Dive Brief:
- Bed Bath & Beyond on Tuesday announced it launched the first private label for its BuyBuy Baby banner.
- Dubbed Mighty Goods, the brand will include baby and toddler essentials, such as apparel, bed and bath products, room decor, nursery furniture and more, according to a company press release.
- Prices start at $2, and apparel pieces come in sizes preemie to 4T.
Dive Insight:
BuyBuy Baby is launching its own brand as a way to offer baby and toddler products at a value, according to Patty Wu, executive vice president and brand president of BuyBuy Baby.
"We're always listening to what our BuyBuy Baby community wants and needs," Wu said in a statement. "That's how we know quality products at parent-friendly prices are important, and the Mighty Goods brand allows us to offer parents expanded product options through a curated line that meets their needs from newborn through toddler."
The new private label, however, comes as Bed Bath & Beyond works to realign its assortment in favor of national brands. The retailer in August laid out a turnaround plan, which in addition to closing stores and laying off staff, included discontinuing three of Bed Bath & Beyond’s private labels it recently launched. For the remaining private labels, inventory will be reduced to 20 percentage points, while national brand inventory penetration will increase by 20 percentage points.
The launch also follows Bed Bath & Beyond’s decision to not sell the baby banner after receiving multiple calls to do so, including from activist investor and Chewy founder Ryan Cohen, who has since exited his stake in Bed Bath & Beyond.
After experiencing a brief boost during the early months of the pandemic, Bed Bath & Beyond has faced declines recently. In the second quarter, the retailer reported net sales fell 28% year over year to $1.4 billion, while comparable sales declined 26%. At its BuyBuy Baby banner, comp sales fell by a “high-teens percentage” compared to an increase in the year-ago period.
As it executes on yet another turnaround plan, Bed Bath & Beyond has also faced a C-suite shakeup. Following the departure of Target veteran Mark Tritton in June, Sue Gove stepped into the CEO role in the interim and last week the appointment was made permanent. Other positions, including chief financial officer, chief merchandising officer, chief operating officer and chief stores officer have faced changes as well.
