Bed Bath & Beyond is expanding its same-day delivery service, which will reduce shipping costs and increase the number of orders fulfilled from stores.

Bed Bath & Beyond Inc.’s acquisition of One Kings Lane and PersonalizationMall.com last year helped salvage what could otherwise have been a disappointing start to fiscal 2017.

Chief financial officer Susan Lattman told analysts last week on the retailer’s Q1 2017 earnings call that a 2.1% sales gain posted by customized gifts retailer PersonalizationMall.com and home furnishings and decor retailer One Kings Lane, in addition to opening new stores helped offset a 2% year-over-year comparable sales decline. Bed Bath & Beyond, No. 68 in the Internet Retailer 2017 Top 500, acquired One Kings Lane for $11.8 million in June 2016 and PersonalizationMall.com for $190 million in cash in November.

CEO Steven Temares expects PersonalizationMall.com in particular to have a significant impact on Bed Bath & Beyond’s overall business.

“We continue to increase our online offering on the Bed Bath & Beyond website and specifically increased our offering of personalized product by leveraging our recently acquired capabilities from PMall,” he said, according to a transcript from Seeking Alpha. “These newer items are resonating well with our customers and we will continue to add to the mix of product we offer.”

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The retailer does not break out a dollar figure for online sales in its quarterly earnings reports, but it did say that e-commerce sales grew more than 20% year over year during the quarter.

Bed Bath & Beyond is expanding its same-day delivery service, which will reduce shipping costs and increase the number of orders fulfilled from stores, Temares said. Currently, the retailer offers the service in a select number of markets and is piloting it others. Orders must be placed by 1 p.m. to be delivered to a shopper the same day. Bed Bath & Beyond

“We are making investments to evolve and improve [our] existing store format, enhance omnichannel services, integrate technology tools and create a more experiential shopping environment in our stores,” Temares said. Growth in same-day delivery “probably will be driving more of the fulfillment from local stores because of the cost savings.”

Bed Bath & Beyond did not say where it is testing same-day delivery or whether delivery is handled in-house or by shipping carrier. A spokeswoman did not immediately return a request for comment. At bedbathandbeyond.com, shoppers enter their ZIP code to see if the option is available in their location.

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For the fiscal first quarter ended May 27, Bed Bath & Beyond reported:

  • Net sales of $2.742 billion, up 0.2% from $2.738 billion last year.
  • A year-over-year comparable sales decline including e-commerce of 2.0%, compared to a 0.5% decline.
  • Net earnings of $75.3 million, down 38.6% from $122.6 million.
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