Bed Bath & Beyond (BBBY) Ups Delivery Game With DoorDash
Bed Bath & Beyond Inc. BBBY is furthering its partnership with DoorDash to provide on-demand delivery of homeware products from more than 700 Bed Bath & Beyond locations and 120 buybuy BABY stores nationwide. With the collaboration, the company becomes the first home goods and baby goods retailer to be available on the DoorDash app and the website.
Customers can purchase more than 60,000 products and items found on BedBathandbeyond.com and buybuyBABY.com from the DoorDash app and the website, and get their orders delivered within an hour. The move is also in sync with the company’s digital-first transformation plan. It is likely to leverage on DoorDash’s platform to expand the customer base.
The on-demand delivery launch will be commemorated by a special discount of 40% (up to $40) with the use of code BEDBATH for the first purchase of Bed Bath & Beyond products on DoorDash and code BABY for the first buybuy BABY purchase. The offer is valid between Sep 22 and Oct 10.
Some other companies, which have partnered with DoorDash for on-demand delivery services, are Albertsons Companies ACI, Casey's General Stores CASY and Rite Aid Corporation RAD.
Prior to this, Bed Bath & Beyond collaborated with DoorDash for same-day delivery services across the United States and Canada. Markedly, Bed Bath & Beyond remains committed to providing faster and convenient shopping options such as Buy Online Pickup in Store and Curbside, Same Day Delivery and the DoorDash marketplace.
On the store front, Bed Bath & Beyond remodeled 26 stores in the fiscal first quarter and is on track to remodel 130-150 stores in fiscal 2021. It is on track with proof-of-concept stores, which will feature destination categories, bed, bath, kitchen, and storage products.
Bed Bath & Beyond has also been progressing well with its three-year transformation plan. As part of the plan, it has been expanding its product assortment via the launch of Owned Brands, including Nestwell, Haven, Simply Essential, Wild Sage, Our Table and Squared Away. Management expects to introduce at least 10 Owned Brands in the next two years.
The new Owned Brands will cater to consumer needs across segments such as bed, bath, kitchen and dining, storage and organization as well as home decor. The products will form part of the company’s key category, which contributes more than 60% to its revenues. Sales penetration of Owned Brands is likely to grow from 10% to 30% within the first three years.
Wrapping Up
All said, we believe that partnerships to expand omnichannel facilities as well as increased product offerings and transformational plans are likely to help Bed Bath & Beyond drive growth. We note that shares of this Zacks Rank #3 (Hold) stock gained 32.1% year to date against the industry’s decline of 0.7%.
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