Overstock.com is changing its name. It’s one you may recognize
Jun 29, 2023, 4:40 PM
FILE: A Bed Bath & Beyond store exterior is shown in the neighborhood of Chelsea, New York, on April 26. (Tal Yellin/CNN)
(Tal Yellin/CNN)
New York (CNN) — Overstock.com, one of the biggest names in e-commerce, is ditching its name for something just as recognizable: Bed Bath & Beyond.
The change comes following a judge’s approval of Overstock’s purchase of the bankrupt brand’s name, domain and loyalty program assets earlier this week for more than $21 million. However, the acquisition doesn’t include the Bed Bath & Beyond brick-and-mortar stores, which are closing.
Calling the acquisition a “significant and transformative step,” Overstock CEO Jonathan Johnson said in a press release that “combining the strengths of the Overstock operational model and the Bed Bath & Beyond brand will create a powerful synergy.”
Shares of Overstock (OSTBP) jumped more than 15% in Thursday trading following the news.
Shoppers in Canada will see the changes first. Overstock plans to relaunch that country’s website with a new look, then follow weeks later with a new shopping experience using the Bed Bath & Beyond branding for the United States. Overstock’s loyalty program, Club O, is also being changed to Welcome Rewards, the name of Bed Bath & Beyond’s program.
Perhaps using the recognizable name could give Overstock sales a lift, which have sagged in recent quarters mirroring its rivals’ pains, including Wayfair. Both have experienced a slowdown in furniture and the home goods sales after a pandemic-induced boom in 2020 and 2021 when many customers, unable to travel or go to the office, spent money redecorating their homes.
The name change “makes sense” in the eyes of Neil Saunders, retail analyst and managing director at GlobalData Retail, who told CNN the “change is one that should not be too confusing to consumers.”
“If handled carefully and with good communication, the rebrand should not alienate existing Overstock customers,” he said. “It will also ensure that Overstock gains the custom of Bed Bath & Beyond customers and loyalists, which, despite the company’s problems over the past few years, remain extensive.”
Meanwhile, the buybuyBaby chain, a former sister retailer of Bed Bath & Beyond, is being sold off in a separate sales process and is considered the most attractive part of the retailer’s assets. It remains unclear who is buying that portion of the business.
The-CNN-Wire
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