As An Online Retailer, Bed Bath & Beyond Is Returning To The Market

(CTN News) – After declaring bankruptcy earlier this year, Bed Bath & Beyond has relaunched its website under its new owner, Overstock.com.

Jonathan Johnson, CEO of Overstock, said the goal is “to create a business that can soar” by combining Bed Bath’s brand name with Overstock’s business model.

The new website will offer customers up to $50 in loyalty reward points reinstated from former Bed Bath & Beyond customer accounts, as well as a number of other benefits, including 20% off, the transfer of membership and all current rewards from Club O to a new Welcome Rewards loyalty program, and 25% off initial purchases for those downloading the new Bed Bath & Beyond mobile application.

Johnson had this to say when asked why Overstock is adopting the Bed Bath & Beyond name: “People view Overstock as liquidation, which is what we were 25 years ago when we started, but that is not what we have been for the past two decades.”

Johnson commented, “We have looked at Bed Bath and Beyond with jealousy for several years; we liked their name, and it was a well-known brand.”

In June, Overstock announced that it had purchased $21.5 million worth of intellectual property and digital assets from Bed Bath & Beyond.

After years of unsuccessful attempts to revive its long-standing home goods business, Bed Bath & Beyond filed for Chapter 11 bankruptcy protection in April. This weekend,

All Bed Bath & Beyond physical stores will close.

Last quarter, Overstock.com, a liquidator that went public in 2002, saw its quarterly net revenues decline 20% year over year to $422 million. During the same three-month period, the company lost $73 million. The number of active customers fell by 29% to 4.6 million during the quarter.

In the wake of the Covid-19 pandemic, Overstock’s sales fell considerably, reflected in the company’s share price declining from about $121 in August 2020 to approximately $36 at Monday’s close.

According to Johnson, an internal survey of customers indicated that Bed Bath & Beyond remains a top-five home goods retailer in North America. According to him, the new website went live recently in Canada and has been well received.

Nevertheless, the relaunched Bed Bath website may need to rely heavily on deals and discounts in order to compete with the vast marketplace of competing online retailers, according to Neil Saunders, managing director for retail at GlobalData.

Bed Bath & Beyond used to be known for its offers and deals.

It is also possible that the new company will be hampered by the closure of Bed Bath & Beyond stores, according to Saunders.

The last thing you want to happen is for Bed Bath & Beyond to disappear from the radar. There is a need for a strategy to keep the brand alive in the minds of consumers for at least two or three years.

Johnson is confident that his company’s strategy will be successful.

“Bad management can kill companies, but it does not kill brands,” he stated. There is still a strong association between the Bed Bath and Beyond brand and the home, and it is still very well known.”

SEE ALSO:

Midday Moves: SoFi, ON Semiconductor, Disney, Sweetgreen, And More