Bed Bath & Beyond Will Open New Stores—Here’s What to Expect
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Attention all shoppers! Just when we thought Bed Bath & Beyond was going extinct for good, the retailer announced that a new concept is in the works. Parent company Beyond, Inc. has swooped in and negotiated a “strategic partnership” with Kirkland’s Home to “drive sustainable profitable growth” and “leverage core strengths,” according to an Oct. 21 press release. The news comes on the heels of what has been a chaotic two-year run for Bed Bath & Beyond, including bankruptcy filings, an acquisition, and some website renovations. But don’t get too excited just yet—the rollout will be micro compared to the chain’s former physical footprint.
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After forecasting “ substantial doubt ” about its future at the top of the year, Bed Bath & Beyond declared bankruptcy in April 2023. The company was unable to make any headway in paying off its crippling debt and was forced to shut its doors as a result.
From there, a bidding war ensued , with Overstock.com coming out as the winner. The online furniture marketplace acquired Bed Bath & Beyond’s intellectual property, business data , rights to mobile apps, and certain contracts for $21.5 million, reported The New York Times . (Overstock.com is owned by Kirkland’s Home.)
In Aug. 2023, Bed Bath & Beyond, under the guise of Overstock.com, unveiled a new and improved website , stocked with home furnishings, including furniture, decor, and rugs—in addition to the kitchen, bathroom, and bedding items longtime Bed Bath & Beyond customers have come to know and love.
Things have been quiet as Bed Bath & Beyond has found its bearings, but now the company is entering a new chapter with Kirkland’s.
According to the press release, the company has plans to open up “neighborhood” store locations nationwide. These will range from 7,000 to 15,000 square feet, says Retail Dive, with Kirkland’s serving as the exclusive brick-and-mortar operator and licensee of Beyond.
Customers can expect to see Kirkland’s curated assortment of home goods—including furniture, rugs, textiles, and other decor—across all physical storefronts and online. In return, Beyond will guide Kirkland’s through a digital transformation to help boost online sales.
“Having known the iconic Bed Bath & Beyond brand for years, we are thrilled to partner with Marcus and the entire Beyond team to bring the brick-and-mortar strategy back to life,” Kirkland’s CEO Amy Sullivan said in a statement. “Kirkland’s Home has a 58-year legacy in the home decor sector, and the core strength of our brand and this organization lies in merchandising and store operations.”
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As of this reporting, Beyond has not disclosed in which cities it plans to open brick-and-mortar Bed Bath & Beyond locations.
However, that’s just part of the $25 million debt and equity transaction. Of that hefty sum, a $17 million term loan credit will be allotted to Kirkland’s to pay off an existing loan with Gordon Brothers. The rest will be converted into Kirkland’s shares.
Calling retail both an art and a science, Beyond executive chairman Marcus Lemonis said Bed Bath & Beyond’s future success is dependent “on an omnichannel approach.”
“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. We are very excited to work with the Kirkland’s board and Amy, along with her entire management team, as we reinvigorate the Bed Bath & Beyond brand,” he said in a statement.
Walgreens Is Closing 1,200 Locations—And 500 Are Shuttering Next Year
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Like so many retail chains, Walgreens has struggled amid failed growth strategies, rising competition, and mass shrinking. (However, in Jan. 2023, Walgreens admitted it “cried too much” over shoplifting.) Still, company CEO Tim Wentworth revealed in a Wall Street Journal interview that Walgreens operates 8,600 stores in the U.S., 25 percent of which aren’t profitable . Looking ahead, Walgreens is setting plans into motion that will hopefully restore business and boost profit margins. “We are at a point where the current pharmacy model is not sustainable ,” Wentworth told analysts last quarter. All of this to say, your neighborhood Walgreens may be closing its doors—if it hasn’t already.
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During a fourth-quarter earnings call on Tuesday, Walgreens announced plans to close 1,200 of its locations across the U.S. In a press release , the company explained the “footprint optimization program” will unfold over the course of three years. However, approximately 500 stores will shut their lights in 2025.
“Our retail pharmacy business is central to our go-forward business strategy. However, increased regulatory and reimbursement pressures are weighing on our ability to cover the costs associated with rent, staffing, and supply needs,” a company spokesperson said in a statement to Best Life .
“It is never an easy decision to close a store. We know that our stores are important to the communities that we serve, and therefore do everything possible to improve the store performance. When closures are necessary, we will work in partnership with community stakeholders to minimize customer disruptions,” the spokesperson continued.
As for which cities and states will be impacted by the store closures, the spokesperson said specific locations and details aren’t available at this time. However, Walgreens is committed to “redeploy the majority of our team members from those stores that we close.”
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In a call with analysts, Walgreens’ global chief financial officer, Manmohan Mahajan , hinted that the company would strictly target locations with negative cash flow, as well as underperforming stores where the company owns the locations and stores whose leases are set to expire in the next few years.
“This indicates that there are another 800 stores for which we’re focused on improving their operating performance and cash flows,” Mahajan said. “However, as has always been the case, we will continuously evaluate this group and all our stores to ensure we ultimately operate with the best possible footprint.”
Walgreens reported a $3 billion net loss during the fourth quarter of fiscal 2024, per the company press release. Meanwhile, operating loss in fiscal 2024 was 104.5 percent higher than the year prior, coming in at $14.1 billion. An increase of 180.4 percent was also attributed to the company’s net loss in fiscal 2024, while adjusted net earnings were down by billions.
