Bed Bath & Beyond’s two-fer: Price rollbacks and a non-retail acquisition
Fast Facts:
- Bed Bath & Beyond resets prices in hybrid store format with 25% reduction on thousands of products
- The Container Store x Bed Bath & Beyond merchandise assortment moving into place across the chain
- Acquires Installed Right and SFV Services in all-stock transaction
- The business generated a combined $60 million in annual revenue
MURRAY, Utah – Bed Bath & Beyond Inc. is moving to lure shoppers into its new hybrid format while also building out its home services sector with the acquisition of a project services company.
On the retail side, the company announced that it is cutting prices on thousands of products under its new format, The Container Store x Bed Bath & Beyond.
“This is not a promotion, a temporary sale, or a marketing event. It is a deliberate reset designed to better align our pricing with the value our customers deserve,” said Marcus Lemoins, the corporation’s executive chairman & CEO.
Consumers can take advantage of a signature 20% off coupon alongside the newly 25% reduced prices across the stores.
The first conversion of an existing The Container Store location to the combo format opened on May 16 in Fort Worth. The company is moving quickly to add core Bed Bath & Beyond products into all Container Store locations by mid-June.
See also: First look: Inside the new Bed Bath & Beyond/Container Store concept – UPDATED
Retailing is one pillar of the BBB Inc. plan to create an “Everything Home” business. The other involves adding services that address needs that go behind home decorating. In its latest move, the company this morning announced the acquisition of Installed Right and SFV Services. Incorporating the Detroit-based company’s installation, renovation, construction and project-execution capabilities is intended to further differentiate Bed Bath & Beyond from traditional retailers.
Installed Right and SFV Services generated roughly $60 million in combined revenues with approximately $5 million in adjusted EBITDA during the most recently completed fiscal year, according to Bed Bath & Beyond Inc.
“We found a business with a long history of performance, a reputation for consistency, and a founder-led culture that understands what it takes to operate successfully on a national scale,” said Lemonis.
See also:
- Bed Bath & Beyond boosts Q1 revenue, has more deals in the works
- Gracious Home sold to Bed Bath & Beyond Inc. as part of F9 transaction
BBB Inc. is acquiring the business in a transaction consisting entirely of Bed Bath & Beyond common stock. As part of the deal, the company will issue approximately 7.2 million shares of common stock to founder Mitch Rosen and his family.
SFV Services provides renovation, construction, demolition, facilities and project management services across residential and commercial markets. Installed Right offers professional installation for residential and commercial properies. Core offerings include closets and storage systems, flooring and carpeting, cabinetry and kitchens, lighting and fixtures, shelving systems, garage organization systems, and home improvement projects.
The new deal aligns with BBB Inc.’s recent acquisitions of Lumber Liquidators, Cabinets To Go, Elfa and Closet Works.
“The home services market remains highly fragmented, and we believe there is a significant opportunity to continue consolidating complementary businesses under the Beyond Home Services banner,” said Lemonis.
