The company is also seeking cost savings from a comprehensive lease renewal efforts and the corporate workforce reduction announced in late July 2019, and certain other near-term actions that are expected to collectively take tens of millions of dollars out of the cost base of its business, increasing margins while also creating a more effective organization to meet the needs of our customers today and in the future.

In July, Bed Bath & Beyond announced it initiated a reduction in corporate staff at its headquarters in Union, NJ and at other select locations where corporate associates are based. As part of this realignment, Eugene A. Castagna, president and COO of the company, departed and the role has been eliminated.

The company stated in July it had recently completed a comprehensive and careful review of its corporate office cost structure, which resulted in a reduction of approximately 7% of its corporate staff, including vice presidents, directors, managers and professional staff.

Other initiatives outlined in the shareholders letter released earlier this week included a longer-term plan to substantially change its sourcing and buying approach to increase the penetration of its private-label offerings that should yield significant cost savings over the next two-to-three years and provide further product differentiation and a more favorable margin structure.

The retailer also has embarked on what it terms is an aggressive reduction of up to $1 billion of inventory that is expected to be executed over the next 18 months, including the removal of excess aged inventory from its stores anticipated before the 2019 holiday season.

"Also, we continue to evaluate our fleet to create a better balance between our physical and digital presence within the markets we serve, to deliver the shopping experience our customers want. Furthermore, we expect to be able to take advantage of our heavy lease expiration cadence over the next couple of years, to close underperforming stores or relocate stores to improve sales and profitability on a per-store basis," the shareholder letter states.

In terms of changes to its governance, nine new independent directors have been appointed over the past few months, significantly reducing the average tenure of its Board.

Gaston and Winston, who was appointed interim CEO in May, stated that the company's CEO Search Committee "has undertaken a robust process to identify a leader who has a multifaceted skill set, including transformation and innovation experience in the retail sector as well as e-commerce and marketing experience. The caliber of candidates is outstanding, and we expect to be able to announce the hire of a world-class CEO in the coming weeks who will lead the company and continue the transformation already underway."