Starting Tuesday, Overstock.com (ticker: OSTK) will officially rebrand itself as Bed Bath & Beyond across its U.S. operations. The new online-only retailer will offer a combination of Overstock’s traditional home furnishing items and Bed Bath & Beyond’s home and kitchen repertoire.
A New Focus on Home
“Overstock has a great business model with a name that does not reflect its focus on home,” said CEO Jonathan Johnson. “Bed Bath & Beyond is a much-loved and well-known consumer brand, which had an outdated business model that needed modernizing.”
Overstock won an auction for the bankrupt retailer’s brand, intellectual property, and customer lists in June, agreeing to pay $21.5 million. Later that month, the company said it would rename itself Bed Bath & Beyond, and switched its operations in Canada to the new name.
Expanding Product Range
Since news of the acquisition went public, Overstock has added over 600,000 new products to the site, Johnson said in a call with ’s. The products hail from both new vendors, including former Bed Bath vendors, as well as vendors Overstock had worked with in the past that now want to sell additional items on the new site.
Attracting Former Bed Bath & Beyond Clients
Now that the company’s U.S. rebrand is underway, Overstock is going on a promotion blitz to reel in former Bed Bath & Beyond clients. Bed Bath had nearly 20 million active customers in its last year of operations, Johnson said. With half of those having made at least one purchase online over the past 12 months, Johnson believes there’s an opportunity to bring them back into the fold.
Overstock Revamps Bed Bath's Beloved Loyalty Program
Overstock is making a bold move by reinstating Bed Bath's beloved loyalty program. Former rewards members will be delighted to know that they will receive up to $50 in unused rewards points, exclusive coupons, and a whole year of free membership to the new paid tier of the rewards program. But that's not all - members of Club O, Overstock's old loyalty program, are in for a treat as well. Their membership will automatically transfer to the new program, and they will also receive a generous 20% off coupon.
To add to the excitement, Overstock is offering a 25% off welcome coupon exclusively for those who shop through their app. Additionally, they have plans to roll out some amazing deals on home furnishings on both the app and website following the launch.
Overstock's CEO, Jonathan Johnson, expressed his commitment to maintaining their loyal customer base while simultaneously attracting new customers. He believes that these enticing deals will do just that.
The revamp strategy implemented by Overstock has been warmly received by investors, as evidenced by the company's shares gaining over 90% this year.
Marcey Rubin Stamas, consumer and retail managing partner at DHR Global, an executive search company, sees the partnership between Overstock and Bed Bath as a "win-win" situation. While both brands are known for their commitment to providing value, Bed Bath & Beyond has historically stood out thanks to its stronger brand messaging, wider product assortment, and loyal customer base.
Despite Bed Bath & Beyond's recent struggles leading up to its bankruptcy filing, its brand reputation remains untarnished in the eyes of customers. Stamas emphasizes this distinction, stating that it's not a distressed brand, just a company that faced challenges.