The Rise and Fall (and Rise Again?) of Bed Bath & Beyond®
In a retail twist no one saw coming, Bed Bath & Beyond® is set to make a surprising comeback just two years after filing for Chapter 11 bankruptcy. While the brand's original big-box stores shuttered their doors in 2023, new smaller-format stores are slated to open in 2025 under a strategic partnership with Kirkland's®. This revival could signal a fresh start for the once-dominant home goods retailer.
From Humble Beginnings to Retail Powerhouse
Bed Bath & Beyond started with a single store in New Jersey in the 1970s. Its strategy of offering an extensive range of home goods at competitive prices turned it into a "category killer," dominating the homewares sector. By the 1990s, its oversized stores filled with aisles of pillowcases, cookware, and curtains became staples of American suburban life.
At its peak, Bed Bath & Beyond had more than 1,500 stores and was the go-to destination for shoppers seeking variety and affordability. But as online shopping gained traction, the retailer's slow embrace of e-commerce became a major liability.
The Impact of E-Commerce
The explosive growth of e-commerce — particularly Amazon® — disrupted the retail industry. Bed Bath & Beyond struggled to compete with online platforms that offered even larger assortments at lower prices. Competitors like Walmart® and Target® adapted faster, investing in omnichannel strategies that combined the convenience of online shopping with their physical store advantages.
By 2017, during the so-called "retail apocalypse," Bed Bath & Beyond's business model began to show cracks. The company's inability to innovate left it vulnerable to shifts in consumer behavior, and sales continued to slide year after year. The company closed stores temporarily, exacerbating financial woes and causing further losses during 2020 and 2021. By 2023, overwhelmed by debt and dwindling sales, the company filed for bankruptcy, marking what many thought was the end of an era.
The Blueprint for Revival
As reported by CRE Daily, Bed Bath & Beyond's intellectual property was acquired by Overstock.com during the bankruptcy proceedings. Overstock has since rebranded as Beyond Inc®. and is now leveraging partnerships to relaunch the Bed Bath & Beyond name. A key element of this revival is a collaboration with home decor retailer Kirkland's. Together, the companies aim to open five new smaller-format stores in 2025.
These "neighborhood" stores, designed to be 15,000 square feet — less than half the size of the original Bed Bath & Beyond locations — will serve as test sites to gauge consumer interest. According to Beyond Inc.'s Executive Chairman Marcus Lemonis, "Smaller, tighter footprints with significantly lower fixed cost models is a winning recipe," as reported by CRE Daily.
The new stores will feature curated assortments of home goods alongside Kirkland's products, emphasizing efficient space management and strategic merchandising.
Lessons from Bed Bath & Beyond
The fall of Bed Bath & Beyond underscores key lessons for businesses:
- Adaptability Matters: The rise of e-commerce reshaped consumer expectations, and companies that fail to innovate risk obsolescence. The shift to smaller stores shows a commitment to evolving with consumer preferences and economic realities.
- Brand Partnerships Are Key: Brand Partnerships Are Key: Collaborating with established brands like Kirkland's allows Beyond Inc. to expand its footprint without incurring massive overhead costs.
The first five pilot stores could pave the way for a broader rollout if successful. For now, all eyes will be on the relaunch, which holds the potential to redefine Bed Bath & Beyond's legacy and reshape its place in American retail.
References: What Went Wrong at Bed Bath & Beyond | The Rise and Fall of Bed Bath & Beyond | Bed Bath & Beyond Reopens in 2025 Thanks to Kirkland's
