New customers driving growth at revamped Bed Bath & Beyond

Customers — new and existing ones — are checking out the Bed Bath & Beyond.

The retailer, now operated by Overstock.com, released an update on its third quarter performance in which it reported mid-single-digit percent growth in orders year-over-year, including high-teens percent growth year-over-year since the U.S. launch. (Overstock bought the intellectual property and digital assets of Bed Bath & Beyond in June. The online home furnishings retailer subsequently said it would soon start operating its website under the Bed Bath & Beyond name. The site relaunched in the U.S. August.)

In other results, the company said it experienced a mid-single-digit percent net increase in active customers since the U.S. launch.  It also reported a mid-teens percent decline year-over-year, with a low-double-digit percent decline year-over-year since the U.S. launch.

“Consumers are showing that they love the new Bed Bath & Beyond,” said Jonathan Johnson, CEO of the new Bed Bath & Beyond. “Even in a challenging macro-economic environment, we acquired new customers and re-activated past customers. Our topline performance is improving steadily. We have experienced year-over-year order growth since the U.S. launch, led by orders from new customers.”

On the product front, nearly 1.3 million new SKUs have been added to the revamped website since June. The bedding, bath, and kitchen categories are leading the improvement in the company’s topline performance in the U.S., noted Johnson. 

Johnson added that that visits to the website have increased and conversion has improved and that customers love the refreshed mobile app.  In addition, Overstock's loyalty program, Club O, was converted to Welcome Rewards, the name of Bed Bath & Beyond's loyalty program.

“Since the U.S. launch, sales from the mobile app have outpaced other platforms,” he added. “We are also seeing strong engagement within our historic customer base, and the mix of orders from Welcome Rewards members has increased 500-basis points since the U.S. launch.”

Overstock said it plan to share additional details related to the 3Q 2023 performance on its next earnings call.