Struggling retailer Bed Bath & Beyond is linking up with supermarket chain Kroger to sell its home and wellness products directly to Kroger shoppers online and in select stores. In 2022, the company will launch a small-scale physical store pilot at select Kroger-owned stores.
“Kroger is a leader in fresh food and innovation,” said Rodney McMullen, Kroger’s chairman and CEO. “Every day, we look for new and differentiated ways and experiences to meet our customers’ evolving needs and elevate and celebrate the moments that matter most to our customers.
McMullen said Kroger was attracted to the deal by Bed Bath & Beyond’s “compelling portfolio of products” that will complement merchandise that Kroger already offers its customers.
“This strategic online collaboration and in-store pilot will provide Kroger shoppers easy access to essential home and baby products alongside their favorite grocery staples – continuing to fulfill our commitment of providing our customers with anything, anytime, anywhere,” he said.
Business reset
Bed Bath & Beyond has faced declining sales over the last couple of years during the COVID-19 pandemic. The company closed its stores for weeks in 2020, which was a harsh blow to its bottom line. Under CEO Mark Tritton, the company has worked to streamline operations by closing some of its unprofitable stores.
The company says its collaboration with Kroger will include a number of popular items, from bedding and storage to baby furniture and gear. It will include merchandise from Bed Bath & Beyond and buybuy Baby’s assortment, including the company’s private label Owned Brands and other national brands.
“Our collaboration with an exceptional retailer like Kroger underscores Bed Bath & Beyond’s authority in the home and baby categories,” Tritton said. “Today’s announcement is a key milestone, bringing Bed Bath & Beyond and buybuy Baby products to reach more customers than ever before. Our product assortment combined with Kroger’s customer base will present extensive opportunities for current and future customers.”
Kroger sees the deal as a way of helping its bottom line as well. Stuart Aitken, Kroger’s top marketing officer, says the deal gives the retailer a way to reach a growing number of consumers who have recently purchased their first house by offering them products that will make them feel more at home.