The brands will add more than 16,000 SKUs to Overstock, as the retailer bolsters its offering by featuring The Gray Barn‘s farmhouse style, Carson Carrington Home’s mid-century designs and affordable traditional items from Laurel Creek.
“Consumers are constantly bombarded with the latest trends to follow, and we found that a majority simply want to shop the looks they like instead, regardless of whether it’s on trend,” says Kelsey Byrne, Overstock’s director of private-label brands.
Overstock developed the brands after examining which products out of Overstock’s more than 7 million SKUs consumers were browsing and buying. It then worked with many of the suppliers of those items to create private-label products.
In making a pronounced private-label push, Overstock is taking a page out of Wayfair Inc.’s playbook. Wayfair, No. 16, has made a concerted effort over the past few years to drive up sales of its more than 70 private-label brands, which offer higher margins than other items. Sales of Wayfair’s own branded goods accounted for 57% of Wayfair’s revenue last year, a dramatic increase from 6% just two years earlier, the retailer reported earlier this month when it released its first quarter earnings.
Amazon.com Inc., No. 1, last November also launched two private-label brands of furniture and home goods—Stone & Beam and Rivet. In launching the brands, the retail giant said home furnishings was one of its fastest-growing product categories.
Private-label brands are a good fit for the home goods category because consumers generally shop the category by style, rather than brand, say Eric Roth, managing director and head of the consumer retail group at Lazard Middle Market, part of investment bank and asset management company Lazard.