[Update as of 3/29/2024] Beyond, Inc. has relaunched itsOverstock.com banner with the mandate of offering “crazy good deals,” with items discounted by 30% to 70%. The retailer originally had planned to bring back the Overstock brand in September but accelerated the process after Beyond Executive Chairman Marcus Lemonis called the decision to shut down the brand a “fatal mistake.”
“Today is a pivotal day for Overstock, as we relaunch this brand by taking it back to its roots with the categories we know drive growth,” said Dave Nielsen, CEO of Overstock in a statement. “Our entire organization spent several weeks preparing to launch phase one of Overstock with an assortment that complements our Bed Bath business. Over the next several months we will be rolling out additional categories and vendors in addition to the core focus of furniture, patio, rugs and jewelry.”
Original story begins:
Beyond, Inc., owner of online retail brands Bed Bath & Beyond (BB&B) and Overstock, will bring back a standalone Overstock.com site in approximately five weeks rather than the September 2024 target date announced earlier.
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Beyond rechristened its Overstock site with the Bed Bath & Beyond name in June 2023 after it acquired the bankrupt retailer’s intellectual property. However, a new executive team wants to leverage both brands as it seeks to maximize overall sales and average order value (AOV). Beyond is working with Shopify to speed up the site’s relaunch.
During a call discussing the company’s Q4 and full-year 2023 financial results, Executive Chairman Marcus Lemonis admitted that dropping the Overstock name was a major misstep. “What we learned in this entire process, to be really candid, is that shutting Overstock down was a fatal mistake,” said Lemonis. “Because while we were able to win the buy box on selling big items with high AOVs at Bed Bath & Beyond, we had to do that by buying the business.
“Overstock.com has built a legacy on selling those types of products, and when you try to convince people that a new brand is going to do the same thing, you lose them,” Lemonis added. “Turning Overstock.com back on will not only allow Bed Bath & Beyond to expand its existing assortment and home in on its historical legacy success, but it allows Overstock to do the same.”
Revenue Falls but Active Customers Increase
Beyond had a challenging 2023, generating $1.6 billion in total net revenue, a 19% YoY decrease compared to 2022. The company’s Q4 net revenue of $384 million was 5% lower YoY compared to the same period the previous year. One bright spot during the quarter was the 9% increase in active customers, to a total of 5.6 million. The company defines active customers as those who have made at least one purchase during the prior 12-month period.
“Active customers returned to year-over-year growth for the first time in three years, with over 700,000 customers added to our customer file,” said Lemonis in a statement. “Our mandate is to grow our customer file, provide a service level that improves retention and minimizes customer returns. We believe that mandate will result in improved margins and profitability through Beyond.com and our core business.”
Lemonis added that Beyond’s goal is to achieve $2 billion of revenue in 2024 and a $3 billion revenue run rate by the end of 2025. To that end, Beyond plans a $45 million annualized expense reduction in 2024, up from a $25 million target announced in December 2023.
“We have accelerated customer acquisition during Q4, driving a vast improvement in our revenue performance,” said Dave Nielsen, CEO of Overstock in a statement. “While we spent the back half of the year launching Bed Bath & Beyond, we’ve simultaneously laid the groundwork to reignite Overstock by the end of the first quarter. We believe the combination of these two anchor brands will contribute to achieving our revenue goals.”
