Continuing the trend of expanding its e-Commerce capabilities via acquisition, Bed Bath & Beyond has purchased PersonalizationMall for approximately $190 million in cash. The 18-year-old e-Tailer specializes in customizing products, with a vertically integrated e-Commerce platform that includes an automated personalization process and rapid order fulfillment.
The PersonalizationMall purchase is Bed Bath & Beyond’s third acquisition in the past 18 months. The retailer snapped up home furnishings flash sale site One Kings Lane in June 2016 and fashion and home goods retailer Of a Kind in August 2015.
It’s likely Bed Bath & Beyond sees its biggest opportunities in the digital realm. Its Q2 2016 results showed net sales of $3 billion, a 0.2% decrease from the same period the previous year, with a comparable store sales decline of 1.2%. However, the brand’s e-Commerce sales grew approximately 20% compared to Q2 2015.
Advertisement
“We view personalization as a significant opportunity for us to create additional differentiation and enable us to do more for and with our customers,” said Steven Temares, CEO of Bed Bath & Beyond in a statement. “We look forward to supporting PersonalizationMall.com as they continue to improve the customer experience by enhancing their product mix, upgrading their e-Commerce web site and driving optimization of their marketing initiatives. We are excited by the opportunity to leverage their advanced personalization and production capabilities to create additional omnichannel offerings across all of our concepts.”
Bed Bath & Beyond, which funded the transaction with cash on hand, expects the acquisition to be slightly accretive to its net earnings per diluted share for fiscal 2016.
