Bed Bath & Beyond disappoints on earnings — and weddings — but banks on routine
Sold out: Rachel Ray cooking set… Bed Bath & Beyond was a draw during the holidays as shoppers wrapped up Ring doorbells and weighted blankets. Despite that, BBB’s sales fell 28% last quarter, and its loss quadrupled to $280M as it tackled supply and labor bottlenecks. BBB closed 170 stores, and even temporarily axed its iconic discount catalog (tragic).
Chateau wedding < Maldives honeymoon…BBB is famous for fitted dorm sheets, but it’s also a wedding-gift destination. For years BBB dominated the registry biz, as guests splurged on crystal wine glasses and Dysons. To make up for Covid postponements, a record 2M+ couples plan to get married in the US this year. But the timing couldn’t be worse for BBB:
- 30%: The share of gifts registered to BBB — the lowest in six years. In 2017 it was #1 with 44% of US listings.
- New #1: Amazon is now the go-to for wedding registries, accounting for nearly half. Target also entered the top three as couples opt for cheaper, broader retailers.
- BTW: A quarter of millennials expect to never tie the knot, while others are choosing smaller (or no) wedding venues to fund lavish honeymoons.
Life milestones create sales momentum… but so do routines. BBB is no longer #1 for your big day, but it’s making strides in other areas of your life. Its BuyBuyBaby franchise saw double-digit growth last quarter as parents stocked on onesies and strollers. Meanwhile, the $29/year Beyond+ loyalty program added nearly 500K members, suggesting shoppers are turning to BBB for more routine purchases — from shampoo to face towels. Beyond’s partnership with grocery chain Kroger also suggests it’s trying to cash in on routines.