But that presence will be inside The Container Stores
of ConsumerAffairs
For retailer Bed Bath & Beyond, the journey has come full circle. After filing for bankruptcy protection and closing all of its stores, it became a purely online retailer.
But thanks to a strategic partnership with rival The Container Store Group, the iconic home goods retailers will once again have a brick-and-mortar presence.
Part of Bed Bath & Beyonds problems may have been location. Many of its stores were in dying shopping malls, resulting in fewer customers.
Beyond said it expects to benefit from The Container Stores world-class real estate locations. It also sees an advantage when customers can once again see and touch the merchandise.
The Container Store hopes to capitalize on the Bed Bath & Beyond brand to launch designated spaces with its stores to showcase Beyonds assortment of kitchen, bath and bedroom items, which will be co-branded.
Through this collaboration, the companies hope to drive increased traffic for The Container Stores core assortment and its high-margin, solution-driven custom spaces services business. And there is a clear precedent.
Target and Disney did something similar
In 2019, Target and Disney announced plans to put small Disney stores inside select Target locations. Disney saw it as a way to expand its retail footprint while Target viewed it as a way to increase foot traffic.
Beyond and The Container Store see it as a way to support one another and make both brands stronger.
Partnerships like this further support the value of iconic brands leveraging each others assets and core competencies while improving customer conversion and retention, enhancing margins, and optimizing marketing expenses which are the principal drivers in delivering value creation and profitable growth, said Marcus Lemonis, executive of Beyond, Inc.
Overstock is part of the mix
After Beyond declared bankruptcy in 2023, online retailer Overstock.com acquired the Bed Bath & Beyond name and launched the new Bed Bath & Beyond mobile app and website.
The website features both the traditional BB&B logo and the Overstock logo, and assures shoppers that this will be a bigger, better beyond. The mobile app was also rebranded to Bed Bath & Beyond by Overstock.
The two companies see mutual benefits to the link up. Beyond will regain a physical presence at a much smaller cost.
The Container Store hopes the link up will restore it to profitable comparable over time, attracting customers with Beyonds intellectual property, customer data, network of brands, and affiliate relationships.
Photo Credit: Consumer Affairs News Department Images
Posted: 2024-10-16 19:01:34
