Bed Bath & Beyond has relaunched in the U.S. as an online retailer with offerings that include those of Overstock.com, its new owner.
Now a single online shopping site known as BedBathandBeyond.com, the combined entity’s offerings include furniture, rugs, decor, kitchen, lighting and bath products.
Bed Bath & Beyond filed for bankruptcy in April. Overstock acquired the retail chain’s intellectual property assets in June, relaunching the brand in Canada last month. It followed up with a U.S. relaunch and a refreshed website, mobile app and loyalty program.
Overstock said it is rebranding its Club O loyalty program as Welcome Rewards, which will continue to offer 5% reward dollars for all purchases that can be fully redeemed in subsequent transactions.
The company also said it is offering free membership in the Welcome Rewards program, which is valued at $19.95, for active members of the former Bed Bath & Beyond loyalty program. Qualifying customers will be sent emails with exact details, Overstock said.
Perks include 25% off coupon
Other perks offered as part of the relaunch include sitewide deals and promotions. These include a 25% off welcome coupon for anyone who downloads and shops through the new mobile app, which is available for iOS and Android.
The acquisition excluded Bed Bath & Beyond’s brick-and-mortar business, as well as the buybuy Baby and Harmon banners and their assets formerly operated by Bed Bath & Beyond.
Some retail experts say the deal makes sense for both companies, but especially for Bed Bath & Beyond.
“It’s about time that the BB&B brand is being utilized properly in today’s changing consumer economy,” said Jonathan Pasternak, partner at Davidoff Hutcher & Citron in New York, who has represented Chapter 11 bankruptcy clients.
“By going virtual, so to speak, the brand will avoid being dragged down by the retail lease and employee overhead that forced it into bankruptcy in the first place, while still offering their quality products and enticing coupon incentive programs,” Pasternak said. “I believe they can grab back a decent market share through this transition, which was way overdue.”
Other industry insiders say Bed Bath & Beyond had no choice.
“In its heyday, Bed Bath & Beyond’s competitive advantages lay in its merchandise assortment, customer service and ubiquitous coupon,” said Hank Reinhart, a former Bed Bath & Beyond executive, and founder of Sabavi Home in Hackensack, N.J. There was no strategy to pivot successfully from brick and mortar to online or omnichannel, he said.
With its acquisition of the Bed Bath & Beyond name, Overstock gains immediate credibility in the home category, which will help it gain vendor support, Reinhart said.
However, Reinhart said, Overstock is also acquiring the same challenges that Bed Bath & Beyond ultimately succumbed to. “With so many websites offering endless aisles of merchandise, breadth of assortment is no longer a differentiator,” he added.
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A former Wall Street bond trader, Brian O’Connell is the author of two best-selling books: “The 401k Millionaire” and “CNBC’s Creating Wealth.” His work is bylined in national finance and business platforms such as TheStreet.com, CBS News, The Wall Street Journal, U.S. News & World Report, Forbes, Fox News and many others. His corporate clients have included SoFi, Experian, Prudential, Compliance.ai, Oanda, General Motors, the Kaufman Foundation, PNC, and many others. With 20 years of experience covering business news and trends, particularly in the business and financial sectors, he believes education is the best gift a financial consumer can receive – and brings that philosophy to every story he writes. Brian is a graduate of the University of Massachusetts, and currently resides in Palmas del Mar, Puerto Rico during the winter months, and in historic Bucks County, Pa., when Mother Nature cooperates.
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