After debuting several lines of exclusive brands just one year ago, Bed Bath and Beyond is reversing course when it comes to at least one of the lines it will carry, as the retailer continues to see a slump in sales.
According to CNBC, the store’s private label Wild Sage, which the company describes as a “stylish, eclectic, free-spirited bedding, décor, furniture, bath products and table linens created for young adults (and the young at heart),” is being discontinued. It was one of nine labels launched beginning in Spring 2021. Overall, the company boasts 12 owned brands, including Bee & Willow Home, Everhome, Haven, H for Happy, Marmalade, Nestwell, Our Table, Simply essential, Squared Away, Studio 3b, Wamsutta and Wild Sage.
However, the move to unveil new exclusive brands—and do away with other well-known national brands in a quick turn—actually backfired, as it seemed to be too quick of a change, which alienated customers and caused a massive slump in sales.
“If they rolled out those brands at a more measured pace and layered them in [with national brands] and the customer got a little more familiar with seeing them on the shelf, it would have been more successful,” Jason Haas, a retail analyst at Bank of America Securities, told CNBC.
Sales have continued to slump for the retailer since, with same-store sales plummeting 27% in the most recent quarter.
While it is unclear if the company is now considering doing away with more of the owned brands or discontinuing them entirely, such a move may also be too drastic, as the company was also hurt in the same way as competitors, with inventory and supply chain problems from the COVID-19 pandemic also hurting sales with certain items perpetually out of stock, with unwanted merchandise clogging up warehouses and store shelves.
In addition, they could run into issues as they try to pivot back to more national brands, as vendors could be reluctant to work with them again or request advance payments.