Omni-channel retailer Bed Bath & Beyond has revealed that the company is on track to close 200 stores by next year.

The move is part of the company’s strategy to right-size its store network and expected to generate annualised EBITDA savings of nearly $100m.

The retailer plans to invest more on omni-always digital and in-store shopping experience building on the recent launch of Buy-Online-Pickup In-Store (BOPIS), Curbside Pickup and Same Day Delivery services.

Under this overall store optimisation programme, Bed Bath & Beyond also plans to invest to streamline shopping experience including around $250m across approximately 450 stores.

Additionally, the company expects to grow its physical footprint with additional stores in new markets as part of its strategy to build authority in the Baby market. It plans to increase sales in the market by 50% to approximately $1.5bn by fiscal 2023.

Bed Bath & Beyond president and CEO Mark Tritton said: “We have made tremendous progress this year to strengthen our financial position, focus our portfolio in core Home, Baby, Beauty & Wellness markets, rebuild our executive team, and launch a series of omnichannel services to win back customers.

“We will build on these strong foundations with a three-year growth strategy that further elevates the shopping experience, modernises our operations, and unlocks sales growth, margin expansion, increased cash flow and strong and sustainable total shareholder return.”

In addition to store remodelling, Bed Bath & Beyond plans to launch a $225m accelerated share repurchase.

Earlier this month, Bed Bath & Beyond entered into agreements to divest some of its non-core assets.