Will a Price Reset and Store Refreshes Give Bed Bath & Beyond / The Container Store Any Momentum?
With the combined Bed Bath & Beyond / The Container Store concept edging along a “phased integration” which was initially kicked off in late April — across 98 former The Container Store locations — that integration plan is now being accelerated to include a significant price reset, as Chain Store Age noted.
The slated price reset will be wide-ranging, with thousands of SKUs being involved and reductions averaging up to 25%, according to sources. CSA quoted Bed Bath & Beyond CEO Marcus Lemonis on the nature of the discounting.
“This is not a promotion, a temporary sale or a marketing event. It is a deliberate move to better align our prices with the value our customers deserve,” Lemonis stated.
The combined concept stores saw an early example of the co-branding effort open in Fort Worth, Texas, in May.
“The new concept combines The Container Store’s organizing solutions, design services and expertise with Bed Bath & Beyond’s home essentials, resulting in a ‘more complete home destination’ for consumers,” CSA detailed.
Reaction to the movie appeared to be quite positive on the co-branded social media accounts, with a few users chiming in to say how enthused they were about being able to declutter their homes on a budget and that accessibility and affordability were always welcome at the retail level.
Not everyone was so pleased, however, with one user saying that Bed Bath & Beyond would add a bland note to a previously well-curated Container Store experience. A second critic indicated that they were sad about the collaboration, as “BBB is junky and cluttered. CS is aspirational and elevated.”
These moves follow an ongoing stabilization effort helmed by Lemonis, with Bed Bath & Beyond, Inc. seeing relatively strong performance within its Q1 report card, issued April 27. That quarterly report outlined net revenue of $248 million (the first quarter of significant revenue growth in nearly five years), gross profit of $59 million, and a net less of $16 million — the latter metric a $24 million improvement YoY.
“Our first quarter results show that the work we’ve been doing to stabilize and rebuild the business is taking hold,” Lemonis said at the time.
“Our improving results and strategic advancements, including our most recent announcement to acquire The Container Store, Elfa and Closet Works will
position us well to deliver long-term shareholder value aligned to our Everything Home 3 pillar ecosystem,” he added.