- Online-only retailer Overstock officially relaunched its U.S. e-commerce site as Bed Bath & Beyond on August 1. The move follows Overstock’s June 28 purchase of Bed Bath & Beyond’s intellectual property 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 July 30, 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.
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 Bed Bath & Beyond is a much-loved and well-known consumer brand, which had an outdated business model that needed modernizing.”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 now will also offer furniture and other home product categories like rugs, lighting, and decor.
Overstock has historically had an 80% overlap with Bed Bath & Beyond’s vendor base. “However, in the past some of our partners have not offered us their entire catalog of these branded home products,” Johnson said. “That is now changing in a meaningful way.” Overstock’s SKUs have increased by 600,000 since early July when news of the Bed Bath & Beyond acquisition broke, Johnson noted.
“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.