Bed Bath & Beyond Is Doubling Down on Private Label
The Motley Fool | July 15, 2020
Late last year, before the coronavirus contagion became the one thing that mattered the most, struggling retailer Bed Bath & Beyond began putting some much-needed change in place. Namely, it hired former Target merchandising executive Mark Tritton as its new CEO in October, who in December sent the vast majority of his executive management team packing.
The sweeping move solidified the idea that he was going to try and recreate his success at Target, which was largely rooted in private label goods.
Private label isn't just a grocery phenomenon. E-commerce giant Amazon is in the business too, along with many other retailers. Target is waist-deep in it, largely thanks to Tritton. It now operates dozens of house brands, which, according to an estimate from e-commerce news site The Drum, now drives more than $70 billion worth of sales per year for the discount chain.
It's increasingly clear private label is going to be a key part of Bed Bath & Beyond's turnaround.