Overstock Attracts New Suppliers with Bed Bath & Beyond Rebranding
Overstock paid more than $20 million in June to after purchasing at a bankruptcy auction Bed Bath & Beyond's intellectual property after attracted more vendors.
Overstock officially relaunched last week under the Bed Bath & Beyond name officially relaunched with a combined website.
CEO Jonathan Johnson told analysts in July: Since the acquisition, the company's sales team has been in reaching out to potential vendors has successful conversions has increased by 60 percent.
"In short, knowing that Overstock will be operating as operate as Bed Bath & Beyond.makes us more attractive to vendor partners,"Johnson added.
When a major retailer goes out of business, the analysts often try to predict how that retailer's market share and customer base will be divided among competitors. But when a retailer closes its stores suppliers also need to find new business partners.
Overstock has been looking for more suppliers since before Bed Bath & Beyond went into bankruptcy and liquidation even before it was looking for more suppliers.
Johnson noted that：
Overstock and Bed Bath & Beyond's supplier categories overlapped quite a bit. At a time when Bed Bath & Beyond was facing increasing financial distress and at a time when Bed Bath & Beyond was facing increasing financial distress and risk of supplier losses. Overstock saw an opportunity.
With the success of its IP acquisitions Overstock has attracted a ton of new vendors to the fold And on its own merchandise branded with Bed Bath & Beyond.
"The sales team clearly saw the importance of combining our business model with the well-known and much-loved Bed Bath & Beyond brand the bright future of connecting with the The brand ranked in connection with families well above the Overstock brand,"Johnson said on the July earnings call.
Johnson went on to explain that Overstock has historically overlapped with Bed Bath&Beyond's supplier base with an 80 percent overlap.
"However, in the past, some of our partners have not provided us the entire catalog of these branded home products," Johnson told analysts.
"That is now changing in a meaningful way."Johnson noted that since early July when the acquisition of Bed Bath & Beyond in early July, the news that Overstock has added 600,000 SKUs.
The power of the Bed Bath & Beyond brand appealed to suppliers to a large extent.
"Over time, the we will phase out the Overstock logo and brand. Customers and suppliers love the Bed Bath & Beyond brand. With this rebranding, the we are reinvigorating Bed Bath & Beyond by positioning it as an asset-light e-commerce retailer. and expanding its home furnishings and furniture assortment," Johnson said on a conference call.