On the heels of a $40 million deal with The Container Store, Beyond, Inc. will invest $25 million in a deal with Kirkland’s, Inc. to put Bed Bath & Beyond’s brand and products back in physical stores.

The Beyond and Kirkland’s alliance will — according to an official announcement — enable “cohesive collaboration.” The deal makes Kirkland’s “Beyond’s exclusive brick-and-mortar operator and licensee for new, smaller format (up to 15k square feet) ‘neighborhood’ Bed Bath & Beyond locations nationwide.”

Kirkland’s, Inc. is No. 568 in Digital Commerce 360’s Top 1000 Database of the largest North American online retailers. The database ranks retailers by annual web sales. Beyond, Inc., which also owns Overstock and Zulily, is No. 62. Digital Commerce 360 projects that Kirkland’s online sales will reach $120.33 million in 2024.

Kirkland’s web sales by year

Kirkland’s partnership with Bed Bath & Beyond

“Having known the iconic Bed Bath & Beyond brand for years, we are thrilled to partner with Marcus and the entire Beyond team to bring the brick-and-mortar strategy back to life”, said Amy Sullivan, the chief executive officer at Kirkland’s, referring to Marcus Lemonis, who is Beyond’s executive chairman.

Beyond’s investment will come in the form of a combined debt and equity transaction.

“Kirkland’s Home has a 58-year legacy in the home decor sector, and the core strength of our brand and this organization lies in merchandising and store operations,” Sullivan said.

Meanwhile, Lemonis said the collaboration makes sense for Bed Bath & Beyond’s comeback. Bed Bath & Beyond had over 1,000 stores at its peak but was down to several hundred before its April 2023 bankruptcy filing.

“An omnichannel approach to Bed Bath & Beyond is quintessential to its success,” said Lemonis. “We understand that retail is both an art and a science and have vetted the management team and infrastructure of Kirkland’s Home as an ideal organization to help bring the iconic Bed Bath & Beyond brand back.”

The partnership with Kirkland’s will give Beyond another physical footprint to build on its deal with The Container Store.  This “less-is-more” strategy is a change from the days when Bed Bath & Beyond was considered a category killer and big-box staple of strip malls and lifestyle centers. The chain made a name for itself with an assortment of eclectic home goods and ubiquitous coupons in cavernous stores with inventory stacked to the ceiling.

Bed Bath & Beyond’s return to stores

Overstock.com acquired Bed Bath & Beyond out of bankruptcy in 2023 for $21.5 million, ultimately changing its name as the new parent company to Beyond, Inc. The retail brand became solely digital after its stores shut down and Beyond relaunched the home furnishings seller’s website.

Now, Bed Bath & Beyond will re-enter physical retail strategically with smaller presences.

Sullivan noted when announcing Kirkland’s most recent quarterly earnings that ecommerce sales for Kirkland’s face “headwinds,” something the alliance with Beyond could help to address. Kirkland’s net sales during its most recent quarter were $86.3 million, compared to $89.5 million in the prior year quarter. Comparable sales decreased 1.7%, including a 10.6% decline in ecommerce.

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