- Shares of Bed Bath & Beyond surged as much as 54% on Wednesday after the retailer announced the launch of its own private label brands.
- The retailer will soon launch three new owned brands targeting the kitchen, home, and storage space.
- As part of its turn around, Bed Bath & Beyond has launched a number of private label brands in a bid to boost both profits and sales.
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Bed Bath & Beyond spiked as much as 54% in Wednesday’s trading session following the retailer’s “ahead of schedule” launch of three new private label brands targeting the kitchen, home, and storage space.
The private label launch by the retailer is part of its continued turnaround strategy since CEO Mark Tritton took over in late 2019. The brands Our Table, Wild Sage, and Squared Away will launch in the coming weeks and round out Bed Bath & Beyond’s private label offering to six total.
The retailer said it plans to have launched a total of eight private brands by February of next year, and at least ten new brands total. The move into private label brands is following the playbook of Tritton’s former employer, Target, which has seen great success with its Threshold, Hearth & Hand, and Room Essentials brands.
Bed Bath & Beyond launched Simply Essential, Haven, and Nestwell brands last quarter, offering products in the kitchen, bathroom, and bedroom space. Bed Bath & Beyond’s three new brands will offer more than 2,000 individual products for sale.
The move is a bid to continue Tritton’s turnaround strategy of the struggling retailer, with private label brands often seen as boosting profits for retailers, as well as sales if the brands take off with consumers. The retailer expects its private label brands to triple its sales penetration to 30% from 10% over the next three years.
Bed Bath & Beyond’s surge on Wednesday could have also been supercharged by an overall frenzy in so-called “meme” stocks, with AMC Entertainment leading the charge, up more than 100% on Wednesday. Bed Bath & Beyond is a heavily shorted stock that nearly tripled amid the GameStop frenzy that occurred in late January.