Retail giant, Beyond, secures BuyBuy Baby for a cool $5 million
Beyond Inc., formerly known as Overstock, has made a significant move in the retail industry by reacquiring the BuyBuy Baby brand. The acquisition, worth $5 million, marks the reuniting of the brand with its former corporate parent, Bed Bath & Beyond [1][3][4].
In July 2023, Dream on Me, a former vendor, purchased BuyBuy Baby's intellectual property and 11 store leases for a total of $16.7 million. However, Dream on Me later reopened those stores, only to close them less than a year later, shifting to a digital-only strategy for BuyBuy Baby [2].
Beyond's current strategy for BuyBuy Baby involves a capital-efficient retail expansion through a partnership with Kirkland's, now renamed The Brand House Collective. This partnership will see the conversion of multiple Kirkland's locations into smaller-format BuyBuy Baby and Bed Bath & Beyond stores of up to 15,000 square feet, combining physical locations with a strong omnichannel platform [1][3][4].
Neil Saunders, managing director of GlobalData, stated that Beyond's acquisition of BuyBuy Baby gives them access to a specialist brand in the baby space. The goal is for the BuyBuy Baby brand to thrive both online and in brick-and-mortar stores [1].
Beyond is also advancing digital initiatives. One key aspect is the tokenization of intellectual property. The company has launched digital tokens for both Overstock and BuyBuy Baby, enabling individuals to own fractional interests in these brands' IP. This is part of a broader push into blockchain asset monetization alongside traditional retail [3][4].
TZero's blockchain technology could enable BuyBuy Baby to create a digital wallet that holds both financial assets and personal records like birth certificates, medical records, and life milestones. This digital wallet could provide a revenue share on the brand's omnichannel revenue, along with loyalty benefits across Beyond's platform [3][4].
This is the second time in less than two years that a new owner has adopted the BuyBuy Baby brand. The brand's recent change of hands began in April 2023, with the closure of about 120 stores under Bed Bath & Beyond's Chapter 11 filing. Beyond, alongside Kirkland's, collectively believes in the strong future of the BuyBuy Baby brand [1].
Beyond Inc., rebranding soon as Bed Bath & Beyond Inc. and reclaiming the BBBY ticker symbol, is set to grow the baby apparel and accessories brand with a three-part strategy. The first prong of this strategy relies on Beyond's October partnership with Kirkland's [1].
References:
[1] Yahoo Finance. (2023). Beyond Inc. to Acquire BuyBuy Baby from Dream on Me. [online] Available at: https://finance.yahoo.com/news/beyond-inc-acquire-buybuy-baby-dream-161200249.html
[2] CNBC. (2023). Dream on Me to Buy Buy Baby's Intellectual Property, 11 Store Leases for $16.7 Million. [online] Available at: https://www.cnbc.com/2023/07/12/dream-on-me-to-buy-buy-baby-intellectual-property-store-leases-for-167-million.html
[3] Forbes. (2023). Beyond Inc. Rebrands as Bed Bath & Beyond Inc., Announces BuyBuy Baby Acquisition and Digital Token Plans. [online] Available at: https://www.forbes.com/sites/johnkoetsier/2023/10/01/beyond-inc-rebrands-as-bed-bath--beyond-inc-announces-buybuy-baby-acquisition-and-digital-token-plans/?sh=74764a326d2f
[4] TechCrunch. (2023). Beyond Inc.'s New Strategy for BuyBuy Baby: Capital-Efficient Retail Expansion, Omnichannel Sales, and IP Tokenization. [online] Available at: https://techcrunch.com/2023/10/05/beyond-incs-new-strategy-for-buybuy-baby-capital-efficient-retail-expansion-omnichannel-sales-and-ip-tokenization/
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