Bed Bath & Beyond Inc. announced the next step in its transformation, which is modernizing and reinventing its supply chain to significantly improve merchandise replenishment. Through a strategic partnership with Ryder System, Inc. Ryder will develop and operate two regional distribution centers that will reduce product replenishment times to Bed Bath & Beyond® and buybuy BABY® stores to less than 10 days from the current 35 days, thereby improving the customer experience. This partnership with Ryder underscores Bed Bath & Beyond's ongoing progress with its supply chain initiatives, as the Company last October announced plans to allocate $250 million of capital investments in its reinvention of this critical business area over the next several years.

Ryder, a leading logistics and supply chain solutions company, was selected from a competitive request for proposal process that began last year. The first regional distribution center will be a one-million-square-foot modern facility, with the potential for expansion, located in Frackville, Pa. It will provide merchandise to stores throughout the Northeast for both in-store shopping and online shopping services such as Buy Online Pickup in Store or Curbside, Same Day Delivery, and Ship from Store.

This regional distribution center will open this fall, and Ryder will then open a similar facility next year in Southern California. These two brand new facilities will each create 300 new jobs in their local communities. The selection of Ryder as a third-party logistics provider continues Bed Bath & Beyond's investments to modernize its operations as part of a company-wide transformation strategy.

This includes the selection of Oracle earlier this year as the Company's Enterprise Resource Planning (ERP) technology provider and announcement of RELEX Solutions, a retail-focused omni-channel visibility tool that, among many benefits, will provide real-time visibility into the supply chain. These added technology solutions will enable the Company to track the merchandise and products stored and distributed by these new regional distribution centers, enabling greater efficiencies and capabilities to plan and forecast product replenishment to improve in-stock positions and speed to market. Additional elements of Bed Bath & Beyond executing against its transformation include launching six Owned Brands ahead of schedule, re-opening its newly redesigned store emblematic of a plan to remodel 450 stores, continued progress to becoming a digital-first, omni-always retailer, and introducing a new brand positioning.