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With majority time being spent indoors due to the pandemic, there is more focus on making homes an enjoyable and comfortable space. Consumers have been investing in making homes well equipped for work-from-home and entertainment needs. Companies such as Bed Bath & Beyond Inc. BBBY are cashing in on this new-found appreciation for the home space by expanding their assortments. This leading retailer of home furnishing products and other domestic merchandise announced the launch of Simply Essential. This new line consists of more than 1,200 essential items, designed to suit various home needs. Markedly, the launch forms part of the company’s three-year transformation plan. Let’s dive deeper.
Boosting Product Strength is a Prudent Move
Bed Bath & Beyond is in an assortment expansion spree. As part of its three-year transformation plan, the company will launch at least eight new Owned Brands by the end of February, 2022. Moreover, the company had earlier stated that it plans to introduce at least 10 Owned Brands in the next two years. Progressing on its growth strategy, the company announced the launch of the Simply Essential line. Exclusively available at Bed Bath & Beyond, the new assortment line has been thoughtfully designed for meeting needs across every room of a house.
Simply Essential is the company's first full-line assortment at opening price points. This assortment also marks the third Owned Brand launched by the company this year. In March, the company launched its private label brand — Nestwell — an assortment of quality bed and bath goods. The company also relaunched the Haven bath brand in April, which offers a spa-inspired assortment of organic cotton products and more.
The Simply Essential line underpins Bed Bath & Beyond's commitment to meet the needs of a wide range of customers with new value-led options, eliminating gaps in lower price brackets. Apart from being wallet-friendly, these products do not compromise on design or performance. The new opening price point assortment forms a core part of Bed Bath & Beyond's three-year growth strategy.
All products under the Simply Essential line will be launched this year. It includes products ranging from the company’s top five destination categories — bed, bath, kitchen and dining as well as storage and organization. Moreover, it will extend the company's competitive positioning in areas such as kitchen gadgets. Under the new assortment, kitchen basics start at $1, including products like ladles and serving spoons, while pillows are priced at $5. Markedly, the entire line is priced under $200, with many products under $50. Simply Essential products are available through Bed Bath & Beyond’s omnichannel facilities, including buy online and pickup in-store or curbside, regular or same-day delivery. The products are also available for in-store shopping, across Bed Bath & Beyond store locations in North America.
Clearly, Bed Bath & Beyond is focused on boosting consumers’ shopping experience by offering a wide range of home-related merchandise. Its moves to expand Owned Brands assortment is likely to create substantial opportunities for long-term growth. Such strategies along with the company’s efforts that focus on expanding digital capacity, omni-channel offerings and marketing capabilities are likely to keep the company in good shape in the forthcoming periods.
Markedly, this Zacks Rank #3 (Hold) stock has surged 27.5% in the past six months compared with the industry’s 23.6% growth.
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