income and education levels, age and occupation) and distribution COMPANY STRATEGY Macy's took a large hit during the financial crisis in 2008, they had a net loss.
Bed Bath & Beyond has had steady net income over the past 4 years.
Target's cash provided by operating activities is significantly higher than the competitors. Cash Flow Analysis Balance Sheet Analysis BOARD OF DIRECTORS ORGANIZATIONAL MAP Bed Bath & Beyond Macy's Stephen F. Bollenbach (Non-Exec. Chairman)
Deirdre P. Connelly (President, North American Pharmaceuticals
Meyer Feldberg (Dean Emeritus, Columbia Business School
Sara Levinson (CEO of ClubMom, Inc.)
Terry L. Lundgren (Chariman, President, CEO of Macy's)
Joseph Neubauer (Chairman, CEO of Aramark)
Joyce M. Roche (CEO of Girls Inc.)
Paul C. Varga (Chairman, CEO Brown-Forman Corp.)
Craig E. Weatherup (Former CEO of Pepsi-Cola)
Marna C. Whittington (Former CEO of Allianz) Target Williams-Sonoma Roxanne S. Austin (President, Austin Investment)
Douglas M. Baker (Chairman, CEO of Ecolab, Inc.
Calvin Darden (Chairman, Darden Development Group)
Henrique DeCastro (CEO, Yahoo! Inc.)
Mary Dillon (President & CEO, US Cellular Corp.)
James Johnson (VP of Perseus, LLC)
Mary Minnick (Partner, Lion Capital LLP)
Anne M. Mulcahy (Chairman of Board of Trustees)
Derica W. Rice (Exec. VP, Global Services)
Gregg Steinhafel (CEO, President of Target)
John G. Stumpf (President, CEO of Wells Fargo)
Soloman Trujillo (Former CEO of Telstra Corp.) Bed Bath & Beyond Macy's Target Williams-Sonoma EMPLOYEES 48,000
Employees 166,000
Employees 361,000 Employees 26,000
Employees Non-Union Non-Union Union Non-Union CORPORATE CULTURE:
Collaborative CORPORATE
Decentralized CORPORATE
Customer first
Shopping experience CORPORATE
Deliver Our goal is to be a retailer with the ability to see opportunity on the horizon and have a clear path for capitalizing on it. To do so, we are moving faster than ever before, employing more technology and concentrating our resources on those elements most important to our core customers. Our mission is to make Target your preferred shopping destination in all channels by delivering outstanding value, continuous innovation and exceptional guest experiences by consistently fulfilling our Expect More. Pay Less.® brand promise The mission of our Williams-Sonoma brand is to be the leader in cooking and entertaining by delivering great product, world class service and engaging content Macy’s, Inc. is a premier national omnichannel retailer with iconic brands that each operate outstanding stores and dynamic online sites. Both Macy’s and Bloomingdale’s are known worldwide, and each has its own unique identity and customer focus. BENEFITS COLLEGE GRADUATE CAREERS:
Executive Development Programs:
Virtual and live training session
On-the-job training
GOAL: to gain a deeper understanding of Macy’s/Bloomingdale’s business, the language, reporting systems and much more – everything you need to know to get you ready to perform. OnBoarding: a personalized training program for new hires to connect team members to Target, their team, and their work.
Training focuses on communication, cultural awareness, and 6Sigma methodologies.
Everything is position-based training. Human Resources responsible for all training programs.
Employees are expected to have full knowledge of the position's expectations following the training process. We provide awareness and training programs for all associates to promote safety.
There is training of skilled store operating personnel, especially management.
Bed Bath & Beyond depends on its employees to execute the business plan, and ultimately, to satisfy its customers.
Therefore, employee training is highly prioritized within the corporation. Bed Bath & Beyond Macy's Target Williams-Sonoma HIRING/TRAINING DIVERSITY & AFFIRMATIVE ACTION Bed Bath & Beyond Macy's Target Williams-Sonoma BENEFIT PLANS EXECUTIVE & DEFERRED COMPENSATION STOCK-BASED COMPENSATION POST-RETIREMENT PLANS TRAINING PROGRAMS SOCIAL RESPONSIBILITY To support our mission, we are guided by our commitments to great value, the community, diversity and the environment. We seek to make lasting quality the signature of our company. To us, what we create is personal, just as it is for our customers. To grow sales
To continue to increase the company’s profitability levels (earnings before interest, taxes, depreciation and amortization) as a percent of sales.
To improve return on invested capital.
To maximize total shareholder return. Education: double education support, improve reading proficiency, increase book donations
Efficient Operations: reduce waste by 15%, reduce greenhouse gases by 10%, increase EnergyStar certifications
Sustainable Products: improve packaging sustainability
Health: Increase health assessments, cancer screenings, and biometric health assessments of all employees/families
Volunteerism: Increase volunteer hours to 700,000/year The company’s “millennial strategy” aims at tapping the young demographics of America, who are trendier and fashion oriented, and by the end of 2013, Macy’s expects to attain a complete makeover. Design for all.
More for your money.
Great guest service.
Celebrate diversity & inclusion.
Legacy of giving & service.
Fun & rewarding place to work. We believe that our company's potential is driven by our associates and their imagination, passion and commitment. Our customers inspire everything we do. We make lasting quality the signature of our company. All of our values support our success as a company. Laura J. Alber (Director, President, and CEO of WS)
Adrian Bellamy (Chariman of the Board, WS)
Charles E. Williams (Founder & Director Emeritus)
Patrick J. Connolly (Director, Exec. VP, CMO of WS)
Julie Whalen (Exec. VP, CFO of WS) We celebrate diversity and believe that our diverse workforce contributes to the strong bond our associates have with our customers.
Employment at any of our companies is based solely on job-related qualifications.
We are also committed to maintaining a working environment completely free from harassment, unlawful discrimination, or intimidation of any kind.
We have policies and procedures in place to prevent such conduct and enable associates to report such conduct so that it can be promptly and fairly addressed. At every level of our company, we recognize the value that different perspectives bring to our business, and we celebrate the unique characteristics and strengths of each associate.
Our goal is for every associated to achieve his or her potential.
We actively address diversity issues and believe diversity in business and multicultural diversity are key to our success and the success of the communities we serve.
We work hard to build strong relationships with key colleges and universities, and we support cultural organizations. At Target, diversity is much more than a goal or campaign.
Diversity is a core value we integrate into every area of our business—from our suppliers, to our teams, to the shopping experience in our stores.
We find diverse team members by participating in and sponsoring conferences and career fairs.
We foster an inclusive culture that allows our high-performing and diverse team to drive innovation.
Our commitment to diversity and inclusion is reflected in the way we engage in the community, through our innovative programs, partnerships, sponsorships and volunteerism. Medical & Dental Benefits
Personal Life
Dependent Care
Flexible Spending Account
Health Care Flexible Spending
Paid Sick Days
Paid Vacation
Paid Personal Days
401(k) Savings Plan
Associate Purchase Discounts Medical/Dental Programs
Live Healthy Wellness Program
Disability income protection
Employee assistance program
Health care FSA
Dependent Care FSA
401(k) Investment Plan
Paid Time Off
Leave of Absence/Leave Sharing
Tuition Assistance
Adoption Assistance
Associate Discount Vacation, national holidays, personal days
10% team member discount
Target credit union
Adoption assistance reimbursment
Daycare FSA
Childcare discount
Life insurance
Disability Insurance
Commuter benefit
Competitive 401(k) Associate discount
Paid vactions/holidays
Health/life/travel insurance
Short/Long-term disability programs
Health Care FSA
Dependent Care FSA
Tax-free commuter benefits
Medical/family/bereavement leave
Employee assistance program
Same-sex domestic partner benefits
401(k) investment plan Bed Bath & Beyond Macy's Target Williams-Sonoma The Company has a nonqualified deferred compensation plan (“NQDC”) for the benefit of employees defined by the Internal Revenue Service as highly compensated. A certain percentage of an employee’s contributions may be matched by the Company, subject to certain Plan limitations. This match will vest over a specified period of time. Macy’s provides the opportunity for executives to defer compensation through the Executive Deferred Compensation Plan, referred to as the EDCP. Under the EDCP, eligible executives may elect to defer a portion of their compensation each year as either stock credits or cash credits. Stock credit accounts reflect common stock equivalents and dividend equivalents. The purpose of the deferred compensation plan is to provide certain supplemental retirement income benefits to a select group of management or highly compensated employees of the Company and its affiliates who have been selected for participation in the Plan. The present value of all payments expected to be made to participants and their spouses (or beneficiaries) based on the most recent calculation of the value of participants’ plan account balances (the “plan valuation”). COMMUNITY:
Good360, HealthyWomen, Head Injury Association, National Fish & Wildlife Association

Product health & safety, careful vendor choices, product testing, assortment offerings

Customer privacy, sustainable paper procurement policy, sustainable paper defined, recycled content.

Growth, diversity, mutual respect, intellectual honesty, safe work environment, advancement opportunities

Bed Bath & Beyond is committed to sourcing quality merchandise and developing meaningful relationships with our vendors who share common principles of social responsibility. B



A 401(k) Savings Plan 401(k) Savings Plan 401(k) Savings Plan Balance Sheet Analysis A LEGACY OF GIVING & SERVICE:
Our team members give hundreds of thousands of hours volunteering in their communities every year.

In order to build the communities we want for our team members and guests, we work closely with partners and organizations.

We’re devoted to helping our more than 365,000 team members throughout the world live well and achieve their goals, knowing that their diverse perspectives, talents and commitment make both our company and our communities the best they can be. Sales & Marketing As Target continues to grow, so does the work in communities. Bed Bath & Beyond's cash used for investing & financing activities are very similar to Williams-Sonoma from 2008 through 2011.
Target is very volatile; using significantly more cash for investing activities in 2008 and 2011, and using significantly more cash for financing activities in 2010. Sales Volume Gross to Net Comparison Retail v. Internet Sales VENDOR & SUPPLIER CODE OF CONDUCT:
All of the company’s vendors are required to agree in writing to comply with the company’s Code of Conduct.

Several exclusive merchandising initiatives at Macy’s involve products with a focus on international social responsibility (Macy's Path to Peace, Macy's Heart to Haiti, GoodWeave Rugs)

All Macy’s suppliers agree to adhere to the Macy’s Vendor and Supplier Code of Conduct, which includes language strictly prohibiting human trafficking and slavery.

Macy’s commitment to addressing human trafficking and slavery in the supply chain is illustrated by our relationship with GoodWeave™ Rugs. Global & Domestic Core Products Residential & Industrial Sales The current and non-current assets of all the companies have held steady from 2009 through 2012.
Bed Bath & Beyond's current and non-current assets almost parallel Williams-Sonoma.
Target has significantly more current and non-current assets than the other companies. Customer Base Demographics CRM Method Distribution & Logistics Distribution & Logistics
Continued Enterprise Management PEOPLE FIRST:
We believe that our company has limitless potential, driven by our associates and their imagination, passion and commitment. We work to create an environment that attracts great talent, and we seek to motivate, inspire and recognize high performance.

Our customers inspire everything we do. They provide us with many of our best ideas, and we see their trust as something we need to earn every day. Answering their needs is about more than business for us; it's a calling. Without our customers, nothing else matters.

We seek to make lasting quality the signature of our company. To us, what we create is personal, just as it is for our customers. We take pride in the quality not only of our products but our relationships with our associates, business partners, customers and the community.

All of our values support our success as a company. It is a collective responsibility, and we believe that who we are as a company is fundamental to our ability to thrive and continue to grow. Bed Bath & Beyond is again very similar to Williams-Sonoma; their current and non-current liabilities are almost parallel.
Target is again the most volatile; their current liabilities significantly increasing in 2012 and their non-current liabilities having a steady decrease in 2011 and 2012. Incentive Programs Balance Sheet Analysis BED BATH & BEYOND MACY'S TARGET WILLIAMS-
SONOMA Bed Bath & Beyond's total liabilities are so low because they operate with no debt on their balance sheet, and few liabilities. Product Introduction Legal Issues Balance Sheet Analysis Bed Bath & Beyond does not have their own brands of merchandise.
Products include name brands and private brands.
2 Main Categories of Goods:
Domestic (bed linens, bathroom and kitchen items)
Home Furnishing (cookware and cutlery, small household appliances, picture frames, and more)
Bed Bath & Beyond is also associated with Christmas Tree Shop, BuyBuyBaby, and Face Value Stockholder's Equity for all the companies remained relatively the same from 2009 through 2012.
Bed Bath & Beyond had a slight increase in retained earnings in 2011 and 2012.
Macy's had a drop in retained earnings in 2012. LTI Provides for Grants of: Incentive stock options
Nonqualified stock options
Stock-settled stock appreciation rights
Restricted stock awards
Deferred stock awards
Dividend equivalents Design Patent Infringement
BB&B were showed a product called Tote Towel. They left the product on pending and decided to mass produce its own version of the product.
Lawsuit over the collection of consumer ZIP codes Stock Options
Stock Credits
Restricted Stock Awards
Exercisable & Unexercisable LTI Provides for Grants of: Stock options
Stock appreciation rights
Performance share units
Restricted stock units
Restricted stock awards
Combination of awards LTI Provides for Grants of: Incentive Compensation Plan Provides for: Timeline/Major Impacts Stock Options
Restricted stock awards
Stock appreciation rights
Performance awards (including cash awards) Awards of stock options and restricted stock generally vest in five equal annual installments beginning one to three years from the date of grant. COMPETITION 1858: New York retailer Rowland Hussey Macy opens his first store on the corner of 14th Street and 6th Avenue. From the beginning, Macy's iconic red star is in the logo.

1924: The Herald Square store expands to 1 million square feet and is promoted as the "World's Largest Store." The store has its first Thanksgiving Day Parade.

1994: Federated Department Stores Inc. acquires R.H. Macy & Co. and becomes the world's largest department store company, with 400 stores.

2007: Federated changes its name to Macy's Inc. 1962: The first Target opens in Roseville , Minnesota.

1979: Target celebrates achieving $1 billion in annual sales

2000: Dayton-Hudson corporation is now named Target Corporation

2001: Target opens its 1,000 store.

2011: Target announces plans to branch out into Canada in the near future. 1947: Chuck Williams moves to Sonoma, CA.

1956: Chuck Williams opens first Williams-Sonoma store in Sonoma,CA.

1972: Williams-Sonoma is incorporated.

1983: Williams-Sonoma, Inc. goes public on the NASDAQ under the symbol WSGC.

1986: 21 Pottery Barn stores are purchased.

2000: First Pottery Barn Kids store opens in Costa Mesa, CA (In Thousands) Bed Bath & Beyond Sells large variety of Domestic Merchandise & Home furnishings
Domestic Merchandise includes bed linens and related items, bath items and kitchen textiles.
Home furnishings include categories such as kitchen and tabletop items, fine tabletop, basic housewares, general home furnishings, consumables and certain juvenile products.
Harmon: Beauty Supplies Macy's Target Williams-Sonoma Sells a wide range of merchandise, including apparel and accessories, cosmetics, home furnishings and other consumer goods. Sells Mainly:
Household essentials includes pharmacy, beauty, personal care, baby care, cleaning and paper products.Hardlines includes electronics (including video game hardware and software), music, movies, books, computer software, sporting goods and toys.
Apparel and accessories includes apparel for women, men, boys, girls, toddlers, infants and newborns. It also includes intimate apparel, jewelry, accessories and shoes.
Home furnishings and décor includes furniture, lighting, kitchenware, small appliances, home décor, bed and bath, home improvement, automotive and seasonal merchandise such as patio furniture and holiday décor.Food and pet supplies includes dry grocery, dairy, frozen food, beverages, candy, snacks, deli, bakery, meat, produce and pet supplies Sells large
Variety of cooking & entertainment essentials
Home furniture designed for children, teen, adult
Lighting & high end cabinet doors Advertising Cost Ratio Bed Bath & Beyond
Advertising Methods Word of Mouth Advertising Its reputation for offering a wide assortment of quality merchandise at everyday low prices Paid Advertising Full-color circulars & other advertising pieces distributed via direct mail or inserts, as well as digital media
Coupons Macy's Target Williams-Sonoma Weekly Newspaper ads
Digital Media
Parade Newspaper circulars
Digital Media
Sponsor Racecar Direct-to-customer-helps to build brand awareness
Digital Media Bed Bath & Beyond: http://www.bedbathandbeyond.com
http://store.facevaluesonline.com Revenue for all the companies held steady from 2008 through 2011.
Cost of Goods Sold also held steady.
Target had a slight increase in COGS and Revenue in 2011. Bed Bath & Beyond Does not distinguish between online sales and sales in stores Macy's http://www.macys.com
http://www.bloomingdales.com No defined internet sales given, but has grown 39.6% between 2010-2011 Target http://www.target.com Income Statement Analysis William-Sonoma Income Statement Analysis Ratio Analysis Liquidity Ratios Profitability Ratios Efficiency Ratios Growth Ratios Competition http://www.williams-sonoma.com
http://www.cultivate.com Suppliers & Outsourcing Bed Bath & Beyond's income before taxes rose slightly from 2008 through 2011.
Macy's had a significant increase in income before taxes in 2009 and a significant decrease in total operating expenses in 2009.
In 2008 Macy's had a $5 million impairment expense. Does not distinguish between online sales and sales in stores Product Introductions The internet Sales and catalog sales account for 43.9% of their sales Liquidity is the measure of the ability of a debtor to pay their debts when they fall due. Ratios that are typically used to analyze how well a company uses its assets and liabilities internally. Ratios used to assess a business's ability to generate earnings as compared to its expenses and other relevant costs Merchandising largely displayed in store (additional stored in back of the store), in specialty sections
Majority of Merchandise is shipped directly from vendors through 3rd party or service provider
Remainder of Merchandise shipped through distribution center Target works in close partnership with suppliers around the world. Target is committed to supplier diversity because they believe it's good business. While every business unit at Target has specific needs and requirements, we look for certified diverse suppliers who: Provide innovative goods
Provide competitively priced goods
Provide competitively priced services
Foster community development
Encourage economic development
Enhance Target's ability to deliver shareholder value Macy's Target Target is an international company with more than Williams-Sonoma 365,000 team members around the world. OUTSOURCING SUPPLIERS Some of the departments Target outsources to its global headquarters include: total liabilities/net income SUPPLIERS OUTSOURCING SUPPLIERS OUTSOURCING current assets/current liabilities SUPPLIERS Macy's has a very high debt to income ratio in 2009, meaning that there is a very large burden on them to make their debt payments. OUTSOURCING Has their own distribution subsidiary, which they fully own called Macy's Logistic Value Chain Analysis 15 Distribution Centers BED BATH & BEYOND MACY'S TARGET Bed Bath & Beyond has the highest current ratio overall, meaning that they have a more than sufficient amount of current assets to cover their current liabilities. WILLIAMS-SONOMA SWOT ANALYSIS (sales-cogs)/net sales net profit after taxes/net sales Mergers & Acquisitions A large portion of our merchandise is sourced, directly or indirectly, from outside the United States, with China as our single largest source
General merchandise is shipped to and from our distribution centers by common carriers. Macy's net profit margin took a huge hit in 2008 due to a $5 million impairment expense which lead to a net loss.
Bed Bath & Beyond had the highest net profit margin. Competitive Advantage & Differentiators 40 Distribution Centers All the gross profit margins of the companies are very similar.
Bed Bath & Beyond's gross profit margin is slightly higher than the rest of the companies. NEAREST COMPETITORS Large portion of sales in direct-to-customer sales
Majority of Merchandise is shipped directly from vendors through 3rd party or service provider Both foreign & domestic manufacturers and importers. purchases in fiscal 2011 were foreign-sourced from vendors in 50 countries. 61% of merchandise Bed Bath & Beyond believes that most merchandise, other than brand name goods, is available from a variety of sources and that most brand name goods can be replaced with comparable merchandise. We outsource certain aspects of our business to third party vendors. Payroll processing
Various information technology
Distribution center services We often outsource: Recently have pushed insourcing within the company... Infrastructure technology
Furniture manufacturing
Furniture delivery to customers
Management of international vendors In fiscal 2011, the Company purchased its merchandise from approximately 5,600 suppliers. The Company purchases substantially ALL OF ITS MERCHANDISE all of its merchandise in the United States. VENDORS ARE MAINLY LOCATED IN ASIA & EUROPE. (Approximately 97% were negotiated and paid for in U.S. dollars). CHINA IS SINGLE LARGEST SOURCE. Macy's is committed to growing our purchase of goods and services from vendors who are certified as minority or woman-owned. Macy's purchases goods and services from suppliers in two primary categories: Resale (supplying fashion merchandise to Macy's stores for resale)
Non-resale goods and services (such as operating supplies and equipment and general services). MACY'S ENCOURAGES PROSPECTIVE SUPPLIERS TO BECOME A PART OF ITS SUPPLIER DIVERSITY PROGRAM. Telephony
Web reporting services
Customer service
Manufacturing Some departments Macy's often outsources include: Demographic Summary The company is the most efficient in its industry, which is why it is so much more profitable than its competitors. Much higher operating margin than its competitors (despite similar gross margins). DIFFERENTIATORS: DIFFERENTIATORS: Innovative marketing efforts
Recognizable spokes "person"
Great guest experience
Celebrity promotions
Top name designers (upscale discounting)
No solicitation policy
Donations to education organizations DIFFERENTIATORS: DIFFERENTIATORS: Target provides a more pleasant shopping experience than its competitors while creating a good product value for their customers. Target truly fulfills its promise of "Expect More, Pay Less" by selling high quality, upscale products at a low cost to the consumer. Produce very upscale brands
The extensive store network helps it cater to a varied consumer needs and segments and create product awareness and loyalty.
Tailor to a high-class consumer, which differs from majority of competition. Frequent utilization of coupons & discounts
Extremely environmentally friendly
Strong management & friendly customer associate guarantee Macy's tailors its merchandise assortment and shopping experience in every store location for the specific customer who shops there. Diverse supplier base
Well-trained employees
Extremely varied products specific to the demographics of each geographical location
Frequently utilize celebrity endorsement (Donald Trump, Justin Timberlake, Martha Stewart) to promote advertisements
Target to a diverse demographic giving a larger customer base Macy's has a priority of attracting, retaining and growing the most talented people in the retail industry. Williams-Sonoma's strong brand portfolio, focused on various demographic segments and varied customer needs. Net Profit Margin measures how much after tax profits are generated by each dollar of sales. Gross Profit Margin measures the total margin available to cover other expenses beyond COGS and still yield a profit. Balance Sheet Analysis Working Capital indicates whether a company has enough short term assets to cover its short term debt. Bed Bath & Beyond's working capital has been increasing from 2008 through 2012.
Target's working capital significantly decreased in 2012. Return on Assets ratio measures how efficient management is at using its assets to generate earnings. net income/total assets Bed Bath & Beyond's ROA has been steadily increasing from 2008 through 2011.
Macy's ROA was negative in 2008 due to their net loss. Distribution centers are outsourced
Majority of products are private label- go through intense testing program to ensure quality when outsourced Asset turnover measures how much of sales are generated by each dollar of assets. sales/total assets All of the companies had a similar asset turnover.
Williams-Sonoma and Bed Bath & Beyond were slightly higher than the others. Acquired Pottery Barn in 1986

Acquired West Elm in 2003

Acquired Rejuvenation in 2011 Macy’s acquires Davison-Paxon
of Atlanta in 1925

Federated Department Stores, Inc. is formed as a holding company in 1929

Macy's East merges with A&S Jordan/Marsh to form a division of Federated in 1994

Federated begins operating nationwide under two store nameplates- Macy's and Bloomingdale's The price to earnings growth (PEG) ratio is used to determine a stock's value while taking the company's earnings growth into account, and is considered to provide a more complete picture than the P/E ratio. Williams-Sonoma has the most volatile p/e growth rate while Bed Bath & Beyond and Target have remained somewhat steady.
All of the companies had a decrease in 2009. Net-income growth gives a good picture of the rate at which companies have grown their profits. Macy's and Williams-Sonoma have had volatile net income growth from 2008 through 2011, with Macy's plummeting in 2009.
Bed Bath & Beyond has been slightly increasing The large number of brands they host create a larger clientele base, increase profitability, and allow more room for growth. Distribution services
Consumer support
Geographical development Stock Analysis Stock History Dayton merges with the Detroit based J.L. Hudson Company Department Store in 1969

Dayton Hudson acquires the California based Mervyn's of Department Stores in 1978

Marshall Field & Company is acquired 5 Distribution Centers To continue to grow sales in each of our existing brands through innovative product introductions and compelling marketing
To invest in the competitive strengths of our multi-channel business
To invest in our supply chain to ensure that we have the highest service levels in the industry
To leverage our customer insights to fill white space by developing new businesses within and outside of our current framework of brands; to answer the worldwide demand for our products by expanding the global presence of our brands
To invest in the technologies that underlie all of these strategies in order to make it easy for our customers to decorate, entertain and cook at home. Growth Comparison since BBBY's IPO Equal Employment Policy incorporates the Company's commitment to maintain an environment free of discrimination.
All associates and candidates for employment will be provided equal employment opportunities.
Individuals will be recruited, hired, assigned, promoted, compensated and trained on the basis of their qualifications for the job, and without regard to: race
national origin
veteran status sexual orientation
genetic information
marital or familial status
gender identity or expression
political affiliation Legal Issues PART-TIME CAREERS:
On-the-job training program
Highly prioritize customer service
Corporate policies and standards are also identified Helps you save for retirement, with the opportunity for tax savings.
If eligible, employees can invest from 1% to 50% of your eligible pay with the choice of pre-tax, after-tax, or Roth 401(k) planned payroll deductions.
The plan also includes an annual match from Macy's on a portion of pre-tax savings. Previous Yr Adverting Costs 401(k) Savings Plan Percent Change W-S 401(k) plan now permits eligible employees to make salary deferral contributions up to 75% of their eligible compensation each pay period.
Employees designate the funds in which their contributions are invested.
Each participant may choose to have his or her salary deferral contributions and earnings thereon invested. For every dollar team members deposit, up to 5% of their pay, Target matches it dollar-for-dollar and the match they receive is always theirs to keep.
A variety of low-expense investment funds allow team members to create a personalized plan just right for their age and retirement goals. Stock Analysis Stewardship Social Media P
L Bed Bath & Beyond does not distribute dividends.
Macy's had no dividend payout ratio in 2009 because their EPS was negative; their EPS was negative due to their net loss.
Williams-Sonoma's dividend payout ratio skyrocketed in 2009 which indicates that a large portion of their profits was paid out in dividends. Store Layout Bed Bath & Beyond Macy's Target Williams-Sonoma Majority of sales are to retail consumers
Do have a department where they offer corporations a discount for bulk sales Majority of sales are to retail consumers
Offer a department for hospitality & business furnishings
10% off merchandise, need a $2,500 initial purchase from corporation to set up account Majority of sales are to retail consumers
Have a division for corporate sales which offer multiple rewards including: Changes in federal/local laws
2008: unsafe clothes
2010: misleading about jewelry Hazardous waste lawsuit ($22.5 million)
Ongoing investigation of violations of Clean Air Act Providing zip codes with credit card numbers for unlawful solicitation Do not sell wholesale.
No particular deals to corporations who order from them Adrienne Crowley, Jaime Fitzpatrick, Kimberly Kelly, Priya Sait RESEARCH & DEVELOPMENT FIRST MOVER STATUS Bed Bath & Beyond Target Macy's Williams-Sonoma Inbound
Logistics Operations Outbound
Logistics Marketing
Sales RFID (Radio-frequency identification), monitors inventory Services Inbound
Logistics Operations Outbound
Logistics Marketing
Sales Services Bed Bath & Beyond Target Macy's Inbound
Logistics Operations Williams-Sonoma Outbound
Logistics Marketing
Sales Services Inbound
Logistics Operations Outbound
Logistics Marketing
Sales Services 12 supp. storage locations
3 central distribution centers Floor layout plan
New brand products:
UP& PFresh Quality at low price
Wide selection
Customer convenience
Distinctive presentation Goals: 1,173 stores
Continuous review of strategic acquisition
Partner in joint venture "Home & More" out of Mexico City Develop 3.7 billion $ in private brand including fashion R&D "Word of mouth" advertising
Direct mail /circulars
Advertising costs expensed over the period
$19.5 million Teaming up with other companies like Strassburger Steaks on their online butcher shop Strong customer service approach
Everyday low price establishes reputation 840 stores
Macy's logistics is responsible for distribution Spends no money on traditional R&D
Pop Up Stores
How to best target customer & keeping customers throughout their phases of life Many suppliers
No long-term purchase commitments
20 distribution centers Maximizing localization initiative
Driving omnichannel business
Embracing customer centricity Key Strategies Uses Catalyst inventory system to monitor inventory Inventory system implemented in 2008, increased advantages in the distribution system http://www.quantcast.com Debt to Income Ratio gives an indication of the sustainability of the debt load of the business. Current Ratio measures how much of current assets are available to cover each dollar of current liabilities. Stewardship is the ethical responsibility of the company to plan and manage their resources. Would we purchase the stock? Pros Cons With strong sales productivity and innovative merchandising, Bed Bath & Beyond possesses one of the most capital-efficient models in retailing.
Less discretionary categories such as linens, towels, cookware, and small appliances offer some resiliency from the slumping housing market.
The firm has sizable international growth opportunities. (First store in Canada in 2007 and first store in Mexico in 2008).
BBBY posted positive revenue growth while delivering solid returns on invested capital, during the downturn of the housing market.
Bed Bath & Beyond will continue to take market share, based on its scale and differentiated operating model. BBBY needs to combat against "show-rooming".
The U.S. housing market remains volatile, implying that demand for home-related products could remain weak in the near term.
The home furnishing category is highly competitive, with discounters, department stores, specialty retailers, and direct merchants all vying for market share.
A disjointed housing recovery could stunt top-line growth, since new homeowners represent a large portion of home-related purchases.
It could take several years for the U.S. economy to normalize amid a lackluster recovery.
BBBY does not pay our dividends to its shareholders. We WOULD buy the Stock. We believe that the stock has the potential in the future to be very profitable.

BBBY persevered through the financial crisis with positive revenue growth while other companies were hit very hard.

Consumers will always need products for their homes.

In our opinion, the pros outweigh the cons, and we would purchase BBBY stock. Currently Trading at: (as of April 10, 2013) Offer superior selections
Premier locations
Exciting shopping environment FDS Bank provides credit processing, collections, customer service, and credit marketing services Strong supply chain
International sourcing operations have 27 office locations
Replenishment management system Fully integrated online business
Target REDCard contributes to operations results 1,750 stores
37 distribution centers
4 food distribution centers
Target.com has individual distribution network Marketing programs & shopping experiences specifically to the customer
Macy's Merchandising Group- private label brands Credit Card Services delivers products that drive sales Numerous foreign/ domestic suppliers Direct-to-customer segment has 7 sections
Pottery Barn is major source of revenue
Builds brand awareness Distribution centers in 8 separate locations Catalog circulation
Internet advertising
Multi-channel positioning
All directed towards driving sales Five merchandising concepts
Core brand services are Pottery Barn, PB Kids, and Williams-Sonoma Market Share In comparison with only the four industries, all WSM & BBBY sales. 18% of Target Gross Sales (Home Furnishing) and 15% Macy's Gross Sales (Home/Other) Target Williams-Sonoma Bed Bath & Beyond Macy's College: Pack & Hold
Freshgrad.com Upscale discounting Biggest Promotions
Uses of Celebrities in advertising Branding in specialty stores to different audiences, children/teen/adult A
S Race Track Layout

Good Space Management

"Top-Stock" current assets-current liabilities Ratios that measure how fast a company is growing. Pack & Hold-for college students, they can get school requirement information, send student around with merchandise gun, and use gun will have inventory stored in store near their school Bed Bath & Beyond Planning: Conservative approach to planning
Leadership: Answers to Board of Directors
Messrs. Eisenberg, Feinstein and Temares function together as the senior leaders of the Company
Organization: Answers to committees
Family type feel Williams-Sonoma Using SAS Enterprise Miner, easily combined demographic data on the teenage market with traditional Pottery Barn sales data to create an original mailing strategy for the Pottery Barn Teen catalog. Target "Central to our management philosophy was the belief that our business could benefit communities, and that strong, healthy communities would be essential to lasting business success" -Gregg Steinhafel, CEO Macy's Aggressive implementation of the company’s customer-centric strategies by a talented, experienced organization will provide Macy’s, Inc.’s department stores with an important competitive edge. Demographic Employees are eligible to contribute after 1 year of employment
Could not reveal match rate, but extremely competitive
After a certain period of time, employees eligible for time restricted shares of equity in the company. https://freshgrad.com/ American Rag
Material Girl
Marilyn Monroe Archer Farms
Market Pantry
Converse One Star
Mossimo Pottery Barn
Pottery Barn Kids
West Elm
Mark and Graham http://www.reuters.com/article/2011/02/11/us-williamssonoma-idUSTRE71A0BW20110211
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