The retail chain grew its online sales by more than 20% year-over-year in 2016.

Bed Bath & Beyond Inc. has made it easier for online shoppers to see which products are available in its stores.

The home furnishings retail chainhas made a number of enhancements to its website recently to better meld store and web shopping, CEO Steven Temares told analysts during Bed Bath & Beyond’s earnings call for the fiscal fourth quarter of 2016, ended Feb. 25.

“Recent enhancements to our digital channels include improvements in search and navigation to enhance the relevancy of customer search results,” Temares said, according to a transcript from Seeking Alpha. “We have enhanced the functionality of an existing search feature to make it easier for customers to search the Bed Bath & Beyond and Buybuy Baby websites to determine availability of products in their local stores.”

Those changes are important because, as is the case for many retail chains, online sales growth is outpacing store sales growth. Bed Bath & Beyond, No. 67 in the Internet Retailer 2016 Top 500 Guide, reported online sales grew by more than 20% year over year on a comparable basis during both fiscal 2016 and the fourth quarter, while store sales declined by a low single-digit percentage.

Bed Bath & Beyond does not break out a dollar figure for online sales in its quarterly earnings reports. However, based on Internet Retailer web sales estimates, a growth rate of more than 20% would mean Bed Bath & Beyond generated about $761.3 million in online sales in 2016, up from an Internet Retailer-estimated $634.4 million in 2015.


Heading into fiscal 2017, the retailer said it intends to bolster its home furnishings sales efforts. Temares told analysts the retailer will pilot an online program that connects shoppers with local home-improvement professionals.

“As our assortment of home furnishings continues to grow, we remain committed to providing the services and solutions to excel in this category,” he said.

Bed Bath & Beyond last month acquired online interior design platform Decorist for an undisclosed sum.




Bed Bath & Beyond makes it easier for online shoppers to find products in-store

Interior design site Decorist is now owned by Bed Bath & Beyond.

To help shoppers style their homes, Decorist shows products, with links, from a number of retailers through its website, including Williams-Sonoma (No. 21), Target Corp. (No. 22) and Inc. (No. 29). Shoppers see the product description while still on the Decorist site and are taken to the retailer’s site when they click the buy button to complete a purchase. Decorist recently added links to Bed Bath & Beyond products, though it previously featured goods from Bed Bath & Beyond-owned Cost Plus World Market and One Kings Lane (No. 104). Bed Bath & Beyond acquired One Kings Lane for $11.8 million in June.

“We plan to add the growing home furnishing assortment from Bed Bath & Beyond and Buybuy Baby to the [Decorist] mix,” Temares said.


Decorist also serves as another vehicle to showcase our expanding footprint in the furniture and home decor category,” he said. “As the interior design arm for Bed Bath & Beyond, we plan to leverage Decorist’s online platform to initiate and/or enhance our design consultation offerings for some of our concepts.”

For the fourth quarter ended Feb. 25, Bed Bath & Beyond reported:

  • Net sales of $3.534 billion, up 3.4% from $3.418 billion in fiscal Q4 2015.
  • A year-over-year comparable sales gain, including e-commerce, of 0.4%, compared with 1.7%.
  • Net earnings of $268.7 million, down 11.5% from $303.5 million.

For fiscal 2016, Bed Bath & Beyond reported:

  • Net sales of $12.216 billion, up 0.9% from $12.104 billion in fiscal 2015.
  • A year-over-year comparable sales decline of 0.6%, compared with a 1.0% gain.
  • Net earnings of $685.1 million, down 18.6% from $841.5 million.