Bed Bath & Beyond will sell its home and baby stuff at…Kroger
Bed Bath & Beyond also said Tuesday that it will start its own third-party marketplace online to expand its product assortment and would complete a three-year $1 billion stock buyback program two years ahead of schedule.
The company’s stock surged around 80% after the announcement.
Bed Bath & Beyond hopes its partnership with Kroger will help it reach new customers and open a new revenue opportunity for the company. Bed Bath & Beyond also said it will sell some of its own private-label brands at Kroger.
Neil Saunders, the managing director of GlobalData Retail, said in a note to clients that the partnership offers benefits for both chains.
“Kroger represents a huge channel for Bed Bath & Beyond and can bring more shoppers into contact with the brand. This alone will help the company resolve one of its key issues: remaining on the consumer radar,” he said. “Kroger itself needs to push beyond groceries and bolster its non-food business, so the partnership with Bed Bath & Beyond makes strategic sense.”