Part of Bed Bath & Beyond’s biz returns as brick-and-mortar shops make a comeback
Back from beyond… Bed Bath & Beyond went under in April, but its baby-products retailer, Buybuy Baby — which had been a bright spot — is staging a comeback. BB&B sold off Buybuy Baby this summer after going bankrupt, and its future was as uncertain as a toddler’s sleep schedule. Now Buybuy Baby’s new owners have reopened 11 stores with plans for 100+ new US locations over the next three years (international expansion is also in the cards). Despite BB&B’s bankruptcy, Buybuy Baby has reason to bet on brick-and-mortar:
Take it for a stroll: Buybuy Baby’s CEO said stores let shoppers test out products like strollers and cradles while getting help from associates.
Buybuy more: He added that folks rack up bigger — and pricier — baby registries in actual stores versus online. If out of sight = out of mind, then in sight = in the cart.
Brick’s back, baby… IRL stores are making a postpandemic comeback as retailers invest in physical presences to boost sales. In the US, retailers are on pace to open 1K net new stores this year. Wild stat: American retail real-estate availability hit an 18-year low of 4.8% last quarter, even as rent prices spiked. Online-native brands like Princess Polly and Casper have been opening up physical shops as well.
Online, variety rules — IRL, specialty is key… People go to sites like Amazon and Shein for volume and variety, but a physical store that provided that same selection would be overwhelming (you’d be in a warehouse). Bed Bath & Beyond failed in part because it was trying to compete with Amazon with a slew of cheaper private-label brands. But for specialty bigger-ticket buys like strollers, mattresses, Nespresso machines, and Warby Parker prescription glasses, physical stores may have an edge.