Exclusive: Bed Bath & Beyond charts comeback with stores, coupons
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Bed Bath & Beyond is staging its next comeback. Photo: Rendering courtesy of Bed Bath & Beyond Inc.
Bed Bath & Beyond is staging a comeback — with physical stores, the return of its iconic coupon and a deal to acquire The Container Store, its president Amy Sullivan told Axios in an exclusive interview.
Why it matters: The company is reinventing itself beyond traditional retail by combining stores, services and digital — a strategy that could unlock new growth but carries execution risk.
Driving the news: Bed Bath & Beyond said Thursday it closed its acquisition of Kirkland's and signed deals to acquire The Container Store, Elfa and Closet Works, according to a shareholder letter.
- The Container Store's more than 100 locations will be folded into the company's footprint and co-branded with Bed Bath & Beyond.
The big picture: The deal — valued at about $150 million, according to regulatory filings — is expected to close in July, reflecting Bed Bath & Beyond's push to build what it calls an "Everything Home" platform.
- That includes combining retail brands like Bed Bath & Beyond, Overstock, Kirkland's and buybuy Baby with home services such as installation and customization.
- Kirkland's is being repositioned as a smaller-format, fast-turn home décor concept, while buybuy Baby could return to physical stores as early as 2027, Sullivan said.
Flashback: Bed Bath & Beyond filed for bankruptcy in 2023, shuttered its stores and was later revived online after Overstock acquired its intellectual property and rebranded under the Bed Bath & Beyond name.
What they're saying: "We really want to get into the home services business … it's a way for us to get closer to the customer and something that is almost e-commerce proof," Sullivan told Axios.
- "If you put Container Store and Bed Bath together, it becomes the destination for moving or moving into a dorm," she said.
State of play: Rather than reopening standalone Bed Bath & Beyond stores, the company is starting by integrating the brand into existing Container Store locations through dual-branded formats.
- The company is also reviving its ubiquitous 20% off coupons, which will be accepted across its brands as it rebuilds its store presence, Sullivan said.
Yes, but: The company is integrating multiple acquisitions at once.
- "The business is a bit of a hodgepodge … the vision of how it becomes a cohesive company remains somewhat unclear," said Neil Saunders of GlobalData.
What's next: Bed Bath & Beyond is shifting into what Sullivan described as "growth mode" after restructuring across its brands.
- The company plans to begin rolling out products into Container Store locations within 90 days, starting with a handful of test stores.
- A broader rollout is expected by back-to-college season in July.
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