Bed Bath & Beyond begins private label transformation
Bed Bath & Beyond’s private brand renaissance is underway with six new private brands launching in the next six months, including the Nestwell, an assortment for the sleep category; Haven in the bath category; and Simply Essential, which the retailer said crosses categories.
Last year the home goods retailer announced it would be introducing 10 new owned brands in the next two years, part of a three-year transformation plan for the retailer under new leadership headed by former Target chief merchant Mark Tritton. Store Brands covered the new strategy in a November issue cover story.
The Union, N.J.-based retailer updated its rollout plans saying that at least eight new owned brands will launch in 2021, with six coming in the first six months of the fiscal year. The company said it marks the biggest change in assortment in a generation for the store.
Store Brands has reached out to the retailer for more information, but Bed Bath & Beyond did share some information on three of the new owned brands. Nestwell launches this month, bringing bed and bath goods that fit a growing sleep category. In April, Haven will launch a line of spa-inspired organic cotton products in the bath category, followed by SImply Essential, a flagship, cross-category brand. Simply Essential will look to be an opening-price-point, value brand that includes more than 1,000 household essentials and functionally designed products.
The entire new assortment of owned brands aims to drive differentiation, preference and authority in the $180 billion home market for BB&B. The products will cross bed, bath, kitchen and dining, storage and organization, home decor. These key categories represent more than 60% of its revenue.
The goal of its store brands is to grow from approximately 10% to 30% sales penetration for the company within the first three years and drive improvement in gross margin.
"In the next six months, we will deliver the most significant transformation of our product assortment in a generation, by providing our customers with inspirational owned brands across every room in their homes,” said Tritton. “Available only at Bed Bath & Beyond, our new range of owned brands will infuse purposeful innovation and affordable quality to drive gross margin and category dominance. Combined with our continued investment in the key national brands consumers know and love, this will create a platform for sustainable long-term growth and true authority in the home market, while helping customers realize the potential to create a happier home in each and every room.”
Tritton added that last year was a rebuilding year and they worked to stabilize the foundations of the business. “As we enter our company's 50th year, we look forward to welcoming our customers to the new Bed Bath & Beyond, with a truly customer-inspired assortment, reimagined stores, an enhanced omni-always, digital-first shopping experience, and exceptional value across every price point,” he said.
Private brands are playing a monster role in Bed Bath & Beyond’s rebuild and three-year transformational strategy. New owned brands can be expected to launch each month for the next six months, an example of the company’s new data-driven growth strategy that will include resetting the merchandising assortments, remodeling 450 stores, enhancing a digital-first, omnichannel approach to shopping, and introducing a modern approach to marketing and customer engagement.