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Bed Bath & Beyond Inc. BBBY launches the third of its Owned Brands line planned to roll out in the second quarter of fiscal 2021 — Squared Away. The company announced plans to launch the Squared Away brand in June 2021 along with two other brands, Our Table and Wild Sage, which have been launched already. All three brands are launched ahead of the back-to-college season to make the most of the demand as customers prepare to return to colleges and schools.
Squared Away mainly includes storage, organization and laundry care solutions for any home, apartment or dorm room. The brand’s products are carefully designed to meet customers’ needs for creating and maintaining clean, organized, and clutter-free living spaces. It offers nearly 300 storage items for the kitchen, closet, bathroom and organization throughout the home.
The products offered by Our Table, Wild Sage and Squared Away are ideal for college students to get an organized set-up at their campuses. The launch of Squared Away was also accompanied by the company’s roll-out of the “College, Happier” campaign, making it easy for students to save an additional 20% on their college-related purchases. The campaign also includes an improved Pack & Hold service to deliver purchases made to the college spaces.
The Squared Away marks the company’s sixth Owned Brand launch of its target of introducing at least eight Owned Brands by the end of February 2022. As part of its three-year transformation strategy, the company has revealed plans to launch at least 10 Owned Brands in the next two years (fiscal 2021 and 2022).
In the first quarter of fiscal 2021, it launched the Simply Essential, Haven and Nestwell Owned Brands as part of the aforementioned plans. The Simply Essential assortment line has been thoughtfully designed for meeting the needs across every room of a house. It is the company's first full-line assortment at opening price points. Nestwell is an assortment line, including quality bed and bath goods. The Haven is a bath brand, which offers spa-inspired organic cotton products and more.
The company’s transformation plan focuses on removing product redundancies, and unproductive stock keeping units, store remodels and store closures. It expects Owned Brands to cater to consumer needs across segments such as bed, bath, kitchen and dining, storage and organization, and home decor. It remains focused on launching several private-label brands, which are likely to contribute more than 60% to its revenues.
Management expects the sales penetration of Owned Brands to grow from 10% to 30% in the first three years. It also expects to boost the gross margin by managing costs and sourcing. Another major step in its comprehensive growth strategy is its plan to launch thousands of products, exclusively available only at Bed Bath & Beyond.
Bed Bath & Beyond is focused on boosting consumers’ shopping experience by offering a wide range of home-related merchandise. The expansion of the Owned Brands assortment is expected to create substantial opportunities for long-term growth. This along with its store-optimization efforts as well as digital and omni-channel expansion positions the company for growth.
Shares of Bed Bath & Beyond closed 1.7% higher, following the launch of Squared Away. The Zacks Rank #3 (Hold) stock has risen 22.7% in the past three months against the industry’s 10.6% decline.
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