The brick-and-mortar retailer will launch at least eight new internal brands during its 2021 fiscal year. Six of the new brands will debut in the first six months of the fiscal year.
The company said its launch of thousands of products designed in-house would allow it to cut down on costs and capture a larger portion of the $180 billion home goods market. Bed Bath & Beyond CEO Mark Tritton, who employed a similar strategy during his stint as a merchandising executive at Target, said the plan represented the “most significant transformation of our product assortment in a generation.”
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“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 said in a statement.
Bed Bath & Beyond has overhauled its operations in recent months in a bid to jumpstart sales. The retailer previously announced plans to shutter approximately 200 stores and remodel others in the coming years while embracing digital sales and streamlined, affordable product offerings.
The company said it expects its in-house brands to account for 30% of its overall sales within the first three years of launch, up from 10% of sales at present.
Upcoming launches include “Nestwell,” which will consist of bed and bath goods related to the sleep category, and “Simply Essential,” which will offer everyday household goods at low prices. “Haven,” an existing bath brand, will relaunch in April with a focus on “spa-inspired assortment of organic cotton products,” according to a press release.
The brand launches were announced as Bed Bath & Beyond faces intense competition from Amazon and Target in the home goods market.
In January, Bed Bath & Beyond reported that quarterly says dropped 5% for the quarter ending on Nov. 28. However, online sales rose 94% in the same period.
The Associated Press contributed to this report.
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