Shoppers still reeling from the loss of can once again shop through its new website and app beginning on Tuesday.
Owner Overstock is betting the once-beloved brand can attract new customers and reverse its ongoing sales slump.
Bed Bath & Beyond's brick-and-mortar stores closed after the company wrapped up liquidation sales on Sunday following its April bankruptcy filing. But the retailer will live on online after longtime rival Overstock won its intellectual property at auction in June.
The e-commerce company, which has long felt its name was a detriment to its business, will instead merge its business under the Bed Bath & Beyond domain.
The newly launched website and app will feature the sorts of products that Bed Bath's customers have come to love and expect, but it'll also feature a wide assortment of goods in its revamped "beyond" category, which includes merchandise Overstock was already selling.It'll also feature one of Bed Bath's most beloved relics: plenty of coupons.
"We have added over 600,000 new products since the deal was first announced in early June, most of them in the bedding, bath and kitchen area. But, historically, we've been strong in patio furniture, area rugs, mattresses, living room and dining room furniture," Overstock CEO Jonathan Johnson told CNBC. "So the customer can expect a breadth and depth of products they haven't seen before."
The strategy behind the rebrand
Overstock acquired Bed Bath & Beyond because of the retailer's strong branding and cult-like following in the hopes it could revive its top and bottom lines.
In the quarter ended June 30, Overstock reported a 20% drop in sales compared to the year-ago period, a nearly 30% drop in active customers and slowdowns in orders delivered, average order values and the number of orders per active customer.
Johnson attributed the slowdowns in part to overall softness in the home goods category and the economy as a whole, but he pointed to Overstock's name as a factor, too.
"Rebranding to a name that is synonymous with home, rather than pushing, slogging forward with a name that was mistakenly confused with liquidation, something we haven't done in two decades, will help us cut through some of the difficulty of the current economy," said Johnson.
"We're self aware enough to know that nobody, not even my children, would put 'registered at Overstock.com' on their wedding announcement, baby announcements, but they will put 'registered at Bed Bath & Beyond' on both those announcements. So it's a name that people like, they're proud of, that they want to be associated with."
The rebranding also helps Overstock with business relationships, Johnson said. Certain vendors that Overstock previously worked with didn't allow them access to their entire product category because they didn't want that merchandise associated with Overstock. Now that the company has rebranded, those vendors are willing to expand their offerings, which helps Overstock provide a wider range of desirable merchandise, said Johnson.
The company plans to phase out the Overstock brand "over time," it said in a news release.
The chief executive was reluctant to share any specific guidance on how the acquisition will affect sales in the quarters and years ahead, because "it's still such an unknown." But he noted Overstock's launch of Bed Bath & Beyond in Canada has so far been positive.
Direct traffic to the site and conversions are both up, along with returns on ad spend for performance marketing, said Johnson.
"The Canadian customer is eager to buy from Bed Bath & Beyond. They're glad we've preserved the name. We expect the same in the U.S.," said Johnson.
With Overstock's acquisition, the company acquired a customer base that's about four times larger than its current base of about 4.6 million people. With that comes a fresh crop of customers that the company has data on, and can now market to.
Leaning in to an old strategy
To gauge the success of the acquisition and rebrand over the next 12 months, Johnson said he will be laser-focused on significantly growing Overstock's active customer base and their order frequency.
To get there, he'll be leaning in to a strategy that has proven successful for both Overstock and Bed Bath & Beyond in the past: attractive deals and coupons.
To celebrate the launch, anyone who downloads and shops on the new app will receive a 25% off welcome coupon and those who are part of Overstock's current loyalty program, Club O, will receive a 20% off coupon, the company said.
Shoppers currently enrolled in Bed Bath & Beyond's loyalty program will receive a reinstatement of up to $50 in unused loyalty reward points, exclusive coupons and free membership to the revamped Welcome Rewards program, which costs $19.95 a year.
FAQs
Bed Bath & Beyond's brick-and-mortar stores closed after the company wrapped up liquidation sales on Sunday following its April bankruptcy filing. But the retailer will live on online after longtime rival Overstock won its intellectual property at auction in June.
What is the new name for bed, bath, and beyond? ›
Overstock is now Bed Bath & Beyond — so what does that mean for shoppers? Here's what you need to know about the revamped brand. It's official — Overstock has rebranded as Bed Bath & Beyond, bringing the two iconic brands together to create an ultimate home shopping destination.
What will happen to BBBY stock? ›
Bed Bath & Beyond shares were eliminated Friday after the company's bankruptcy plan went into effect, marking the end of a speculative frenzy that drew retail investors who defied repeated warnings that the stock would become worthless.
What is hurting bed, bath, and beyond? ›
Key Takeaways: Bed Bath & Beyond filed for bankruptcy in April 2023 and had all of its assets liquidated. Many of the company's setbacks were self-inflicted, brought on through poor decision-making and financial mismanagement.
Did Hobby Lobby buy out Bed Bath and Beyond? ›
Vacant Bed Bath & Beyond locations have been scooped up by a variety of retailers, including Hobby Lobby, since the chain went out of business. Burlington Stores, the off-price apparel seller, has leased a number of those sites, as have crafts seller Michaels and HomeGoods.
Where did Bed Bath & Beyond go wrong? ›
He scaled back coupons and inventory from national brands in favor of Bed Bath & Beyond's own private-label brands. But this change alienated customers who were loyal to big brands. The company also fell behind on payments to vendors and stores did not have enough merchandise to stock shelves.
Who bought out Bed Bath and Beyond? ›
Dive Brief: Online-only retailer Overstock officially relaunched its U.S. e-commerce site as Bed Bath & Beyond on Tuesday. The move follows Overstock's June 28 purchase of Bed Bath & Beyond's intellectual property for $21.5 million out of bankruptcy.
Who's taking over Bed Bath & Beyond? ›
Overstock.com bought Bed Bed & Beyond's brand out of bankruptcy and has relaunched it online, complete with the 20% coupons. But hundreds of empty Bed Bath & Beyond stores auctioned off as part of the bankruptcy proceedings are turning out to be coveted real estate for retailers and other companies seeking to expand.
Is Overstock taking over bed, bath, and beyond? ›
Sadly, all of the Bed Bath & Beyond stores have officially closed, but the home brand lives on — thanks to Overstock, which has recently taken over the name. Overstock acquired the bankrupt brand back in June, and now, the two brands have been merged into one online shopping platform.
Is Bed Bath & Beyond stock worthless? ›
It's the end of the road for shares of bankrupt home goods retailer and sometime meme-stock darling Bed Bath & Beyond Inc. In a filing Friday, Bed Bath & Beyond BBBYQ said that its shares are canceled, and “have no value” as the company's bankruptcy plan takes effect.
Overstock.com is revamping using Bed Bath & Beyond's name Overstock bought Bed Bath & Beyond's intellectual property in bankruptcy court. Overstock CEO Jonathan Johnson said the company wanted Bed Bath & Beyond's name recognition.
Is anyone buying Bed Bath and Beyond? ›
Overstock (OSTK), which sells furniture, home furnishings, bath, lighting, rugs and an array of other products online at discounted prices, acquired Bed Bath & Beyond's name, intellectual property and digital assets in June with a winning bid of $21.5 million for its assets.
Is there any hope for bed, bath, and beyond? ›
Even though Bed Bath & Beyond is still expected to file for bankruptcy by the end of the year, there is promise in the company's future because of its new CEO. Appointed in October 2022, Sue Gove took the position to revive the company's state.
What is the bed bath and beyond scandal? ›
The executive vice president and chief financial officer of Bed Bath & Beyond who plunged to his death from the 18th floor of a New York City skyscraper on Friday was the subject of a class-action lawsuit alleging that he and majority shareholder, GameStop Chairman Ryan Cohen, had artificially inflated the company's ...
Why did Bed Bath and Beyond stop selling my pillows? ›
Bed Bath & Beyond stops selling MyPillow after CEO's Capitol siege comments. Bed Bath & Beyond has stopped selling MyPillow products following CEO Mike Lindell's support of the January 6 insurrection and his continued false statements questioning the validity of the US presidential election.
What is the Bed Bath and Beyond scandal? ›
Activist investor Ryan Cohen is the defendant in a lawsuit involving alleging that he "pumped and dumped" Bed Bath & Beyond stock last year. Ryan Cohen, known for his roles at Chewy and GameStop, has been accused of securities fraud and insider trading related to his investment in Bed Bath & Beyond.
Why is everything out of stock at Bed Bath and Beyond? ›
Analysts say supply chain issues with private label brands and issues paying suppliers have contributed to this lack of inventory. The lack of inventory puts Bed Bath and Beyond in a major quagmire: It wants to bring back national brand products to improve performance, but it has a limited supply of products to offer.
Can I still use my Bed Bath and Beyond gift card? ›
The Bed Bath & Beyond Gift Card does not expire and has no fees. Take caution to safeguard the Bed Bath & Beyond Gift Card.
