Bed Bath & Beyond begins private label transformation
Bed Bath & Beyond’s private brand renaissance is underway with six new private brands launching in the next six months, including the Nestwell, an assortment for the sleep category; Haven in the bath category; and Simply Essential, which the retailer said crosses categories.
Last year the home goods retailer announced it would be introducing 10 new owned brands in the next two years, part of a three-year transformation plan for the retailer under new leadership headed by former Target chief merchant Mark Tritton. Store Brands covered the new strategy in a November issue cover story.
The Union, N.J.-based retailer updated its rollout plans saying that at least eight new owned brands will launch in 2021, with six coming in the first six months of the fiscal year. The company said it marks the biggest change in assortment in a generation for the store.
Store Brands has reached out to the retailer for more information, but Bed Bath & Beyond did share some information on three of the new owned brands. Nestwell launches this month, bringing bed and bath goods that fit a growing sleep category. In April, Haven will launch a line of spa-inspired organic cotton products in the bath category, followed by SImply Essential, a flagship, cross-category brand. Simply Essential will look to be an opening-price-point, value brand that includes more than 1,000 household essentials and functionally designed products.
The entire new assortment of owned brands aims to drive differentiation, preference and authority in the $180 billion home market for BB&B. The products will cross bed, bath, kitchen and dining, storage and organization, home decor. These key categories represent more than 60% of its revenue.
The goal of its store brands is to grow from approximately 10% to 30% sales penetration for the company within the first three years and drive improvement in gross margin.