Bed Bath & Beyond is returning to brick and mortar stores — at a rival
The Container Store just got a financial lifeline from former rival Bed Bath & Beyond.
New York (CNN) — Bed Bath & Beyond is coming back to a physical store near you after going out of business last year. But this time, it’s taking up space at a rival.
Beyond Inc., which bought the defunct retailer out of bankruptcy, is investing $40 million in the Container Store and giving the home goods and former competitor a much-needed lifeline as it struggles with its own financial issues.
As part of the investment, Bed Bath & Beyond branded kitchen, bath and bedroom products will soon be sold at the Container Store’s 102 locations.
The partnership aims to “improve customer experience utilizing both the iconic” Bed Bath & Beyond and the Container Store names, a press release said, which are two of the most recognizable names in shopping that have fallen into a financial mess in recent years.
In May, the Container Store began a strategic review of its business as it struggles with slumping sales and hasn’t posted a profit in three years. A few months later, the chain said it would stop offering financial guidance as it searched for help.
For Bed Bath & Beyond (BYON), its rebirth from a bankrupt physical retailer to an e-commerce giant hasn’t lived up to its expectations. Last year, its name and digital assets were purchased by Overstock.com, prompting parent company Beyond Inc. to ditch the Overstock brand. However, that decision was reversed in July.
“Through the licensing of the Bed Bath & Beyond brand, the Container Store will enhance their store format and current general merchandise offering by incorporating the most popular Bed Bath & Beyond products to drive improved financial performance while providing customers a more comprehensive product offering for their home and organizational needs,” said Marcus Lemonis, Beyond Inc.’s executive chairman, in a release.
Shares of the Container Store (TCS) soared 40% in premarket trading Wednesday.
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