Bed Bath & Beyond, the formerly bankrupt retail giant, is set to make a comeback through a strategic partnership with The Container Store. The collaboration will see Bed Bath & Beyond products being sold at The Container Store locations across the country. Beyond Inc., the owner of Bed Bath & Beyond, Overstock, and Zulily, has agreed to invest $40 million in The Container Store through a preferred equity transaction.
This investment is subject to certain conditions, including an amendment or refinancing of The Container Store’s credit facilities. The partnership aims to position The Container Store for profitable comparable store growth by leveraging Beyond’s intellectual property, customer data, network of brands, and affiliate relationships. The Container Store will utilize its 102 locations to launch appropriately sized spaces showcasing iconic Bed Bath & Beyond kitchen, bath, and bedroom products, which will be co-branded.
Satish Malhotra, CEO of The Container Store, expressed excitement about the opportunities the partnership unfolds for the company. He believes the collaboration will strengthen The Container Store’s financial position, allow them to execute their growth strategy, and deliver a best-in-class experience for customers.
Strategic partnership for profitable growth
Marcus Lemonis, Executive Chairman of Beyond Inc., commented on the potential for The Container Store’s best-in-class, solution-based offerings across the Beyond portfolio. He stated that through the licensing of the Bed Bath & Beyond brand, The Container Store will enhance their store formats and product offerings, driving improved financial performance while providing customers a more comprehensive range for their home and organizational needs. The partnership also aims to drive increased traffic for The Container Store’s core assortment and its high-margin Custom Spaces services business.
It will offer a global loyalty program, multiple payment solutions, and ancillary insurance and protection products through The Container Store’s locations and website to enhance customer experience and increase conversion of design leads. The Container Store will join Beyond’s growing data platform to enhance customer analytics, improve conversion, drive traffic, and reduce both customer acquisition and retention costs. The collaboration will also expand and renew e-commerce platforms and strategies to drive improved customer experience, traffic monetization, and profitability.
Bed Bath & Beyond isn’t the only beloved retail brand to make a comeback under another roof. WHP Global announced the return of Toys “R” Us with a flagship store at the American Dream mall in 2021 and later opened 452 Toys “R” Us shops within Macy’s stores. In 2023, WHP Global partnered with Go Retail Group to expand Toys “R” Us even further, with new stores set to open in Norridge, Illinois, and San Marcos, Texas.
