Campaign Imminent: Bed Bath & Beyond acquired ahead of upcoming US relaunch (Score 74)

Sales Lead: Bed Bath & Beyond (BB&B) was recently acquired by Overstock for $21.5m.

• Overstock will create a less outdated business model for BB&B.
• This deal allows Overstock to accomplish its multi-mission goal to become an exclusive online home furnishings offering.
  • It also lets Overstock separate from the stigma of its name by offering a way to rebrand without taking years or costing a ton.
  • The issues with its name created disappointment for liquidation deal shoppers, confusion for high-quality home goods shoppers, and confusion for some product suppliers.
• The deal also connects Overstock to a much larger audience.
  • BB&B's loyalty program, Welcome Rewards, ranges in the high-single million digit area, more than Overstock's entire active customer count.
  • Furthermore, BB&B's 20+ million active customer base consists of more than 4x of Overstock's.
  • If existing BB&B customers "come along," they could generate upwards of $1b in extra revenue.
• Overstock recently and successfully launched under BB&B's name in Canada and will do the same in the US in August 2023.
  • Reportedly, this US launch is the company's current top priority.
  • According to CEO Jonathan Johnson in a recent earnings call, this will involve "a larger-than-normal promotional and marketing budget for the next few quarters, as we attract and retain loyal BB&B customers."
• Upcoming work will likely focus on BB&B's newly grown mobile app, classic coupons, and enhanced loyalty offerings.
  • ​​​​​​​It will also pursue new growth opportunities such as a registry business, trade and B2B sales, and potential private-label offerings under BB&B's portfolio of brands.
• Since the company announced this acquisition, suppliers of new products have been vying for space in the new stores; so far, BB&B has added more than 100k new products to its bed and bath collection alone.
• Currently, the company primarily utilizes digital channels such as SEO and email.
• Its goal is to slowly maximize BB&B's market share growth potential in the ($400b) addressable home furniture and furnishings market.
• The company will likely:
  • ​​​​​​​Return to higher spend, especially in digital channels ahead of the Q4 relaunch
  • Shift strategy
  • Seek new agency partners
• Target demographic: 
  • ​​​​​​​Back-to-school (BTS), back-to-dorm students (primarily Gen-Z in Q3 2024)
    • ​​​​​​​BB&B missed its window to utilize this strategy this year, but since it will do so during 2024's BTS season, get in touch by the end of Q4 2023-Q1 2024 to secure ad dollars for this initiative.

Additional spending insights:

• Broadcast insights (TV ad creative spend, effectiveness, impressions, and performance)
  • YTD spend: So far this year, BB&B has spent approximately $62.3m on national TV commercials, down 27% from the approximately $85.3k spent within the same 2022 timeframe.
  • Last year: In 2022, the company spent around $427.6k on this channel, less than a quarter of when it spent around $2.2m in 2021.
  • 2023 ad programming: BB&B's 2023 commercials have targeted Gen-X watching shows such as CBS Mornings, Today With Hoda & Jenna, Rachael Ray, The Drew Barrymore Show, and KTLS 5 Morning News at 10.
• Digital and social insights (digital ad spend, effectiveness, impressions, and performance)
  • YTD spend: The retailer has allocated roughly $1.2m toward this channel YTD, a mere fraction of the roughly $17.5m allocated by this point last year.
  • YTD data: Since the beginning of 2023, BB&B has earned ~190.8m digital impressions via Facebook (65%), Instagram (26%), desktop display (7%), YouTube (1%), and mobile display (1%) ads.
  • Last year: In 2022, the company's estimated full-year spend decreased by 17% to $29.3m from that of $35.1m in 2021.
• Additional channel insights  
  • The company utilizes Google Ads along with TikTok, Facebook, Instagram, and online video (via Youtube.com, Youtube IOS, and Youtube Android) ads.

Additional agency insights:

• Opportunity: Reach out soon to see if BB&B needs any agency assistance with the relaunch.
• Current agency roster:
  • ​​​​​​​No current agency relationships yet confirmed

Insight Sources: Broadcast insights estimated by iSpot; digital spend insights estimated by Pathmatics; additional channel insights estimated by Vivvix.