Bed Bath & Beyond (BBBY)

How does the Company respond to these issues?

The Company has little or no visibility into manufacturing processes for the goods it carries, and so it requires its vendors to assure their products comply with all applicable laws, including those relating to content and labeling.  Further, the Company considers many factors in determining its product mix in addition to compliance with law, including for example product safety and customer acceptance.

The Company is very much aware of developments in the vendor markets in which it operates, with respect to issues such as those noted in the proposal as well as all other issues that may influence customer behavior.  The Company also believes it is well-positioned to anticipate and respond to any customer interest in alternative products, whether due to concerns such as those raised by the shareholder proponents or due to general consumer interest in natural or “green” products.  For example, Bed Bath & Beyond stores carry organic products in a number of major categories and are expanding such offerings into other categories as well.  Harmon stores also carry many brands of organic products presented to our customers in the health and beauty care lines.