Beyond changes direction again: BuyBuy Baby to adopt physical stores strategy
Beyond Inc., the company behind the rebranded Bed Bath & Beyond, has announced plans to reopen one physical store of BuyBuy Baby, a popular baby supplies brand, likely in Nashville. This move comes after Beyond Inc. acquired BuyBuy Baby for $5 million in February, following its acquisition of Bed Bath & Beyond for $21.5 million in 2023.
The revival of BuyBuy Baby's physical presence marks a significant step for Beyond Inc., as all BuyBuy Baby locations were previously closed. This decision aligns with Beyond Inc.'s goal to return BuyBuy Baby to its original growth partner - Bed Bath & Beyond.
In addition to the BuyBuy Baby reopening, Beyond Inc. has forged a strategic partnership with Kirkland's, a furniture and home company. This partnership includes operating Bed Bath & Beyond stores and shop-in-shops within Kirkland's stores. Beyond Inc. has also invested $25 million in Kirkland's and owns a 40% stake in the company.
Marcus Lemonis, Executive Chairman and Principal Executive Officer of Beyond Inc., has expressed his commitment to keeping BuyBuy Baby within the company, stating that it is an asset that needs to be part of the company at all costs.
Beyond Inc. is also introducing a new brand extension, "Bed Bath & Beyond Home," which will offer merchandise similar to what Bed Bath & Beyond sells online. The company compares the Bed Bath & Beyond Home concept to TJX's Home Goods.
Despite the expansion and rebranding efforts, Beyond Inc. has faced challenges. Q1 net sales plunged nearly 40% year over year to $231.7 million, and the number of active customers dropped 21%. However, the company's net loss narrowed 46% to $40 million in Q1, and the gross margin expanded 560 basis points to 25.1%.
The reopening of the Overstock site, which was shut down after Beyond Inc. acquired Bed Bath & Beyond in 2023, is not currently part of the company's plans. Instead, Beyond Inc. plans to open at least four Overstock stores.
In a separate move, Beyond Inc. sold a majority stake in Zulily earlier this year for $5 million, after acquiring it last year for $4.5 million.
The Bed Bath & Beyond Home stores and potential Kirkland stores will offer a curated, non-dumpster looking environment, providing customers with a more appealing shopping experience.
As Beyond Inc. continues to evolve and expand its portfolio, it remains committed to improving its financial performance and providing a high-quality shopping experience for its customers.
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