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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 for $21.5 million out of bankruptcy.
- Overstock’s IP purchase, however, did not include any physical stores. Bed Bath & Beyond is continuing for now as an online-only retailer. The remaining brick-and-mortar Bed Bath & Beyond locations permanently closed on Sunday, several media outlets reported.
- The relaunch comes days after the company formerly known as Overstock reported revenue fell 20% year over year to $422 million.Overstock CEO Jonathan Johnson, who is now Bed Bath & Beyond’s CEO, acknowledged that a period of financial volatility was possible as the company rebrands.
Dive Insight:
Bed Bath & Beyond’s U.S. relaunch follows Overstock’s June re-introduction in Canada.
After years of operational and financial setbacks and challenges, Bed Bath & Beyond filed for Chapter 11 in April after 52 years in business. Bed Bath & Beyond said in court filings that moving too slowly to embrace and enhance its e-commerce offering hurt the company, and the issue was compounded when many retailers were forced to close their physical stores at the height of the pandemic a few years ago.
Since this spring, the company has attempted to sell parts of its businesses individually in order to maximize value for shareholders and stakeholders. While no one stepped forward to keep Bed Bath & Beyond’s physical store locations going, Overstock saw an opportunity to acquire a famous brand name that resonates with consumers.
In a July earnings call, Johnson, who had led Overstock since 2019, described challenges that faced both companies as “anchors” that were holding both businesses back.
“This is a historic day for Bed Bath & Beyond and Overstock – and for the broader e-commerce industry,” Johnson said in an announcement. “Overstock has a great business model with a name that does not reflect its focus on home. Bed Bath & Beyond is a much-loved and well-known consumer brand, which had an outdated business model that needed modernizing.”
That includes expanding its assortment. The company will continue to offer the kitchen, bed and bath products Bed Bath & Beyond is known for, but starting today will also offer furniture and other home product categories like rugs, lighting, and decor.
“Through this rebranding, we’re breathing new life into Bed Bath & Beyond, positioning it as an asset-light, e-commerce retailer with an expanded home furnishings and furniture assortment,” Johnson said.
Johnson previously said the name and Overstock brand confused some consumers and even vendors. The new Bed Bath & Beyond is a name that better communicates the company’s offering as it seeks to position itself as a “smart value” retailer that offers quality products for less.
Overstock has bet big on acquiring Bed Bath & Beyond’s assets, said Neil Saunders, managing director of Global Data.“In theory, this makes sense, even if it is a tacit admission that the Overstock brand is not particularly compelling,” Saunders said in emailed comments last week, ahead of the company’s relaunch. “Bed Bath & Beyond is a much more powerful, much better-known brand than Overstock and, despite recent problems, it retains a lot of customer goodwill. The name will drive more traffic and trade in the online space.”
For years, one of Bed Bath & Beyond’s signature customer traffic engagement strategies was sending paper coupons in the company’s signature shade of blue through the mail. While the printed coupons won’t return, the promotions will continue through a new loyalty program and an updated mobile app.
“If you liked the Bed Bath & Beyond coupons of the past, you will love our better pricing, special promotions, broader assortment, and the improved customer experience on the website and mobile app,” Johnson said. “We’ve seen strong customer engagement with our BedBathandBeyond.ca Canada business that launched on June 29.”
To celebrate the relaunch of the brand, Bed Bath & Beyond said it’s offering customers several deals and promotions. They include a 25% off welcome coupon for anyone who downloads and shops through the new Bed Bath & Beyond mobile app and reinstated loyalty points, exclusive coupons, and free membership in the new loyalty program for active members of the former Bed Bath & Beyond loyalty program.
FAQs
Why would Overstock want to rebrand as Bed Bath & Beyond? Bed Bath & Beyond has strong brand recognition and a fervent customer base — two things Overstock needed, said Mindy Weinstein, founder and chief executive of the digital marketing company Market MindShift.
What is the new name for Overstock? ›
Overstock (ticker: OSTK) purchased the Bed Bath & Beyond brand from bankruptcy in June. It has been operating as Bed Bath & Beyond in the U.S. since August. On Nov. 6, the company will change its corporate name to Beyond Inc.
Who owns Overstock and Bed Bath and Beyond? ›
The company was founded as D2:Discounts Direct in May 5, 1997 by Robert Brazell. The company went bankrupt in 1999. Patrick M. Byrne and Jason Lindsey acquired the company and renamed it as Overstock.com.
Will Overstock keep Bed Bath and Beyond stores open? ›
Assets such as store leases, inventory and warehousing were excluded in the deal. Overstock has no plans to use physical stores again for Bed Bath & Beyond, Johnson said.
What will happen to Bed Bath and Beyond? ›
Bed Bath & Beyond's stores have officially shuttered but customers can still shop the brand through its relaunched website and app. Overstock acquired Bed Bath's intellectual property and ditched its own name in a bid to boost sales, acquire new customers and cement itself as a go-to home goods retailer.
What happened with Overstock? ›
Bed Bath & Beyond is back from the dead with Overstock.com relaunch Online discount retailer Overstock.com has become Bed Bath & Beyond after buying the bankrupt home-goods brand. But don't expect brick-and-mortar stores to reopen or big blue coupons in the mail.
Why is Overstock a problem? ›
One of the most obvious pitfalls of overstocking is the rise in inventory costs. Inventory costs refer to all expenses that involve inventory management, including storage, ordering, transportation, etc. When you order too many supplies, you may end up storing them in spaces meant for other products.
What company bought Overstock? ›
It's official — Overstock has rebranded as Bed Bath & Beyond, bringing the two iconic brands together to create an ultimate home shopping destination. Bed Bath & Beyond filed for bankruptcy earlier this year and Overstock acquired some of its assets back in June at an auction.
Is it OK to buy from Overstock? ›
Is Overstock legit? Overstock.com is a legitimate and reliable website. Because of its vast selection of liquidated products, Overstock.com can be a good choice for anyone looking for a particular item from a specific major retailer.
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.
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.
Why did CEO of Bed Bath and Beyond get fired? ›
“He has performed poorly (as demonstrated by the company's financials relative to its peer group), he has communicated poorly with investors and the sell-side community and he has recently taken actions that give the appearance that his own interests are being prioritized,” said the letter, which was revealed in a ...
Did Overstock and Bed Bath merge? ›
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.
Can I use my Bed Bath and Beyond gift card at Overstock? ›
The Bed Bath & Beyond Gift Card may only be used to purchase goods or services at Bed Bath & Beyond under the "Shopping Tab."
Did Overstock buy buy baby? ›
Overstock.com acquired the brand and its IP assets for $21.5 million right after the BBBY bankruptcy and, in a virtual New York minute, rebranded the company to Bed Bath and Beyond online, changed its corporate name to Beyond Inc. and moved from the Nasdaq to the NYSE.
How much did Overstock pay for Bed Bath and Beyond? ›
Overstock (ticker: OSTK) paid $21.5 million in June to acquire Bed Bath & Beyond's intellectual property and name. By August, the company, known as an online furniture liquidator, had changed its public-facing name to Bed Bath & Beyond, seeking to capitalize on a brand that was better known among consumers.
Why is Bed Bath and Beyond being sued? ›
The billionaire activist investor Ryan Cohen won the dismissal on Tuesday of a shareholder lawsuit accusing him of profitably cashing out of Bed Bath & Beyond shares too quickly as the home goods retailer was hurtling toward bankruptcy.
