US-based Bed Bath & Beyond filed for bankruptcy in 2023 but is now the hero brand of a collection of retail names, hundreds of stores, and a strategy based on everything for the home. With the opening of the first combined Bed Bath & Beyond and Container Store outlet in Dallas, President Amy Sullivan explains how the new strategy has brought the brands together.
Tell us a little about the new Bed Bath & Beyond
Amy Sullivan: “When you look at Bed Bath & Beyond, Container Store and even the Kirklands acquisition, they all bring in a different piece of home for the consumer from a retail lens that does not compete but complements one another. So certainly, from a brand and assortment perspective, we believe they’re a nice combination.
We’re moving the rebranding forwards, leading with Bed Bath & Beyond. I would say as we approach the back half of the year, I want to make sure that all of those converted stores have the appropriate towel wall, the appropriate bedding assortment, and so we’re leading with the product and getting the product right. We want the customer to feel the change in the stores with store signs and window signs that really start to shout the branding ahead of getting the marquee signs changed, so it’s been an organic process.”
How will the new format evolve?
Amy Sullivan: “Container Store has amazing real estate and so, as we think about an omni-channel strategy and really bringing brick and mortar back for Bed Bath & Beyond, its real estate was prime for us. Not only the size of it, but the locations of where it exists today. So, we thought that was a unique opportunity to be able to bring Bed Bath & Beyond back in a more rapid way. I would think of it as Bed Bath & Beyond as the hero brand of everything because it has a customer database that’s four, five, six times larger than any of the others, so the reach of Bed Bath & Beyond is far greater than Container Store.
When you walk into that first location in Dallas, it’s a little bit of a 50/50 split. Everyone is looking for ways to have an omnichannel experience with the consumer and retailers alike, Wayfair is growing their store base, others are as well, and from brand reach and the cost of customer acquisition, having both channels is a much more meaningful and long term strategy when we think about the touch and feel of home decor.”
Tell us about your store expansion plans
Amy Sullivan: “The Dallas opening is only the beginning, we’re already rolling out Bed Bath & Beyond branding across dozens of Container Store locations. Approximately 98 stores are currently involved in the conversion effort, while another 50 Kirkland’s locations will eventually become combination Bed Bath & Beyond and Container Store formats. An additional 150 stores we expect to become smaller format Bed Bath & Beyond Seasonal Living locations.
If you think about the capital investment of opening 100 new stores, this is certainly much easier. We are also looking at new real estate. I expect us to open anywhere from five to 10 stores a year. From the smaller format perspective, I would say they’re roughly 1,000 sq m, so about half the size of the more typical larger format stores. We are opening our first one in South Lake, Texas, very soon.”
