Bed Bath & Beyond will embark on the rollout of its expanded private label program with the debut of three new brands later in March.
Under its Owned Brands program, the home specialty retailer will launch Nestwell, Haven and Simply Essential. The trio is the first of at least eight proprietary branded home product collections expected to be launched by Bed Bath & Beyond in fiscal year 2021.
“In the next six months, we will deliver the most significant transformation of our product assortment in a generation, by providing our customers with inspirational Owned Brands across every room in their homes,” said Mark Tritton, the company’s President & CEO.
He added, “Combined with our continued investment in the key national brands consumers know and love, this will create a platform for sustainable long-term growth and true authority in the home market, while helping customers realize the potential to create a happier home in each and every room.”
The new Nestwell line will feature an assortment of bed and bath goods, while Haven will focus on a collection of organic cotton products for use in the bath. The opening pricepoint Simply Essential line will include more than 1,000 items across multiple destination categories and rooms.
Bed Bath & Beyond’s Owned Brands strategy will touch a number of segments including kitchen/dining and storage and organization. The sales penetration of Owned Brands is expected to grow from approximately 10% to approximately 30% within the first three years.
Over the next two years, the retailer expects to introduce at least 10 Owned Brands. This strategy is part of a plan that includes resetting its merchandising assortment by categories and rooms, remodeling approximately 450 stores, enhancing the digital-first, omni-always shopping experience and introducing a modern, 360-degree approach to marketing and customer engagement.
As part of the transformation program, the company is also removing thousands of under-performing labels, brands and products across core destination categories that account for the majority of Bed Bath’s assortment.
The development of Bed Bath & Beyond’s private label program under Tritton’s stewardship is of little surprise to retail industry experts. Prior to joining the retailer in 2019, Tritton during his tenure at Target is credited with turning around Target’s private label strategy. With the Minneapolis, Minn.-based retailer, he led Target’s effort to launch more than 30 proprietary brands in two-and-a-half years.