Bed Bath & Beyond Revives Store Model With Kirkland Partnership

Bed Bath & Beyond brick-and-mortar stores are set to return in a new, smaller format.

The plan is part of a partnership between Beyond, which is the owner of Bed Bath & Beyond, Overstock, Zulily and other online retail brands, and Kirkland’s, which is a specialty retailer focused on home decor, the companies said in a Monday (Oct. 21) press release.

The partnership will also see Beyond invest $25 million in Kirkland’s, and the two companies collaborate on several initiatives, according to the release.

Kirkland’s will become Beyond’s exclusive operator and licensee for the new “neighborhood” Bed Bath & Beyond locations that will be up to 15,000 square feet in size and located across the country, the release said.

In addition, Kirkland’s will expand the reach of its product assortment across the expanded store network, Beyond’s websites and other marketplaces; Kirkland’s will participate in Beyond’s consumer data collective, global loyalty program, financial services and consumer protection products; and Beyond will support Kirkland’s eCommerce improvements, per the release.

“We expect the investment from Beyond will not only enhance our financial performance but also provide meaningful opportunities to introduce Kirkland’s to new customers in a cost-efficient manner while we continue to re-engage our core customer and extend our reach across multiple formats,” Kirkland’s CEO Amy Sullivan said in the release.

Smaller stores and efficiency in assortment, space management, sourcing and merchandising is “a winning recipe” in retail, Beyond Executive Chairman Marcus Lemonis said in the release.

“We view this partnership as a meaningful step forward in our long-term vision of growing through asset-light collaboration with complementary businesses while monetizing both the intellectual property of our iconic brands as well as the suite of affinity products being developed,” Lemonis said.

Bed Bath & Beyond declared bankruptcy in April 2023 after warning about its future for months and failing to secure funding that would have allowed it to stay afloat.

Its current owner, Beyond, boosted its position in the off-price market in March with its acquisition of Zulily.

“This acquisition doubles down on our belief in the off-price market and its importance to building our business, improving our margin profile and growing our customer file,” Lemonis said at the time.