by Consumers could have access to a broader mix of home furnishings, but how the company positions this high-volume business will be a big factor in its success
NASHVILLE, Tenn. — Recent news of Bed Bath & Beyond’s planned $26.8 million purchase of The Brand House Collective begs the question about the level of competition the combined brands will bring to the retail furniture industry once the deal is complete in early 2026.
Clearly, each brand has a strong presence in indoor residential furniture on their respective websites with categories including not only living room, bedroom and dining, but also office and gaming furniture, youth furniture, entryway furniture and even bath furniture to name several.
Thus, consumers have a lot of selection on both sites, giving them a wide mix of products available through each brand. This obviously will be bolstered by the companies’ brick-and-mortar presence of more than 300 stores, although the company also has identified some 40 underperforming store locations it plans to close early next year. In addition, it has identified some $20 million in cost reductions driven by the elimination of “duplicated functions, overlapping systems, and operational inefficiencies across merchandising support, logistics, technology, and administrative structures.”
With the completion of the merger, these stores that now fall under the Kirkland’s brand ultimately will become part of the Bed Bath & Beyond Home network, again giving consumers an omnichannel shopping experience.
Given how many consumers begin their search online — as noted in our Consumer Insights Now research — the company’s digital/e-commerce presence will be instrumental moving forward.
Search tools, such as those found on the Bed Bath & Beyond site, allow them to further narrow this down by product type, style, dimensions, finish, brand and more. This online shopping functionality not only makes it easy for customers to choose what they want; they also can also order it directly on the site and have it delivered to their home.
The omnichannel presence also will allow consumers to view product online before making their purchases whether in store or online. Of course, the in-store selection will be limited by available floor space.
At this stage, The Brand House Collective is better known for furniture and home décor than Bed Bath & Beyond, thanks to its in-store presentation of items such as occasional seating, tables and benches, to name several.
Before it merged with Overstock in mid-2023, Bed Bath & Beyond was never really known for furniture. Its retail stores had a mix of cribs and youth furniture, but were mostly populated with kitchen items and housewares, along with other items for the home such as florals, wall art, home textiles and rugs, for example.
Today, its website has a greater selection of indoor and outdoor furniture in most categories, representing some of the larger-ticket items in its mix.
So with the combination of both brands, there is an opportunity to boost not only the online selection each brand has to offer, but also combine the offerings in a way that benefits consumers.
Note: Home News Now reached out to Bed Bath & Beyond, and the company has declined further comment beyond what it has said publicly up to this point.
Thus, we’re compelled to share some thoughts of our own on how the merged entity can capitalize on both indoor and outdoor furniture.
+ Make the category stand out both online and on the floor. As one of the biggest-ticket items, furniture indeed should make a statement. Not only will customers associate the stores as a resource for furniture, they will also likely spend time shopping this segment in a bigger way than before, thus boosting revenue in the category.
+ This also means creating a bigger place for the category in the company’s marketing budget both online and in print, as shoppers tend to seek out furniture during notable sales periods such as Memorial Day, Labor Day and now Black Friday. The sales obviously can extend to other periods such as Presidents Day, July Fourth and even Veterans Day, covering a wide swath of the calendar year.
+ As the company seeks to cut some $20 million in costs largely in areas of duplication, it also can gain efficiencies in its sourcing network by shifting product to existing factories or finding new sources in different countries that benefit both brands. Made in America is another area where the company can find opportunities while lowering its transportation costs. It also likely can achieve efficiencies in warehousing through shared distribution.
+ Price is important in such a competitive retail landscape. But so is value, and this is where the company can identify a good, better, best pricing structure in its product mix. Whether the product is coming from Europe, Asia or North America, education is another critical part of this equation as the company has an opportunity to tell its materials, construction and overall quality story that separates it from its competitors. In-store signage, particularly signage that communicates the lifestyle nature of its furniture segment, is another way to capture the shoppers’ attention and imagination on how furniture can make their homes even more attractive and comfortable.
+ Customer testimonials and reviews will continue to be an important way to communicate shopper perceptions to others in the market for its wide mix of products. And given the amount of money people plan to spend, it’s clear that many consumers pay attention to these reviews. For each company’s product mix, there obviously are positive and negative reviews across categories. The goal is to obtain as many five-star reviews as possible, even if it means going back after the sale to correct a problem that initially resulted in a one- or two-star review.
Of course, there are other issues at hand, including the financial stability of each brand. In its latest report for its third quarter ended Sept. 30, Bed Bath & Beyond (also the owner of Overstock and buybuy Baby) reported a net loss of $4.5 million, down substantially from $61 million a year earlier. By comparison, Brand House Collective reported a net loss of $20.2 million, up from $14.5 million the same period last year.
Stating the obvious, each brand has a lot riding on this merger, and the aforementioned cost-cutting measures will play a role in their success in improving the bottom line. We expect the high-volume furniture segment also will play a role in its success depending on the steps the company takes toward capitalizing on this part of its home product mix. We also look forward to hearing more details about how the company plans to make this happen as we’re sure their ideas are a lot better than the ones we’ve talked about here.
