Dive Brief:
- In a reversal from the company’s previous stance, The Container Store and Bed Bath & Beyond combined store formats will include 12 locations in California, according to a Thursday press release. Bed Bath & Beyond Inc.’s CEO and Executive Chairman Marcus Lemonis previously said “we will not open or operate retail stores in California” in an August press release, saying the state is overregulated and has a risky business environment.
- The move is part of a chainwide “Store Changing” sale event at The Container Store in which 98 locations will reset selling floors to integrate Bed Bath & Beyond merchandise. The Container Store will liquidate about 30% of select categories and SKUs starting tomorrow.
- The 98 identified locations will transition over the following months to The Container Store and Bed Bath & Beyond store format. Bed Bath & Beyond in April announced an agreement to acquire The Container Store for about $150 million in stock and convertible notes.
Dive Insight:
Lemonis’ previous criticism of the business environment in California included a heated exchange on X with Governor Gavin Newsom in August. The chief executive continued to critique Newsom on X earlier this month.
Bed Bath & Beyond Inc. did not immediately respond to a request for comment from Retail Dive on any update to its views of operating stores in California.
Nonetheless, The Container Store and Bed Bath & Beyond formats will include a dozen stores in the Golden State, as well as locations in 33 other states. The updated stores will combine The Container Store’s organizing solutions and in-home services with an expanded home assortment and other offerings from Bed Bath & Beyond.
For the chainwide resetting event, The Container Store will offer price reductions to customers and will open one hour early on Saturday and Sunday to provide an additional 5% discount to early-bird shoppers.
“This is a reset with purpose,” Jen Pape, senior vice president of stores at The Container Store, said in a statement. “We are actively reshaping our stores to make room for what’s next. By streamlining select categories today, we’re creating the space and flexibility needed to introduce Bed Bath & Beyond products and deliver a more complete home experience for our customers.”
Bed Bath & Beyond’s move to acquire The Container Store is intended to help the home retailer develop a broader home services ecosystem. The Container Store joins the Bed Bath & Beyond, Overstock.com, BuyBuy Baby and Kirkland’s omnichannel retail brands, while Elfa and Closet Works will focus on home services.
“This transaction will fill critical gaps in both our retail and home services strategy,” Lemonis said when the transaction was announced earlier this month. “As we build our company platform, any additional assets including talent must serve a clear purpose to our company’s long-term strategy.”
That strategy encompasses an omnichannel retail pillar, a products and services pillar and a home services pillar. About a week after The Container Store acquisition was announced, Bed Bath & Beyond Inc. said it also signed a letter of intent to acquire “the equity interests and substantially all assets” of Cabinets To Go and Lumber Liquidators owner and operator, F9 Brands Inc.
