Overstock’s CEO is planning to win consumers back
With the newly revived BedBathandBeyond.com, Jonathan Johnson reinstated rewards points for former loyalty customers, reissued the blue 20% off coupons synonymous with the retail brand, and increased inventory to give them an edge when the holiday season rolls around.
Despite various economic headwinds, including student loans, persistent inflation, and the highest borrowing rates in two decades, Johnson acknowledged the consumer is still struggling.
Even so, the chief executive of BedBathandBeyond.com said the company will perform better this holiday season than previous years now that it has rebranded as BedBathandBeyond.com.
Johnson said the rebranding will help Bed, Bath and Beyond push through some of those macroeconomic challenges that it wouldn’t have been able to as Overstock. “We see the fourth quarter as a more meaningful quarter for us than it has been as Overstock.”
According to Johnson, after paying bankruptcy estate fees for the brand and IP, as well as acquisition fees for the retail chain, the company spent approximately $150 million more in order to “launch the brand, reignite the customer file, and expand and create new categories while maintaining our core customers.”
As part of Overstock.com’s acquisition of the bankrupt retail chain’s intellectual property assets this summer, Johnson said the company acquired roughly 100 million customer records. They have also added two million new products since the deal was announced in June thanks to more suppliers working with them.
Even for the most popular products, Johnson said the company’s business model prevents them from running out of stock.
During every holiday season, there’s always something popular that sells out. The asset light model will stay in our stock until it just disappears. If the manufacturer still has one left, we will be able to sell it.”