Those moves, led by Chief Executive Officer
Mark Tritton,
ended up making the home-goods chain vulnerable to supply-chain problems that have roiled many retailers, according to former employees, industry executives and analysts.
Reducing the product selection left customers with fewer choices when seeking substitutes for out-of-stock items, people familiar with the matter said. Swapping out national labels for new private-label brands—aimed at boosting profits and sales—can be disruptive even in normal times, but it created even bigger challenges during the pandemic, the people said.
During part of the critical holiday season, the chain ran short of its 200 bestselling items, from kitchen appliances and electronics to sheets and bath towels, resulting in $100 million in lost sales for the most recent quarter,…
