UNION, N.J., March 3, 2021 /PRNewswire/ -- Bed Bath &
Beyond (Nasdaq: BBBY) today announced the biggest change in its
product assortment in a generation, with plans to launch at least
eight new Owned Brands in fiscal 2021, with six of these being
launched sequentially in the first six months of the fiscal
year. 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.
These 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.
Mark Tritton, President &
CEO, said, "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. 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
50th 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."
Accelerating the Comprehensive Growth Strategy
The Company plans to introduce at least 10 Owned Brands in the next
two years, including launching a new Owned Brand assortment every
month in the first half of the 2021 fiscal year. The plans are part
of a comprehensive, data-driven growth strategy that includes
resetting the merchandising assortment by categories and rooms,
remodeling approximately 450 stores, enhancing the digital-first,
omni-always shopping experience and introducing a modern,
360-degree approach to marketing and customer engagement. As
part of the accelerated transformation program, the Company is also
removing thousands of under-performing labels, brands and products
across the core destination categories which account for the
majority of its assortment.
The transformational Owned Brands program will start later this
month with the launch of Nestwell™, a highly relevant assortment of
quality bed and bath goods that will build authority in the growing
sleep category. The Company also plans to relaunch its Haven™
bath brand in April, providing a spa-inspired assortment of organic
cotton products and more, to help customers create their own bath
sanctuary. In addition, the Company will also launch Simply
Essential.™, a new Owned Brand assortment at opening price point,
that will include more than 1,000 hard-working household essentials
and highly functional, well-designed products at great value across
multiple destination categories and rooms.
About the Company
Bed Bath & Beyond Inc. and
subsidiaries (the "Company") is an omnichannel retailer that makes
it easy for our customers to feel at home. The Company sells a wide
assortment of merchandise in the Home, Baby, Beauty and Wellness
markets. Additionally, the Company is a partner in a joint venture
which operates retail stores in Mexico under the
name Bed Bath & Beyond.
Bed Bath & Beyond operates websites at bedbathandbeyond.com
and bedbathandbeyond.ca.
Forward-Looking Statement
This press release contains
forward-looking statements, including, but not limited to, the
Company's progress and anticipated progress towards its long-term
objectives, plans with respect to potential asset sales, as well as
more generally the status of its future liquidity and financial
condition. Many of these forward-looking statements can be
identified by use of words such as may, will, expect, anticipate,
approximate, estimate, assume, continue, model, project, plan,
goal, and similar words and phrases, although the absence of those
words does not necessarily mean that statements are not
forward-looking. The Company's actual results and future financial
condition may differ materially from those expressed in any such
forward-looking statements as a result of many factors. Such
factors include, without limitation: general economic conditions
including the housing market, a challenging overall macroeconomic
environment and related changes in the retailing environment; risks
associated with COVID-19 and the governmental responses to it,
including its impacts across the Company's businesses on demand and
operations, as well as on the operations of the Company's suppliers
and other business partners, and the effectiveness of the Company's
actions taken in response to these risks; consumer preferences,
spending habits and adoption of new technologies; demographics and
other macroeconomic factors that may impact the level of spending
for the types of merchandise sold by the Company; civil
disturbances and terrorist acts; unusual weather patterns and
natural disasters; competition from existing and potential
competitors across all channels; pricing pressures; liquidity; the
ability to achieve anticipated cost savings, and to not exceed
anticipated costs, associated with organizational changes and
investments, including the Company's strategic restructuring
program; the ability to attract and retain qualified employees in
all areas of the organization; the cost of labor, merchandise and
other costs and expenses; potential supply chain disruption due to
trade restrictions, and other factors such as natural disasters,
pandemics, including the COVID-19 pandemic, political instability,
labor disturbances, product recalls, financial or operational
instability of suppliers or carriers, and other items; the ability
to find suitable locations at acceptable occupancy costs and other
terms to support the Company's plans for new stores; the ability to
establish and profitably maintain the appropriate mix of digital
and physical presence in the markets it serves; the ability to
assess and implement technologies in support of the Company's
development of its omnichannel capabilities; the ability to
effectively and timely adjust the Company's plans in the face of
the rapidly changing retail and economic environment, including in
response to the COVID-19 pandemic; uncertainty in financial
markets; volatility in the price of the Company's common stock and
its effect, and the effect of other factors, including the COVID-19
pandemic, on the Company's capital allocation strategy; risks
associated with the ability to achieve a successful outcome for the
Company's business concepts and to otherwise achieve its business
strategies; the impact of intangible asset and other impairments;
disruptions to the Company's information technology systems,
including but not limited to security breaches of systems
protecting consumer and employee information or other types of
cybercrimes or cybersecurity attacks; reputational risk arising
from challenges to the Company's or a third party product or
service supplier's compliance with various laws, regulations or
standards, including those related to labor, health, safety,
privacy or the environment; reputational risk arising from
third-party merchandise or service vendor performance in direct
home delivery or assembly of product for customers; changes to
statutory, regulatory and legal requirements, including without
limitation proposed changes affecting international trade; changes
to, or new, tax laws or interpretation of existing tax laws; new,
or developments in existing, litigation, claims or assessments;
changes to, or new, accounting standards; foreign currency exchange
rate fluctuations; and the other factors summarized in the
Company's reports filed with the U.S. Securities and Exchange
Commission. The Company does not undertake any obligation to update
its forward-looking statements.
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SOURCE Bed Bath & Beyond Inc.