Mark Tritton, chief executive of Bed Bath & Beyond, says buyers are increasingly skipping national brand names and trying to try private label products, which are often cheaper.
“In 2020 alone, we’ve seen a migration to own brands across the industry, not just at home,” Tritton told CNBC’s Courtney Regan on Thursday morning. “Customers are open to new brands, discovering new brands, from trusted resources and retailers with whom they have a good relationship. … We believe Bed Bath and Beyond is well placed to be one of them.”
The big box retailer announced Wednesday that it will be launching six of its own brands over the next six months to get these items on shelves and on its website before the busy school and college season. The plan is to bring at least 10 private labels to market over the next two years while rebuilding around 450 Bed Bath & Beyond stores.
Later this month, Bed Bath & Beyond will make its debut with Nestwell, which sells bed and bath products. The Haven bathing brand is launched in April.
Tritton said the company also has a private label called Simply Essential in the works, which will sell more than 1,000 essential household items at competitive prices.
Bed Bath & Beyond predicts that private label sales will account for 30% of its business within three years, up from 10% today. The company said these efforts should also help increase profitability.
“We have … created a game plan for our business partners to communicate our new brands, the benefits and the ways they can create real joy in our customers’ homes,” said Tritton.
Bed Bath & Beyond shares fell 2% Thursday morning. The stock is up more than 180% over the past year. Bed Bath & Beyond has a market cap of $ 3.44 billion.