Bed Bath & Beyond is moving forward with a store remodel plan that will see the home specialty retailer invest $250 million to refresh more than 450 locations over the next three years.
During an investor conference call announcing financial results for the company’s fiscal year third quarter, John Hartmann, Bed Bath & Beyond’s chief operating officer, said the retailer has advanced from its initial test of 10 remodeled stores in Houston.
“These proof-of-concept stores highlight our destination categories such as bed, bath, kitchen and storage,” he said. “We will take our learnings from Houston and move into our first expanded wave of renovations in 2021, which includes approximately 150 stores.”
Specifics on what changes will be made to the physical appearance and overall flow of the remodeled store were not shared. Bed Bath & Beyond stores have been in need of change as the tightly packed merchandise in all departments, including kitchenware, make it difficult to view product and shop from category to category.
In addition to the progression of its store remodeling effort, Bed Bath & Beyond in March will begin rolling out a product assortment featuring proprietary brands.
Mark Tritton, the retailer’s president & CEO, said several brands will be launch in a number of key categories.
“We’re already seeing strength in growth in reinventing (categories) with own brands and also the introduction of opening price point items, which has been a missing part of our equation in terms of being truly competitive in the marketplace to build our authority,” he said.
The expansion of proprietary brands at Bed Bath & Beyond is a change in direction for a retailer that has long carried an impressive roster of national brands in the kitchenware category. Which categories are most impacted by the growth in private label products remains to be seen.