Bed Bath & Beyond to Launch at Least 8 New Owned Brands in 2021

March 9, 2021  by Laurie Northington in Business Strategy, Industry   

Marking another major step in its recently announced comprehensive growth strategy, the company will launch thousands of new products available only at Bed Bath & Beyond to drive differentiation, preference, and authority in the $180 billion Home market.

The Owned Brands will connect with the core customer and category segments across bed, bath, kitchen/dining, storage/organization, and home décor, all key destination categories for the Bed Bath & Beyond banner that represent over 60% of its revenue. The company will also launch its first cross-category, opening price point Owned Brand, with the first six new Owned Brand assortments launching ahead of the important Back to College and Holiday seasons.

Bed Bath & Beyond is number one in terms of consumer brand association in bed, bath and kitchen, as well as a leader in other home categories. The company expects its new Owned Brands to further enhance its authority in these key destination categories that have been driving growth throughout 2020. The sales penetration of Owned Brands is expected to grow from approximately 10% to approximately 30% within the first three years, and drive improvement in gross margin as a result of the company's ability to strategically design to cost, source at scale and provide great everyday value.

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 Mark Tritton, president and CEO. “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.”

"In 2020, we rebuilt and stabilized the foundations of our business while creating growth. As we enter our company's 50^th 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," added Tritton.