After rumors that home goods retailer Bed Bath & Beyond (BBBY) assets were up for sale, the company has sent a letter to its shareholders explaining its transformation initiatives going forward.

The letter sent from Mary A. Winston, interim CEO at Bed Bath & Beyond, and Patrick R. Gaston, chairman of the Board of Directors, discusses the changes the retailer is undergoing to improve its competitive positioning as well as its financial performance.

The update on the company included priorities that were outlined by Winston during Bed Bath & Beyond’s Q1 earnings call in July. Winston said in the letter that the company was being “relentless in our pursuit of short-term opportunities to effect meaningful change, while laying the foundation for transforming our Company for long-term success.”

Both Winston and Gaston cited the “rapid refresh” of nearly 160 stores, which is currently underway and is expected to be completed before the holiday season. The company has also embarked on a longer-term store renovation program in addition to more loyalty initiatives for its customers.

“We expect this multimillion-dollar investment in physical improvements to be clearly visible to the customer and favorably impact the in-store shopping experience over the short term,” Winston and Gaston said in the letter to shareholders.

Beyond the store overhauls, Bed Bath & Beyond reduced workforce in late July 2019, citing cost-saving needs as well as negotiating lease renewals, which the company said are expected to save “tens of millions of dollars.” Additional cost savings are anticipated to come from a new buying and sourcing approach to private-labeled merchandise in the next two to three years.

Bed Bath & Beyond also expects to reduce its inventory by up to $1 billion over the next 18 months, including removing aging inventory before the holiday shopping season approaches. The company said it will continue to close underperforming stores, relocate stores, and take advantage of leases that are coming to an end.

The company also said it will be appointing a CEO in the coming weeks.

“As we continue to work toward executing on our business transformation, we remain confident in the strength of our brand and the future of Bed Bath & Beyond,” Winston and Gaston said. “Our focus on putting the customer at the center of our transformation, supported by data and insights, is intended to restore Bed Bath & Beyond to its iconic status and improve the Company’s competitive position.”

Shares of Bed Bath & Beyond stock were up 6.49 percent as of 2:10 p.m. ET on Thursday. 

Bed Bath & Beyond store A Bed Bath & Beyond store in Massachusetts is pictured. Photo: Bed Bath & Beyond