Bed Bath & Beyond Chief Executive Mark Tritton states buyers are progressively avoiding the nationwide brand and aiming to attempt personal labels, which are typically cheaper.
“In 2020 alone, we’ve seen a migration to owned brands across the industry, not just in home,” Tritton informed CNBC’s Courtney Regan on Thursday early morning. “Customers are open to new brands, exploring new brands, from trusted resources and retailers that they have a great relationship with. … We believe Bed Bath and Beyond is well poised to be one of those.”
The big-box merchant revealed Wednesday it will introduce 6 of its own brand names in the next 6 months, intending to get those products on racks and on its site ahead of the hectic back-to-school and back-to-college season. It’s preparation to go for least 10 personal labels in the next 2 years, while it concurrently starts redesigning about 450 Bed Bath & Beyond shops.
Later this month, Bed Bath & Beyond will debut Nestwell, which offers bed and bath items. That will be followed by the launch of Haven, a bath brand name, in April.
Tritton stated the business likewise has a personal brand name called Simply Essential in the works, which will offer more than 1,000 necessary home products at competitive rates.
As it starts its own brand name rollout, Bed Bath & Beyond has stated it anticipates private-label sales will grow to represent 30% of its organization within 3 years, up from 10% today. The business stated these efforts need to likewise assist increase its success.
“We’ve built … a game plan for our store associates to communicate our new brands, the benefits, and how they can build real joy in our customers homes,” Tritton stated.
Bed Bath & Beyond shares were falling less than 1% on Thursday early morning. Its stock is up more than 180% over the previous year. Bed Bath & Beyond has a market cap of $3.5 billion.
