- Bed Bath & Beyond plans to reenter the brick-and-mortar market with smaller, 15 KSF stores as part of a partnership between its parent company, Beyond Inc., and Kirkland’s.
- Kirkland will act as the exclusive brick-and-mortar operator of Bed Bath & Beyond, Overstock, and Zulily brands.
- The chain’s big move reflects a broader trend of retailers restructuring and reemerging post-bankruptcy, a path also followed by True Value and Red Lobster.
As reported by Bisnow, less than two years after closing its last store, Bed Bath & Beyond is returning to physical retail.
Smaller Footprints, Bigger Plan
The brand, now owned by Beyond Inc. (BYON), will open five new stores in 2025. These smaller, 15 KSF “neighborhood” locations will serve as a test to gauge consumer interest in the scaled-down format.
The move is part of a partnership between Beyond Inc. and home decor retailer Kirkland’s (KIRK), which will be the exclusive operator and licensee for Beyond’s portfolio of brands, including Overstock and Zulily.
Kirkland’s is planning to pilot these smaller Bed Bath & Beyond stores, with a focus on efficient space management and a curated assortment of products. “The key to retail is efficiency in assortment, space management, sourcing, and merchandising, all while recognizing that smaller, tighter footprints with significantly lower fixed cost models is a winning recipe,” said Beyond Inc. Executive Chairman Marcus Lemonis.
Kirkland’s, which currently operates 325 stores across 35 states, will also see its own decor products integrated into Beyond’s online platforms, expanding reach and customer engagement.
Expanding Partnerships
Under this deal, Beyond Inc. will invest $25M in a debt-and-equity transaction to strengthen Kirkland’s capital position and support its growth plans. The collaboration aligns with Beyond Inc.’s strategy of asset-light expansion, leveraging partnerships to grow its brands without taking on the overhead of traditional retail models.
Beyond Inc. is also extending its reach through a partnership with The Container Store (TCS), announced last week.
This agreement will introduce Bed Bath & Beyond products into cobranded spaces within The Container Store locations across the U.S., with Beyond investing $40M as part of the deal. The partnership will also integrate The Container Store’s custom organization brands into Beyond’s e-commerce and future store formats.
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Restructuring Resilience
The revival of Bed Bath & Beyond follows a trend of companies restructuring and making a comeback post-bankruptcy. In 2023, Bed Bath & Beyond filed for bankruptcy, and its intellectual property was acquired by Overstock.com, which subsequently rebranded as Beyond.
Other retailers, like True Value Co. and Red Lobster, have similarly restructured, using strategic partnerships and new investments to revive their businesses.
Looking Ahead
If successful, the initial pilot of Bed Bath & Beyond’s smaller-format stores could lead to a broader rollout, signaling a shift in strategy for Beyond Inc. and setting a new precedent for other retail brands seeking to adapt to changing market conditions.
Kirkland’s sees the partnership as an opportunity to enhance financial performance and extend its reach to new customers through Beyond’s brand recognition.
The smaller format, neighborhood-centric approach may represent the future of retail, where efficiency, strategic partnerships, and digital integration are key to survival and growth.
