After acquiring the brand assets of 3B giants, Overstock added 600,000 SKUs

It is learned that according to foreign media reports, after Overstock acquired the brand intellectual property of BedBath&Beyond for US$20 million in June, it not only gained an increase in customer engagement, but also attracted a large number of suppliers that originally belonged to BedBath&Beyond.

Overstock has reportedly added 600,000 SKUs since the acquisition. This week, Overstock officially launched its combined website with BedBath&Beyond in the United States, and the website name has also been changed to BedBath&Beyond.

Overstock CEO Jonathan Johnson revealed that the company’s funnel conversion rate, a metric that tracks the sales team’s successful outreach to potential suppliers, has increased by more than 60% since the acquisition.

When a retailer declares bankruptcy, not only will the vacated market share and customer base be widely watched, but the suppliers behind it will also look for new positions. At present, after Bed Bath & Beyond went bankrupt, most of its suppliers have flocked to Overstock, which acquired its brand assets.

In fact, Overstock had been wooing BedBath & Beyond's suppliers before BedBath & Beyond filed for bankruptcy protection and liquidated its stores.

Johnson revealed earlier this year that as BedBath & Beyond's financial situation became increasingly worrying, the suppliers behind it also faced the risk of losses, so Overstock quietly introduced BedBath & Beyond suppliers in new categories including small appliances.

According to Johnson, before BedBath & Beyond went bankrupt, its supplier base overlapped 80% with Overstock. With Overstock's acquisition of BedBath & Beyond's intellectual property, the original suppliers also joined Overstock.

Therefore, Overstock not only continues the brand identity of BedBath&Beyond, but also takes over the suppliers behind it. In a way, BedBath&Beyond survives in the market through Overstock.

Overstock's advantage lies in its business model, while BedBath&Beyond's advantage lies in its brand influence. The combination of the two has attracted more suppliers to join. As a result, after Overstock acquired BedBath&Beyond in July, its SKUs surged by 600,000.

Overstock's sales have been declining in recent quarters, with revenue down 20% in the second quarter and an operating loss of $4 million. According to GlobalData's analysis, Overstock is gradually fading from consumers' horizons and its customer appeal is declining.

The acquisition of BedBath & Beyond has reversed this trend to some extent. Although BedBath & Beyond has seen a decline in business volume in recent years due to its outdated business model, it is a stronger and more well-known brand than Overstock. Thanks to BedBath & Beyond's brand influence, more customers and suppliers will join Overstock in the future.

Editor✎ Ashley/

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