Orders from new customers drive Bed Bath & Beyond growth in U.S.
Bed Bath & Beyond, operated by Overstock.com Inc., reached 4.8 million active customers as of September 4, which marks mid single-digit percent net increase in shoppers since its U.S. launch. The online retailer shared orders grew in the mid-single-digit year-over-year in its current third quarter beginning July 1 through September 4. Bed Bath & Beyond has experienced high-teens percent growth year-over-year since its U.S. launch.
“Our U.S. business launched successfully on August 1,” said Jonathan Johnson, CEO of the new Bed Bath & Beyond, in a press release. “Consumers are showing that they love 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.
“Over the Labor Day weekend, the first major holiday event under our new brand, we were successful in attracting customers to the bedding, bath and kitchen categories, which recorded strong growth year-over-year in aggregate, for the comparable period. I thank the entire team for its dedication and focus over the last few months as we prepared to revive an iconic consumer brand in the U.S. and Canada. I remain optimistic about our future and the opportunity to gain market share under the Bed Bath & Beyond brand.”
The company completed the acquisition of the Bed Bath & Beyond brand and other intellectual property on June 28. The company launched as bedbathandbeyond.ca in Canada on June 29, and as bedbathandbeyond.com in the U.S. on August 1. Results prior to these launch dates reflect the performance of its prior overstock.ca and overstock.com websites.
In revenue, Bed Bath & Beyond recorded mid-teens percent decline year-over-year, which includes low-double-digit percent decline year-over-year since the U.S. launch. In regard to average order value, the retailer reported high-teens percent decline year-over-year along with low-20s percent decline year-over-year since the U.S. launch.
“Visits to our website have increased and conversion has improved,” Johnson said. “Our promotional offers and expanded product assortment are resonating with customers, and they love the refreshed mobile app. Since the U.S. launch, sales from the mobile app have outpaced other platforms. 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. Partner suppliers continue to add new assortment. We have added nearly 1.3 million new SKUs since early-June. The bedding, bath and kitchen categories are leading the improvement in our topline performance in the U.S. We plan to share additional details related to our third quarter 2023 performance on our next earnings call.”