Overstock.com is set to undergo a major transformation as it plans to rebrand itself as Bed Bath & Beyond. Following the acquisition of Bed Bath & Beyond’s intellectual property assets in bankruptcy, Overstock aims to combine its own strengths with the more recognizable and stronger brand of Bed Bath & Beyond. However, it’s important to note that Overstock will not be acquiring any of Bed Bath & Beyond’s retail locations or inventory.
The decision to rebrand stems from the perception that Overstock’s current name is considered “generic” and fails to reflect the company’s primary focus on retailing home goods and furniture online. In a fortunate turn of events during Bed Bath & Beyond’s bankruptcy proceedings, an opportunity for rebranding emerged, allowing Overstock to seize the moment. The company successfully purchased the name and consumer data of Bed Bath & Beyond for a sum of $21.5 million.
One of the primary goals behind the rebranding is to entice loyal Bed Bath & Beyond customers and suppliers who may have been hesitant to partner with Overstock. Leveraging the strength of the Bed Bath & Beyond brand, Overstock aims to tap into a wider customer base and build stronger relationships with suppliers. In line with this strategy, Overstock has already launched a new Bed Bath & Beyond website in Canada and is scheduled to do the same in the United States in August.
With the transition to the new Bed Bath & Beyond branding, there may be changes in the company’s approach to pricing and coupons. The focus is expected to shift towards offering better base prices, reducing reliance on coupons, and creating a more streamlined pricing structure. This shift may lead to a different shopping experience for customers accustomed to Bed Bath & Beyond’s traditional coupon-heavy model.
The decision to acquire Bed Bath & Beyond’s intellectual property comes in the wake of the company’s struggles, including declining sales and an unsuccessful merchandising strategy. In April, Bed Bath & Beyond filed for Chapter 11 bankruptcy protection as it sought to address its financial challenges. On June 27, a U.S. bankruptcy judge authorized the sale of Bed Bath & Beyond’s intellectual property to Overstock, paving the way for this major rebranding endeavor.