Bed Bath & Beyond's (BBBY) Wild Sage Launch to Lure Customers
Bed Bath & Beyond Inc. BBBY progresses on its transformation efforts with the roll-out of its fifth Owned Brand — Wild Sage — for this year. Wild Sage is a youthful, eclectic collection of about 600 stylish housewares for bedrooms, bathrooms, dining rooms and the living space. The company unveiled plans to launch the brand along with two other brands in early June. The other two brands, which were planned to be launched this quarter, include Our Table and Squared Away.
Wild Sage’s assortments are designed to attract young, fashionable and on-trend shoppers looking to leave a mark of themselves on any space. It is best suited for college students to design their dorm room or college apartment. It is also perfect for someone planning to move to a house or redesign their current space. Moreover, it is likely to appeal to Bed Bath & Beyond’s socially savvy Gen-Z and Millennial customers.
The launch of the Wild Sage brand just ahead of the back-to-school season is likely to prove beneficial for the company. Shares of the company rallied 2.3% after the launch of the brand.
Earlier this month, the company launched the Our Table line, which includes modern cookware, bakeware, food prep, kitchen gadgets & utensils, kitchen linens, and dining & barware products. The product line will comprise more than 1,100 products.
Moreover, the launch of Square Away is likely to be completed in the second quarter of fiscal 2021. The Squared Away brand mainly includes storage, organization and cleaning solutions for the home. It offers nearly 300 storage items for kitchen, closet, bathroom and organization throughout the home.
The aforementioned launches indicate that the company is well ahead of its target of introducing at least eight Owned Brands by the end of February 2022. Moreover, the company earlier revealed plans to launch at least 10 Owned Brands in the next two years as part of its three-year transformation strategy.
Prior to this, the company launched the Simply Essential, Haven and Nestwell Owned Brands in the first quarter of fiscal 2021. The Simply Essential assortment line has been thoughtfully designed for meeting needs across every room of a house. It is the company's first full-line assortment at opening price points. Nestwell is an assortment line, including quality bed and bath goods. The Haven is a bath brand, which offers spa-inspired organic cotton products and more.
Its transformation plan focuses on removing product redundancies, and unproductive stock keeping units, store remodels and store closures. The company expects Owned Brands to cater to consumer needs across segments such as bed, bath, kitchen and dining, storage and organization, and home decor. It remains focused on launching several private-label brands, which are likely to contribute more than 60% to its revenues.
Moreover, management expects the sales penetration of Owned Brands to grow from 10% to 30% in the first three years. Further, the company expects to boost the gross margin by managing costs and sourcing. Another major step in its comprehensive growth strategy includes plans to launch thousands of products, exclusively available only at Bed Bath & Beyond.
Bed Bath & Beyond is focused on boosting consumers’ shopping experience by offering a wide range of home-related merchandise. Its moves to expand the Owned Brands assortment are expected to create substantial opportunities for long-term growth. This along with its store-optimization efforts as well as digital and omni-channel expansion positions the company for growth in the future.
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Overall, shares of the Zacks Rank #2 (Buy) company have surged 65.1% in the year-to-date period compared with the industry’s 2.2% growth.
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