Consumer

Bed Bath & Beyond Bankruptcy Creates $5 Billion Opportunity for Target, Amazon

  • Rivals circle for market-share gains after bankruptcy filing
  • Liquidation sales to weigh on home-goods profits in short term

A Bed Bath & Beyond store in Santa Clara, California. 

Photographer: David Paul Morris/Bloomberg
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Bed Bath & Beyond Inc.’s liquidation plan may weigh on one source of US retail profits in the short term as the market is inundated with liquidated home and baby products — but it leaves a long-term prize of about $5 billion in annual revenue for competitors.

Once deep discounts from Bed Bath & Beyond’s and Buy Buy Baby’s closing sales are over, Target Corp. is a likely beneficiaryBloomberg Terminal, Piper Sandler analyst Edward Yruma said in a note to clients Monday. Target is in line for an eventual boost of about 40 cents a share to annualized earnings, he said. Amazon.com Inc. and Walmart Inc. will also pick up more sales.