What’s the story?
- Beyond Inc. is steering Overstock into higher-end luxury products, targeting households with incomes of $100K and up.
- The strategy for bedbathandbeyond.com is settling into value-oriented good/better/best products.
- For bricks & mortar Bed Bath & Beyond locations, there will eventually be a crossover between products/brands/suppliers carried the stores and those sold on the site to foster a true omnichannel experience.
- Conversions of legacy Kirkland’s stores to the new Bed Bath & Beyond Home format are being done with a thrifty budget. The first revamp, which opens next week in Nashville, cost $100K.
Murray, Utah – After showing some progress against Beyond Inc.’s Q1 performance, the company hopes to transition from slashing skus and overhead to pursuing profitable growth.
During this morning’s Q2 investor call, executives discussed the evolving merchandising plans for its retail brands as well as how it plans to pursue block chain, tokens and crypto to unlock value in its non-retail holdings.
“It’ll take a while to really figure out directionally and strategically how we extract the most amount of value out of this company. We know having the core e-commerce business delivering cash flow is that at top of the list,” said Marcus Lemonis, executive chairman and principal executive officer.
Bed Bath & Beyond aligns itself with value
The online Bed Bath & Beyond platform has mostly finished with the process of whacking vendors and skus, which it began over a year ago. During the second quarter, it focused on addressing assortment gaps in namesake categories like bedding and bath.
The goal is to remind the legacy Bed Bath & Beyond customer what they experienced at the store level, Lemonis said. The selection is “far more thoughtful,” with a focus on Back to Campus and other key seasonal and life events. In addition to core BBB categories in soft home, kitchen and entertaining, décor, and storage, the site will continue to offer value-priced rugs and furniture.
The first neighborhood-format Bed Bath & Beyond Home will open in Nashville on Aug. 8 in a former Kirkland’s Home location. The concept emphasizes top-of-bed, bath and tabletop while also offering a curated mix of Kirkland’s core categories. It does not offer appliances or vacuums, Lemonis said.
See also: Kirkland’s rebrands to reflect its new retailing strategy
As more BBB Home concepts open in converted Kirkland’s locations, there will be a larger collaboration between brands and vendors featured on the Bed Bath e-commerce site and the in-store merchandise mix. “The idea is to build an endless aisle over time,” said Lemonis.
Overstock shoots for upmarket share
Overstock has been finding its feet since its relaunch in March 2024, and Beyond Inc. is zeroing in on the site’s core customer base: households with incomes of $100K and up.
“This is not an aspirational shopper,” said Lemonis. “It’s not a younger person’s [shopping destination]; it never has been. We are selling more designer handbags and more designer shoes than anyone would have guessed.”
Based on customer response to the recent addition of luxury accessories and shoes, Overstock is now expanding into high-end jewelry and watches. Simultaneously, the mix is adding rugs and living room pieces at price points that more affluent consumers can comfortably afford. The strategy is to lure shoppers onto the platform with Gucci bags and Rolex watches, then target them with higher-end furniture such as $12,000 patio sets.
That said, Overstock will continue to offer overruns, liquidated merchandise and distressed inventory to maintain the brand’s “halo effect,” Lemonis said.
“We’re really starting to separate ourselves from the customer who had been Bed Bath and [the customer who traditionally was] Overstock,” he added, noting that when Overstock was at its peak in the pre-Covid era it generated $1.5 billion in annual revenue.
