Overstock bought Bed, Bath, & Beyond. What's next for shoppers? CEO weighs in on rebrand
Overstock.com is officially Bed, Bath & Beyond – emphasis on the “beyond.”
After winning a $21.5 million bid for the brand’s intellectual property, e-commerce company Overstock launched the new Bed, Bath & Beyond in the U.S. on Tuesday with the unveiling of its new website and app. Overstock.com visitors will now be redirected to BedBathandBeyond.com, and the company is celebrating the shift with various promotions.
CEO Jonathan Johnson said the new name will usher in a new era for the brand that is focused on more products at affordable prices.
“We've saved an iconic brand, and we’ll take it into the future,” Johnson told USA TODAY. "I think what the customer will get from the new Bed, Bath & Beyond when we launch on Aug. 1 is a bigger and better beyond. We just have a much better set of products that we offer than what Bed, Bath has historically."
Why did Overstock buy Bed, Bath and Beyond?
Johnson has said he’s been asked multiple times to change Overstock’s name, which reflects the company’s liquidation model that it abandoned 20 years prior.
The company had been looking at the Bed, Bath & Beyond brand for “a number of years,” Johnson said.
“We liked its customers, they were deal seekers like our customers are,” he said. But “we didn't like its brick-and-mortar stores. We didn't like the inventory. Its business model was very different than ours.”
When Bed, Bath & Beyond’s bankruptcy gave Overstock the chance to buy the brand name without the stores, the company jumped on the deal. Overstock was the first to bid for Bed, Bath & Beyond's IP and set the minimum price. The old Overstock brand is set to sunset over time.
New products coming to Bed, Bath & Beyond’s website
The company’s purchase has already been a boon for the company by attracting new partners.
Johnson noted that more suppliers are willing to open their entire product catalog with the company after the Bed, Bath & Beyond deal was announced. Johnson credited the name change, noting that some suppliers were hesitant to work with a distribution company associated with liquidation. The name also turned away potential customers.
“We have been self-aware enough as Overstock to know that no bride and groom would put on their wedding announcement, ‘Registered at Overstock.com.’ And yet I get wedding announcements all the time with people saying 'Registered a Bed, Bath & Beyond,'” he said. “It's a brand that people like, that they're happy to say they shop at. I think it's the same for suppliers. They're happy to have us as one of their distribution channels.”
Since the deal was announced, Johnson said the company has added over 600,000 new products to its website.
While customers can expect to find the typical bed, bath and kitchen products Bed, Bath & Beyond is known for, Johnson said they can also expect a "much bigger, better beyond" including patio furniture, area rugs and more.
"The categories that Overstock has been so strong in in the past will be there," he said.
Is Bed Bath and Beyond getting rid of their coupons?
Johnson said Bed, Bath & Beyond customers will see fewer promotions but better pricing under the new owners.
“We’ll still have promotions and do coupons. But the good news is that our pricing is better, sharper than Bed, Bath’s has historically been. And so I think customers will see that it's a great place to shop,” he said.
To celebrate the rebranding, Bed, Bath & Beyond is offering a 25% coupon for anyone who downloads and shops through the new mobile app, available for iOS and Android.
The company is also rebranding its Club O loyalty program as the Welcome Rewards program. To incentivize previous Bed, Bath & Beyond customers to make the switch, the company is reinstating exclusive coupons and up to $50 of unused Welcome Rewards points lost after the original Bed, Bath & Beyond went bankrupt and offering active members a free one-year membership to the new loyalty program.
Members of Club O, Overstock's former loyalty program, will also receive a 20% off coupon and have their membership and rewards transferred to Welcome Rewards.
This article originally appeared on USA TODAY: Is Bed, Bath & Beyond still open? Overstock moves brand online
