Bed Bath & Beyond Inc. gave itself an early Christmas present.
The home furnishings retail chain, No. 67 in the Internet Retailer 2016 Top 500 Guide, bought customized gifts e-retailer PersonalizationMall.com (No. 189) for $190 million in cash. The deal creates a retailer that generated a combined $794.5 million in online sales last year, according to Internet Retailer estimates.
Personalization in general has been a key area of focus for Bed Bath & Beyond this year. CEO Steven Temares may have foreshadowed the PersonalizationMall.com acquisition on Bed Bath & Beyond’s fourth quarter 2015 earnings call in April when he told analysts, “We remain focused on providing a consistently better and more personalized customer experience across all of our retail channels.”
In acquiring PersonalizationMall.com, Bed Bath & Beyond gets a personalized gifts retailer that has enjoyed steady growth over the past few years, growing to an Internet Retailer-estimated $160.1 million in online sales in 2015, up 18.0% from $135.7 million the previous year.
“We look forward to supporting PersonalizationMall.com as they continue to improve the customer experience by enhancing their product mix, upgrading their e-commerce website and driving optimization of their marketing initiatives,” Temares said. “At the same time, we are excited by the opportunity to leverage their advanced personalization and production capabilities to create additional omnichannel offerings across all of our concepts.”