Steven Temares, who has been Bed Bath & Beyond's CEO since 2003, declined Monday and joined the Bed Bath & Beyond Board. Temares will be temporarily replaced by Mary Winston, former CFO of Family Dollar. She will currently be one of the handful of Fortune 500 female CEOs.
The company's board said it would form a search committee to find a permanent CEO. It will try to find a CEO who has "transformation and innovation experience" in retail.
The theme's departure is a necessary first step to reviving wealth dealers, says Neil Saunders, CEO of GlobalData Retail. in a note to clients on Monday. Bed Bath & Beyond needs to hire a manager who can "put in a plan to transform the company into the modern reality of retail."
In March, three activist funds built a share of around 5% in Bed Bath & Beyond, and attempted to replace the company's entire board and CEO Temares.
Since the activist battle started, Bed Bath & Beyond has taken steps to show investors that it has a turnaround plan.
Bed Bath & Beyond appointed several new directors to the board, including a new executive director, and renewed its corporate governance structure. It also announced plans to close around 40 sites this year and test new ideas with "lab" stores selling more home decor and food.
Monday, Patrick Gaston, Independent Leader of the Bed Bath & Beyond Board, told "the board has determined that it is the right time to identify the next generation of leadership."
Saunders, the GlobalData analyst, warned that there will be "many more painful quarters ahead "for Bed Bath & Beyond. He said the company should consider closing underperforming stores and investing online and in more profitable stores.
Although these investments will "cause disturbance" and push the merchant's profits, they are "the cost of long-term survival," he said.