Bed Bath & Beyond Launches Home Stores, Acquires Kirkland's for Expansion
Bed Bath & Beyond Inc. has initiated a significant transformation, opening its first Home Depot store in August and acquiring Kirkland's Home brand. The company's multi-brand operator, The Brand House Collective, is driving these changes while also planning for the future of its BuyBuy Baby division.
The acquisition of Kirkland's Home brand assets and trade name for $10 million has paved the way for a store conversion. Around 250 to 275 former Kirkland's locations will continue operating as Bed Bath & Beyond stores. However, this transition will not be seamless; approximately 25 Kirkland's locations are slated to close by January.
The Brand House Collective, responsible for managing Bed Bath & Beyond's portfolio of brands, has big plans. It aims to open five more Bed Bath & Beyond Home stores in the greater Nashville market this fiscal year. Additionally, it is hiring a chief merchant for BuyBuy Baby and has set a goal to open the first new BuyBuy Baby store in fiscal 2026.
Kirkland's, on the other hand, is exploring new revenue streams. It will expand into the wholesale market for the first time, marking a significant shift in its business strategy. This expansion is expected to help Kirkland's grow its revenue, despite the store closures and brand transition.
Bed Bath & Beyond Inc.'s strategic moves, including the acquisition of Kirkland's Home and the expansion of its Home Depot and BuyBuy Baby stores, signal a proactive approach to retail evolution. While the transition will result in some store closures, the company's focus on growth and diversification through new brands and markets is clear. The Brand House Collective's net sales drop in Q2, however, indicates that the road to recovery may not be smooth.
