Reviewing the Retail Plot Lines of 2023

The HomePage News team has been busy the past couple of weeks compiling and featuring special year-in-review galleries showcasing many of the new products across home and housewares covered by HomePageNews.com the past year.   

The special year-in-review series concludes with a comprehensive, month-by-month recap of the key retail developments for the industry throughout 2023.

From the start, uncertainty was a hallmark of 2024. Inflation, supply chain worries, and the threat of recession hung over the economy, yet troubling didn’t necessarily mean disaster for retailers.

Of course, that wasn’t always the case, with one of the main retail dramas of the year, the bankruptcy and liquidation of Bed Bath & Beyond, and then the resurrection of its retail banner by Overstock. This circumstance resulted in the creation of a new company, Beyond. The drama wasn’t over. Hedge fund JAT Capital Investment, a major investor unhappy about Overstock’s direction, pushed for the removal of CEO Jonathan Johnson, which the company announced on the day the corporate identity and name shifted to Beyond. JAT’s preferred CEO candidate Marcus Lemonis, chairman and CEO of Camping World, an RV and outdoor retailer and affinity group, didn’t take the CEO job but was named co-chair with Allison Abraham, who had been sole chair of the board. The company announced Abraham’s retirement shortly thereafter, leaving Lemonis the sole chair. In an online presentation led by Lemonis, Beyond outlined its objectives, which include cutting expenses, improving communications, potentially divesting or eliminating non-performing assets and providing more value to customers.

As the year closed, a new potential drama emerged in the form of a Wall Street Journal report that Arkhouse Management and the Brigade Capital Investor Group had made a $5.8 billion offer to purchase Macy’s at a time when it is going through leadership change with CEO Jeff Gennette retiring and former Bloomingdale’s CEO Tony Springs stepping into the parent company’s chief executive slot.

Although not as dramatic a development, maybe even more substantial, Walmart made major investments in technology across the operation, including distribution, fulfillment, operations and consumer outreach functions, where the company expanded efforts in everything from live streaming to the metaverse.

In an anticipated drama that didn’t turn out to be as sensational as widely anticipated, the United States Federal Trade Commission and multiple state attorneys sued Amazon on antitrust grounds but launched a relatively narrow action against the retailer, targeting specific practices that included several Amazon insisted it had ended before the suit was launched rather than pursuing a breakup of the company.

Leadership changed at Kohl’s Corp, under pressure from activist investor Macellum Advisors and its new CEO, and former Burlington chief exec Tom Kingsbury began to bring in new senior managers. At the same time, it reversed a policy initiated by former chief executive Michelle Gass and reemphasized the home side of the company’s business. Target dealt with the ramifications of a product mix that was heavier in discretionary merchandise than turned out to be best in the current economy and lighter in food and everyday needs, which pressured its financials.

Offpricers kept on recovering from a pandemic period that closed a tremendous proportion of their stores. Ross Stores kept opening locations, and TJX gained momentum, with HomeGoods, which had been hit by consumer spending shifts, returning to positive comparable store sales in the second half of the year, even if the parent company took away its e-commerce operation. Burlington Stores had a solid year and became a big purchaser of Bed Bath & Beyond leases after that company’s demise.

Dollar stores faltered a bit as leadership changes shook up the two major players, Dollar General and Family Dollar, which saw seasoned executives Todd Vasos and Rick Dreiling return to the helm after some internal turmoil in each case. For its part, the chain drug sector also saw leadership shakeups and the bankruptcy of Rite Aid Corp. At the same time, the major players continue to negotiate the change undertaken as they shift from a retail to a health services orientation. This process has been underway for the past couple of decades but continues to play out.

For their part, warehouse clubs had another pretty good year despite the occasional business lull, with Costco Warehouse Club getting ready for another planned leadership change. Sam’s Club actually had one, as its CEO Kath McLay became chief executive of Walmart International, and Chris Nicholas, Walmart U.S. COO, took her slot. Then, BJ’s Wholesale Club kept growing as it pushed beyond its long-time East Coast market area through the Midwest and South.

Even as the year ended, the unsettling effects on the marketplace kicked off by the pandemic continued to prompt retail changes, including in the holidays. Early financial evidence from the 2023 season suggests that retailers have been depending less on deep discounts in the holiday season and more on value-added services, memberships, rewards and inexpensive gift items to win sales from consumers who have, in general, seen wages rise but also experienced the effects of inflation and the increases in interest rates that the Federal Reserve has used to tame price increases.

As is the case every year, not every retailer survived. Besides Bed, Bath & Beyond and sibling buybuy Baby, Tuesday Morning and Christmas Tree Shops shuttered their stores for the last time and Zulily said goodbye to the Internet.

January

As the year began, Bed Bath & Beyond was already warning that it might not be able to continue operating as its liquidity dried up. Macy’s began ramping up a recently developed small store strategy, launching Bloomies, a slimmed-down version of Bloomingdale’s, in Seattle, the banner’s first appearance on the West Coast after its initial launch in Fairfax, VA. Later, Rite Aid announced the departure of Heyward Donigan, president, CEO, and a board member, as well as the appointment of Elizabeth “Busy” Burr as interim CEO. In a market where consumers were rethinking discretionary spending, Wayfair announced that it was cutting 10% of its global workforce to reduce costs and reinvigorate the bottom line.

After participating in a buyout of the company, former Dollar General honcho Rick Dreiling, already chairman, took on the CEO role at Dollar Tree, with former chief executive Mike Witynski departing. Just after, Dollar General announced the debut of its 19,000th store. Bed Bath & Beyond’s stumbles continued as it defaulted on debt and determined to close its Harmon business, which focused on health and beauty aids.

February

Kohl’s board unanimously appointed Tom Kingsbury CEO, the company reported, while reaching an agreement with activist investor Macellum Advisors, which had pressed the company for executive change. Amazon started February on a shaky note, with a reconsideration of its fulfillment network expansion and its Amazon Fresh grocery format, even as it posted a fourth-quarter net income decline. Still, not long after came the news that the retailer Martha Stewart came to terms with a The World of Martha shop that would operate on the Amazon marketplace. Stewart later announced that she had developed a line of cookware for Sur la Table. Not long after, Bed Bath & Beyond announced that it would liquidate its Canadian operation, and Tuesday Morning filed for Chapter 11 bankruptcy protection for a second time. However, Sur La Table, after a bout in bankruptcy, announced that it would add stores in 2023. By mid-month, Boscov’s had announced the opening of its first West Virginia store.

Walmart posted substantial year-over-year gains in the fourth quarter as well as a Wall Street beat, and CEO Doug McMillon said the company would put additional effort into boosting discretionary categories in its stores, including home. TJX had a pretty good Q4 as well, surpassing a billion dollars in profits for the first time. Overstock turned to a fourth net loss from continuing operations as it continued to establish itself as a home-only etailer. Rent-A-Center changed its name to Upbound Group. To keep itself from lagging in regards to delivery, Target announced a $100 million investment in expanding its supply chain sortation network to more than 15 facilities by the end of 2026. Kohl’s announced the appointment of  Dave Alves to the president and COO roles, reporting to company CEO Tom Kingsbury.

March

Home Depot named William “Billy” Bastek, executive vp of merchandising. As it reconfigured operations and fulfillment capabilities, Amazon announced it was eliminating 9,000 jobs after cutting 18,000 earlier. Tony Spring, then Macy’s executive vice president and Bloomingdale’s chairman and CEO, became Macy’s president and CEO-elect as Jeff Gennette approached retirement.

April

Kirkland’s announced that president and CEO Woody Woodward would retire with board member Ann Joyce appointed interim CEO  and Amy Sullivan, the company’s senior vp and chief merchandising and stores officer promoted to the role of president and COO. Sam’s Club is marking its 40th birthday in the month with activations that celebrate membership, including in-club events. As it continues to add new locations, Nordstrom debuted a new modular Rack logo in a rebranding bid to suit its savvy customer base better, as the company explained it. Charles Redfield left his post as executive vp and chief merchandising officer, Walmart, but the company didn’t immediately name a successor. At Home launched a new private brand, Found & Fable. JCPenney has appointed Katie Mullen, chief customer officer and Dollar General promoted Kelly Dilts to executive vp and chief financial officer.

Even as it tried any number of financing plans to keep the company alive, by late April, Bed Bath & Beyond was ready to throw in the towel, announcing that it had filed for Chapter 11 bankruptcy protection and alerted the court that it was ready to implement an orderly wind-down of its businesses. Liquidation operator Hilco Merchant Resources has won an auction for the assets of Tuesday Morning after the company filed for Chapter 11 bankruptcy in February.

May

As Asian retailers grow in the U.S. value section, Miniso prepared to open a new flagship store in New York City’s Times Square. Wayfair rolled out its Digital Design Studio, a patent-pending technology developed to bring online and in-store shopping into closer alignment. BJ’s Wholesale Club Holdings appointed president and CEO Bob Eddy to the additional position of board chairman. In just one example of the collaborations it launched under its several banners during the year, Williams-Sonoma introduced a new group of home products affiliated with Ayesha Curry, then, later in the month, it rolled out GreenRow, a new own brand focused on using sustainable materials and manufacturing practices to create heirloom-quality products.

As it continued to push growth, including with its first store in Mexico, Dollar General announced a build out of its support network with distribution centers in Blair, NE, Newnan, GA, and Fort Worth, TX, as well as expansion of existing facilities in Jonesville, SC, and Amsterdam, NY. Christmas Tree Shops filed for Chapter 11 bankruptcy protection. Walmart opened its first high-tech Market Fulfillment Center in Bentonville, AK, as part of a strategic initiative focused on expanding the use of its stores as distribution centers. Qurate Retail Group sold its  Zulily business to the Investment firm Regent as part of the parent company’s larger revitalization initiative. At Home named former Walmart exec Jeff Evans president and chief merchandising officer.

June

Newegg launched what it dubbed Home Showcase, an AI-powered online landing page and guide to household products curated as a graphic virtual house where consumers click on rooms to get an appropriate product selection. Qurate Retail, in continuing to expand streaming initiatives, announced another deal that would give it access to new audiences, this with Vizio. Restoration Hardware opened its first store in England in the Historic Aynho Park landmark estate. Bed Bath & Beyond selected Overstock as the stalking horse bidder for its key intellectual assets at a proposed price of $21.5 million. Overstock won those assets later in the month. The Pacific Maritime Association and the International Longshore and Warehouse Union announced that they had reached a tentative agreement on a six-year contract covering workers at all 29 U.S. West Coast ports, averting a strike that loomed over retail with the threat of disrupting the international supply chain just as holiday-season shipping ramped up. Dollar General completed its expansion across the continental United States by entering its 48th state, Montana.

Even before an antitrust filing, the Federal Trade Commission took action against Amazon, claiming that the company tricked people into signing up for its Prime membership program and then made it hard for them to cancel. Ross Stores set a leadership succession plan in which vice chair and CEO Barbara Rentler, who became company CEO in 2014, would continue in that role through January 2026, as the board of directors selected a successor. The Container Store Group struck a deal to stock decor and bedding from online specialty operator Dormify alongside a refreshed college product assortment in 40 locations. Container Store also inked an agreement with campus retailer Follett Higher Education that put Container Store pop-up shops in 36 of its locations. Wayfair began constructing its first namesake physical store in Wilmette, IL, for a planned spring opening. Burlington Stores became a top bidder for shuttered Bed Bath & Beyond locations, targeting 44 for $12 million. After acquiring Bed Bath & Beyond intellectual property out of Chapter 11, Overstock announced that it would rebrand the overstock.com website as bedbathandbeyond.com.

July

Christmas Tree Shops began to prepare for liquidation. Tuesday Morning announced the company’s decision to convert its Chapter 11 bankruptcy filing to Chapter 7 status and wind down the business. Target Corp. promoted Lisa Roath to the post of executive vp and chief marketing officer from executive vp and chief guest experience officer. A 17-year Target veteran, Roath was most recently senior vp of food and beverage merchandising, the company stated. Amazon maintained that on July 11, in the opening 24 hours of Prime Day, the company recorded the single largest sales day in its history, even as major competitors ran their own bargain promotions. Ross Stores company opened 18 of its Dress for Less and nine dd’s Discounts stores across 14 different states in June and July, entering Michigan for the first time. Wayfair rolled out Decorify, an AI-enhanced tool that allows consumers to virtually remodel their home spaces with merchandise they might purchase. For its 50th anniversary, Rent-A-Center kicked off a 50-day promotional campaign.

August

Overstock relaunched its website as bedbathandbeyond.com. TJX readied its 50th furnishings-focused HomeSense store, which opened in Florida. Amazon announced that it would conduct a second 2023 Prime Day event in October. Walmart stated that Kath McLay, Sam’s Club president and CEO, would take the president and CEO role at Walmart International on the retirement of title holder Judith McKenna; Chris Nicholas, Walmart U.S. COO, assumed McLay’s former role. Williams-Sonoma promoted Monica Bhargava to president of the Pottery Barn brand. She was Williams-Sonoma’s chief design officer. Home Depot launched the Home Depot Hub, which was created to help younger consumers become better do-it-yourselfers.

Walmart expanded its metaverse efforts already underway with Roblox by introducing its Supercampus with a focus on back-to-school shoppers. Crate & Barrel Holdings introduced Bring it Home, a multi-year investment plan established to build omnichannel capabilities and better customer experience. JCPenney launched a self-funded $1 billion reinvestment plan and customer value proposition to drive long-term growth in part by increasing customer loyalty and shopping frequency.

September

Rosalind Brewer left her post as Walgreens Boots Alliance CEO and director, with Ginger Graham,  lead independent director, named interim chief executive. The Container Store stated that it would add 1,000 new SKUs across categories as part of a brand campaign, Uncontained, that supports its expansion into strategic growth categories. As it looked to speed delivery, Target opened a new sortation center in Miami, one of 15 it plans to operate by the end of 2026. Macy’s named Olivier Bron Bloomingdale’s next CEO reporting to the man he replaced, Tony Spring, who already had been appointed Macy’s president and CEO-elect. Social media platform TikTok launched an e-commerce operation, TikTok Shop in the U.S. Nordstrom promoted Jamie Nordstrom to chief merchandising officer from chief stores officer, and appointed Fanya Chandler president, Nordstrom stores following a stint as senior vp and regional manager of the organization’s Southwest region.

Target kicked off its holiday push with a multi-faceted plan including an emphasis on value gifts, a sales promotion dubbed Circle Week that would run just ahead of Amazon’s Prime Big Deal Days and a new sustainability oriented owned brand in kitchenware, Figment. The Aaron’s Co. appointed Russell Falkenstein, executive vp, COO, lease-to-own after his stint as senior vp, chief strategy, analytics and development officer at Aaron’s, LLC, a company subsidiary. Ulta Beauty debuted the Joy Pro, a long-term company initiative designed to help consumers find, embrace and experience happiness in their lives. The U.S. Federal Trade Commission and 17 state attorneys general sued Amazon for employing monopolist practices based on anticompetitive and unfair business strategies. Target announced it would close stores across four states effective October 21 because theft and organized retail crime were threatening the safety of staff and shoppers. Ollie’s Bargain Outlet Holdings opened its 500th store in Iowa City, IA, the retailer’s first location in the Hawkeye state. Kohl’s named former Tuesday Morning CEO Fred Hand senior executive vp, director of stores.

October

Walmart announced that it would apply more technology to the customer shopping experiences, including new voice commerce capabilities and virtual room views to help consumers see how items like furniture would fit in their homes. Ross Stores closed out its store expansion plans for the year after opening a total of 51 new locations in September and October. Walgreens Boots Alliance appointed Tim Wentworth CEO. Dollar General Corp. appointed former CEO and current board member Todd Vasos as chief executive, succeeding Jeff Owen, who left the company and resigned from the board of directors. Rite Aid filed for Chapter 11 bankruptcy protection as it struggled with lower COVID-19-related sales and opioid settlement charges. Target announced the retirements of John Mulligan, executive vp and COO, and Laysha Ward, executive vp and chief external engagement officer, naming Matt Zabel chief corporate affairs officer, and Kiera Fernandez executive vice president and chief community impact and equity officer. Amazon, Booking.com, Expedia Group, Glassdoor, Tripadvisor and Trustpilot unveiled the first global Coalition for Trusted Reviews. The organizers developed the cross-industry collaboration to help ensure that consumer reviews on products and services are legitimate.

Wayfair scheduled its second Way Day of the year for late October in a promotion aimed at getting the company its share of early-season holiday shopping. Costco announced Craig Jelinek will step down as CEO, effective January 1, 2024, when the chief executive post passes to Ron Vachris, the company’s president and COO. Walmart pledged to use AI conscientiously, noting that artificial intelligence is embedded throughout the retailer’s operations, helping to enhance, for example, how it personalizes customer and employee experiences and moves goods through the supply chain. Overstock, which had been operating its retail business as bedbathandbeyond.com since August, announced it would change its corporate name to Beyond, Inc. Then it added that it would revive overstock.com in its original form as a closeout/off-price retailer. HomeGoods halted e-commerce operations, with the TJX banner informing consumers they could purchase household goods online through its siblings T.J. Maxx and Marshalls. BJ’s Wholesale Club opened its first Alabama store in Madison as part of an ongoing strategic expansion outside its core East Coast market.

November

As November opened, the National Retail Federation forecasted holiday sales growth to be between 3% and 4% over 2022. Under pressure from hedge fund JAT, what was Overstock ousted CEO Jonathan Johnson on the day it changed its corporate name to Beyond, Inc. Walmart partnered with NBCUniversal and Walmart to create a streaming shoppable version of Bravo’s “Below Deck Mediterranean” on Peacock. In anticipation of CEO Lee Bird’s retirement, At Home announced that it had formed an interim office of the CEO helmed by Jeff Evans, president and chief merchandising officer, Jerry Murray, CFO, and Ashley Sheetz, COO and that its board of directors has initiated a search for a new chief executive. Kohl’s announced that its chairman, Peter Boneparth, would retire from the retailer’s board at the end of his current term in May of 2024 when Michael Bender will become Kohl’s chairman. 

Crate & Barrel debuted a new 23,000 flagship store in New York’s Flatiron neighborhood, a community that’s become a design destination, while simultaneously launching a virtual version online with the digital replica offering 450 shoppable products. After more pressure from investor JAT, Beyond named board member and Camping World chief Marcus Lemonis co-chair of the company, sharing the title with Allison Abraham, who had been sole chair previously.

December

Beyond announced that Allison Abraham was leaving her co-chair position with the company and that co-chair Marcus Lemonis was transitioning into sole board chairman. Although the retailer refused to comment on the report, the Wall Street Journal reported Arkhouse Management and the Brigade Capital Investor Group approached Macy’s with a $5.8 Billion buyout bid. The Container Store opened its doors on its 100th location in Princeton, NJ. Zulily, although it didn’t make an official pronouncement, posted a note on its homepage that it was closing out operations.