Beyond and The Container Store are embarking on a new strategic partnership that will leverage the latter’s brick-and-mortar footprint with Beyond’s data platform, customer analytics, loyalty and payment programs. As part of the deal, Beyond will invest $40 million in The Container Store through a preferred equity transaction, subject to certain terms and conditions.
Additionally, Beyond will integrate The Container Store’s proprietary Custom Spaces offering, including its Elfa and Preston product lines, across its portfolio of ecommerce banners, which include Overstock, Zulily and Bed Bath & Beyond. The Container Store’s approximately 100 stores also will showcase co-branded Bed Bath & Beyond products for kitchen, bath and bedroom.
“Through the licensing of the Bed Bath & Beyond brand, The Container Store will enhance their store format and current general merchandise offering by incorporating the most popular Bed Bath & Beyond products, to drive improved financial performance while providing customers a more comprehensive product offering for their home and organizational needs,” said Marcus Lemonis, Executive Chairman of Beyond in a statement.
For its part, Beyond will offer a global loyalty program, multiple payment solutions and ancillary insurance and protection products through The Container Store’s locations and website to capitalize on the opportunity for Custom Spaces, which has been one of the few bright spots on the struggling retailer’s balance sheet. Beyond also plans to boost conversion of design leads from The Container Store to drive growth through a vertically integrated business model.
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Back to Brick-and-Mortar for (Bed Bath &) Beyond
The deal marks a return to physical retail for Beyond, following its launch of a global licensing program last month that will bring its brands to other retailers and new markets. In July 2024 Beyond had relaunched the Overstock.com site, which had briefly been bannered with the Bed Bath & Beyond brand name.
In September 2023 The Container Store expanded its assortment to include dining, entertainment, decor and textiles — categories similar to what had been carried in Bed Bath & Beyond stores. In December 2023 the retailer opened its 100th brick-and-mortar location, a small-format store (the chain’s sixth), in Princeton, N.J. However, by May 2024, The Container Store was in danger of being delisted by the New York Stock Exchange due to its stock price falling below $1 per share on average over the previous 30 trading days. (As of press time, the stock was trading at $12.55 per share.)
“We believe this partnership’s benefits will further our strategic initiatives, including deepening our relationship with customers, expanding our reach and strengthening our capabilities while accelerating our return to positive same store sales growth and profitability,” said Satish Malhotra, CEO of The Container Store in a statement. “This agreement will enable us to harness Beyond’s data platform and analytics to better identify and target customers at critical points in their purchase journeys and enhance communications with new and existing customers. It will allow us to expand our reach across our combined network and position us to leverage Beyond’s ecommerce expertise to further our own omnichannel tools and capabilities.”
Beyond Executive Chairman Marcus Lemonis had provided information on his plans for the company in May 2024, which was followed by a June 2024 restructuring of the Beyond C-suite that included Lemonis taking a more active role in managing the company.
