Bed Bath & Beyond CEO Mark Tritton says shoppers are increasingly skipping national brands and looking to try private labels, which are often less expensive.
“In 2020 alone, we’ve seen a migration to private labels across the industry, not just at home,” Tritton told CNBC’s Courtney Regan on Thursday morning. “Clients are open to new brands, exploring new brands, from trusted resources and retailers with whom they have an excellent relationship … We believe that Bed Bath and Beyond is well prepared to be one of those.”
The large retailer announced Wednesday that it will launch six of its own brands in the next six months, with the goal of having those items on the shelves and on its website ahead of the busy back-to-school season and back to school. University. It is planning to launch at least 10 private labels in the next two years, while simultaneously embarking on the remodel of some 450 Bed Bath & Beyond stores.
Later this month, Bed Bath & Beyond will introduce Nestwell, which sells bed and bath supplies. This will be followed by the launch of Haven, a bathroom brand, in April.
Tritton said the company also has a private label called Simply Essential in the works, which will sell more than 1,000 household essentials at competitive prices.
As it embarks on rolling out its own brand, Bed Bath & Beyond has said it expects private label sales to grow to represent 30% of its business in three years, up from 10% today. The company said these efforts should also help boost its profitability.
“We’ve built … a game plan for our store employees to communicate our new brands, the benefits, and how they can bring real joy to our customers’ homes,” said Tritton.
Shares in Bed Bath & Beyond fell less than 1% Thursday morning. Their stock has risen more than 180% over the past year. Bed Bath & Beyond has a market capitalization of $ 3.5 billion.