Bed Bath & Beyond’s Rapid Propagation of Private Brands
Women s Wear Daily (WWD) 3 hrs ago David Moin
One of retail’s most dramatic private brand buildups is occurring at Bed Bath & Beyond and it’s happening fast.
BB&B expects that within three years private brands, or what the company refers to as “owned brands,” will represent 30 percent of its business, up from the current 10 percent. This year alone at least eight owned brands are being introduced simultaneously with efforts at eliminating product redundancies and unproductive stock keeping units, remodeling stores and closing others.
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The reimagined portfolio of owned brands in the works integral to BB&B’s grand turnaround scheme covers the retailer’s core segments bed, bath, kitchen/dining, storage/organization and home décor which represent more than 60 percent of revenues.
Dive Brief:
To strengthen its merchandising position, Bed Bath & Beyond on Thursday announced it s brought in Stacey Shively as senior vice president and general merchandise manager for home, effective Monday.
In her role, reporting to Chief Merchandising Officer Joe Hartsig, she ll help accelerate Bed Bath & Beyond s merchandising strategy around categories like bed, bath, dining, organization and seasonal, according to a company press release.
Shively has more than 25 years of retail experience, most recently serving as senior vice president and general merchandise manager of J.C. Penney s home division. Prior to that, she worked at Target, Bluestem Brands and Dollar Tree.
Bed Bath & Beyond launches Simply Essential to rival Amazon and Target’s bargain price point
Photo by: Mike Kalasnik/Flickr (CC BY-SA 2.0) Tuesday, May 11, 2021 5:29 AM UTC
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Products for bargain hunters
The company said that the price range for Bed Bath & Beyond’s newest in-house brand is perfect for shoppers who usually find cheaper items in either Target or Amazon. With that said, it is also aiming to rival the said retail giants for quality but affordable items.
As part of its plan, Bed Bath & Beyond will also expand its own label that has been more profitable for the company compared to selling third-party brands. CNN Business reported that the new label that the retail store is launching is called Simply Essential.
Dive Brief:
Bed Bath & Beyond on Monday launched its third private label of the year, Simply Essential.
The brand carries more than 1,200 products in the bed, bath, home decor, storage and organization, and kitchen and dining categories at opening price points, the retailer said in an announcement emailed to Retail Dive.
The entire line is priced under $200, with kitchen basics, like ladles and serving spoons, starting at $1.
Dive Insight:
Bed Bath & Beyond is quickly moving along in its plan to launch at least eight owned brands by late February, something that is part of its broader three-year transformation strategy.
Prior to Simply Essential s launch Monday, the retailer earlier this spring introduced home brand Nestwell and relaunched bath brand Haven.
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Bed Bath & Beyond is approaching its $250 million supply chain investment through a strategy that blends physical with digital.
ERP upgrades, inventory management systems, distribution centers and store-to-fulfillment conversions are all parts of modernizing a supply chain previously described as primitive.
Currently, it takes 35 days for the retailer to replenish its stores with inventory. The goal is under 10 days.
Bridging that 25-day gap starts with regional distribution centers, according to Hartmann.
It s a common-sense model, the COO said in January. Bed Bath & Beyond will move away from its network of dozens of cross docks that consolidate vendor shipments, toward regional warehouses that replenish stores.