Retail giant Bed Bath & Beyond plans to roll out 8 new private label brands in the upcoming year.
Bed Bath & Beyond, the home goods retailer, has announced a plan to launch at least eight private labels this year, as part of a broader three-year turnaround strategy. The plan, which was first announced in October, aims to reposition the company's core brand identity and drive profitability.
The strategy focuses on the strategic emphasis on private-label and house-brand offerings, leveraging digital strengths, and a neighborhood store model. According to CEO Mark Tritton, who joined the retailer in late 2019, "In 2020, we rebuilt and stabilized the foundations of our business while creating growth."
Tritton, who has experience with private labels, having launched over 30 at Target, is confident that this strategy will help Bed Bath & Beyond grow its sales penetration from private labels to 30% within the first three years. Currently, private labels account for only 10% of Bed Bath & Beyond's sales, while owned brands make up one-third of Target's sales.
The retailer will launch thousands of new products exclusive to Bed Bath & Beyond while simultaneously cutting thousands of underperforming brands, labels, and products. Six of the eight private labels will launch in the first six months of the company's fiscal year.
The first private label, Nestwell, will focus on bedding and bath products and is set to launch later this month. Other private labels include Simply Essential, a brand focusing on household products, and Haven, a bath brand that will be relaunched in April.
Beyond, Inc., the parent company of Bed Bath & Beyond, is also expanding capital and credit facilities to support this rollout and accelerate store conversions. The company has partnered with Kirkland’s to run small-format neighborhood stores branded as Bed Bath & Beyond Home and Overstock stores, helping to expand physical presence while emphasizing private-label products in these formats.
The new Bed Bath & Beyond aims to offer a customer-inspired assortment, reimagined stores, an enhanced omni-always, digital-first shopping experience, and exceptional value across every price point. The retailer will also reset the merchandise assortment, remodel around 450 stores, and improve the digital experience.
However, the retailer has not yet specified which of the planned private labels are expected to reach the $1 billion sales milestone, as seen with ten private labels of Target. The success of these private labels will be crucial in helping Bed Bath & Beyond achieve its turnaround goals.
[1] Fung, A. (2021). Bed Bath & Beyond to Launch Private Labels Amid Turnaround Strategy. Bloomberg.com. [2] Kang, J. (2021). Bed Bath & Beyond to launch 8 private labels this year as part of turnaround strategy. CNBC. [3] Press Release. (2021). Bed Bath & Beyond Announces Expanded Capital and Credit Facilities to Support Growth Initiatives. GlobeNewswire. [4] Press Release. (2021). Bed Bath & Beyond Announces Strategic Partnership with Kirkland’s. GlobeNewswire. [5] Press Release. (2021). Beyond, Inc. Reports Fourth Quarter and Full Year 2020 Results. GlobeNewswire.
- Bed Bath & Beyond, with its new strategy, is planning to boost its private labels from the current 10% of sales to 30% within the first three years, similar to one-third of Target's sales.
- The retail giant, Beyond, Inc., is partnering with Kirkland’s to run small-format neighborhood stores, emphasizing the importance of private-label products in these formats.
- A key part of the new Bed Bath & Beyond's business strategy is the enhanced digital shopping experience, leveraging digital strengths, and reimagined stores.
- The forthcoming private label, Haven, focusing on bath products, is scheduled for relaunch in April, part of the plan to launch at least eight private labels this year.
