Dive Brief:
- Bed Bath & Beyond on Tuesday launched a new private label, Everhome, which will be available in stores and on the retailer’s website and app.
- The collection, which takes on a coastal-inspired aesthetic, includes bedding, bath linens and accessories, decor and outdoor furniture, according to a company press release.
- Everhome is Bed Bath & Beyond’s ninth private label launch since announcing in late 2020 its plan to debut more than 10 private labels.
Dive Insight:
Bed Bath & Beyond is moving forward to complete its goal of launching over 10 private labels despite a slowdown in the home goods category.
When the retailer initially announced its plan in October 2020, the overall home sector was booming as consumers invested more in the spaces they were spending the majority of their time in. But as consumers began feeling more comfortable leaving their homes, helped by the widespread availability of vaccines, spending started to shift away from the home and to other areas like dining out and entertainment.
Bed Bath & Beyond in its most recent quarter reported net sales fell 22% year over year to $2.1 billion. The retailer suffered from about $175 million in lost sales as a result of out-of-stocks at its namesake banner during the quarter. Bed Bath & Beyond also reported a $159 million net loss during the quarter from a profit of $9 million in the year-ago period.
The declining demand in the overall home goods category also comes as consumers are starting to pull back on discretionary spending in light of inflation and other economic uncertainty. However, CEO Mark Tritton last month remained confident in the retailer’s plan to introduce additional private labels and said that it may even bode well for Bed Bath & Beyond as consumers become more cautious about spending.
“Through our owned brands, we introduced a new suite of products to differentiate Bed Bath & Beyond, while also creating new opening price points to remain competitive, especially now in light of inflation pressures,” Tritton said on a call with analysts discussing fourth quarter results.
