Retail giant, Bed Bath & Beyond, sets to unveil eight new private labels in the current year
Bed Bath & Beyond has announced a comprehensive three-year turnaround plan, aiming to revitalize its brand and boost sales through the expansion of private labels and the introduction of thousands of new products exclusive to its stores.
The retail giant plans to launch at least eight private labels this year, with six of these brands set to debut in the first six months of its fiscal year. The first private label, Nestwell, focusing on bedding and bath products, is scheduled to launch later this month, followed by the relaunch of bath brand Haven in April.
Mark Tritton, who joined Bed Bath & Beyond as CEO in late 2019, stated, "In 2020, we rebuilt and stabilized the foundations of our business while creating growth." Tritton, a veteran in the retail industry, previously served as Target's chief merchandising officer and launched more than 30 private labels there.
The company aims to grow its sales penetration from private labels to 30% within the first three years. To achieve this, Bed Bath & Beyond intends to cut thousands of underperforming brands, labels, and products, focusing instead on product innovation and category diversification.
The strategy emphasizes an asset-light omnichannel approach, combining physical stores and an improved e-commerce platform. This approach includes the conversion of Kirkland’s stores into Bed Bath & Beyond and BuyBuy Baby stores over the next 24 months. The goal is to boost profitability using capital discipline, data science, and digital initiatives related to brand IP.
The new private labels will focus on smaller-format stores (7,000 to 15,000 sq. ft.) with curated private label assortments, replacing large former superstores. The presence of three banners—Bed Bath & Beyond, BuyBuy Baby, and Kirkland’s/The Brand House Collective—suggests diversified categories, including home goods, baby products, and curated home décor.
Other private labels in the pipeline include Simply Essential, focusing on household products, and it's expected that these new labels will be a significant part of Bed Bath & Beyond's growth strategy in the coming years.
Target's owned brands make up one-third of its sales, with 10 of its store brands generating $1 billion in sales. The most recent $1 billion-generating brand at Target is All in Motion activewear. This success underscores the potential for Bed Bath & Beyond's private label strategy to drive sales and profitability.
As Bed Bath & Beyond embarks on this ambitious plan, it's clear that the company is committed to a strategic and innovative approach to private label product development and retail expansion. The focus on product innovation, category diversification, and an improved digital experience positions Bed Bath & Beyond well for the future of retail.
[1] Source: Bed Bath & Beyond press release [2] Source: Glossy [3] Source: Retail Dive [4] Source: Furniture Today [5] Source: RetailWire
- Bed Bath & Beyond is planning to introduce at least eight new private labels this year, with a focus on smaller-format stores and product innovation.
- The retail giant aims to boost sales by growing its sales penetration from private labels to 30% within the first three years, which involves cutting thousands of underperforming brands and products.
- Target's success with its private labels, making up one-third of its sales, serves as a potential model for Bed Bath & Beyond's growth strategy with its new private labels.
- The company's strategic approach to private label product development and retail expansion includes an asset-light omnichannel approach, combining physical stores and an improved e-commerce platform.
- With the presence of three banners—Bed Bath & Beyond, BuyBuy Baby, and Kirkland’s/The Brand House Collective—the company aims to diversify categories, including home goods, baby products, and curated home décor.
