Bed Bath & Beyond’s active customer list for its online shoppers is twice as large. Its active customers have also been declining, and it said in April it had 4.8 million users. Overstock’s sales peaked in 2021, when more people bought furniture during the height of the pandemic. On Wednesday, the company said it expected its second quarter revenue to decline in the low 20% range from the year before. It has information on what Bed Bath & Beyond shoppers purchased online and how frequently they visited the website - a helpful tool as Overstock contends with its own falling sales. The acquisition also gives Overstock a trove of customer data. Now, Johnson said he did not think his company would have to do that to win vendors over. This was after months of Overstock courting them and making concessions like agreeing to hold inventory in warehouses, a rare move for the online retailer. In the week after its bid for Bed Bath & Beyond’s assets became public, Overstock added more than 100,000 bedding and bath items to its site as vendors raced to do business with the company. (Overstock did not purchase Bed Bath & Beyond’s store locations or inventory.) “We’ve been watching and watching, and last year when Bed Bath & Beyond fell on some troubles we started thinking, ‘Gee, if it goes bankrupt, we might have the opportunity to purchase what we like without purchasing what gave us pause before,’” Johnson said. Sales fell drastically as company executives made several merchandising and marketing missteps. Like many retailers, it had to temporarily close its stores and its supply chain buckled as the company sought to keep up with the demand in online shopping. On the other hand, Bed Bath & Beyond was financially battered by the pandemic. Bankers approached the company, suggesting it should purchase Bed Bath & Beyond. The tables turned when the pandemic hit and Overstock saw its sales surge.
In 2018, when Patrick Byrne, then Overstock’s CEO, wanted to sell the retail business to focus on cryptocurrency technology, Bed Bath & Beyond was a potential buyer, Johnson said. When the home-goods retailer filed for Chapter 11 bankruptcy in April, Johnson saw an opportunity for his own company. “We will probably have both logos for a little bit, but the goal is to transition as quickly as possible to Bed Bath & Beyond,” Johnson said. It’s betting Bed Bath & Beyond’s name can help change that. The company has since moved away from selling only furniture at basement bargain prices, but ultimately, Johnson said, its name was holding it back in the eyes of consumers.
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“I can’t tell you how many times I’ve been asked over the years when we’re going to change the name of Overstock,” said Johnson, who has been at the helm since 2019.įor years, has been trying to find a way to update its image as a liquidator, which is how it started in 1999. It might settle on Bed Bath & Beyond, he added, but other names are being considered, too.
Company executives plan to eventually bring back Bed Bath & Beyond’s popular wedding registry.Īs Overstock, which is based in Midvale, folds the retailer’s assets into its own operations, it is considering renaming its business entirely, said Jonathan Johnson, the company’s CEO. Overstock’s mobile app and its rewards program will also be rebranded.
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