Even though Beyond Inc. and Kirkland’s financial collaboration is still in the early stages of development, efforts are already being made to bring Bed Bath & Beyond back to life in physical stores.
Executives from both businesses provided additional insights into the future of the Bed Bath & Beyond brand in the physical retail sector today at Beyond Inc.’s Investor Event in Manhattan.
While deciding which stores to switch to the Bed Bath & Beyond neighborhood format, Kirkland’s is looking at locations where its own chain doesn’t have a particularly strong presence.
Amy Sullivan, the CEO of Kirkland, said investors that the company was “looking at the East Coast,” specifically mentioning New Jersey.
Brick, Rockaway, Deptford Township, Watchung, Marlton, and May’s Landing are the six Kirkland’s locations in New Jersey, the state where the first Bed Bath & Beyond was based.
Sullivan restated that early 2025 is probably when the first five-bedroom, bathroom-and-beyond conversions will open.”After piloting, we’ll fast-forward from there.”
Marcus Lemonis, executive chairman of Beyond Inc., said the renovated stores will have a curated product mix and a smaller footprint than the original Bed Bath & Beyond business in its prime.
We are aware that the client does not desire a brand-new, shiny, contemporary experience. With the white formica shelves and bins, you should anticipate that these stores would resemble those from fifteen years ago,” he continued.
The Container Store might be the first to reinstate BBB.
Shareholder approval is still pending for Beyond Inc.’s proposed $40 million agreement with The Container Store. However, Lemonis stated today that it may “happen at a little faster” to revive Bed Bath & Beyond’s physical presence within the chain of storage solutions locations.
According to him, The Container Store will feature BBB merchandise in stores that are co-branded and have unique merchandise, rather than only carrying a few items from the company’s main categories.
He continued, “I want to make the planogram [clearly] recognize Container Store’s products and services, with Bed Bath as a supplement to that – not as a 1,000 sq. ft. corner in the store.” We have a strong voice when it comes to our expectations.
Additional important lessons learned from today’s investor event
- Talks are in progress to include national brands that were formerly carried by the original Bed Bath & Beyond in the assortments at the co-branded Container Store and the converted Kirkland’s stores.
- All stores that use the Bed Bath brand, whether they be foreign Bed Bath & Beyond locations, co-branded Container Stores stores, or Kirkland’s conversions, will be purchased and merchandised by the Kirkland’s team.
- The business is in negotiations for a comparable agreement in South Korea and has already obtained licensing agreements for Bed Bath & Beyond outlets in Mexico.
- According to the terms of their agreements, Kirkland and The Container Store must remove their slower-turning merchandise from Beyond Inc.’s Overstock.com site.
- Additionally, after their current card relationships expire, Kirkland’s and The Container Store will have to switch to the Beyond credit card program and participate in the future Beyond global reward program.
Lemonis stated, “We think that Bed Bath returns to the customer physically closer and stronger.”
