(CNN) - According to CNN Business, the home goods retailer says it will close approximately 40 stores but open 15 in new locations.
Bed Bath & Beyond currently operates 1,500 stores.
The company's chief financial officer and treasurer Robyn D'Elia saying that the number of stores that are expected to close will grow if the company doesn't quote "negotiate more favorable lease terms" with landlords.
CEO Steven Temares told investors during an earnings call earlier this week that the new 21 “next-generation lab stores” fared better than other locations.
The lab stores have “a greater emphasis on home decor, food and beverage, and health and beauty care,” Temares said, and different layouts that aim to give shoppers better views of the merchandise, CNN reports.
Officials also reportedly discussed plans to test out different visual merchandising to enhance the shopping experience.
Shares of Bed Bath & Beyond stock were up Friday morning.