Bed Bath & Beyond’s Latest Acquisition: Is Personalization the Next Big Thing in Home Décor?
Bed Bath & Beyond doesn’t necessarily have the unique flair of, say, an antique shop or small boutique furniture store, but it’s garnered much success as a go-to for most shoppers looking for home goods. That might be about to change, as the retailer recently acquired PersonalizationMall.com for $190 million in an effort to further develop and grow its product personalization category. PersonalizationMall.com sells customized gifts such as personalized mugs, t-shirts, blankets, and even Christmas ornaments and stockings. Seeing a missed opportunity when it came to providing personalized products for milestone events like weddings, baby showers, birthdays and holidays, Bed Bath & Beyond moved to add that channel to their business.
An e-commerce upswing
This acquisition not only adds personalization to Bed Bath & Beyond’s portfolio, it also brings a large new audience with it. PersonalizationMall.com reported an impressive $160 million in online sales in 2015, up 18 percent from $136 million the previous year. Expanding online through this acquisition creates a way for Bed Bath & Beyond to grow their omnichannel offerings with a whole new set of shoppers. Bed Bath & Beyond recently saw a drop in their online sales prior to this acquisition and have reacted by taking steps to fix the fall. Besides the acquisition of an online-only company with impressive revenue, they’ve also introduced an online loyalty program that is invitation-only and offers a 20 percent discount on all purchases as well as free shipping. Customers don’t want to feel anonymous – facilitating this connection with customers is crucial for bigger retailers. Taking steps to connect with customers creates a more personal and memorable experience. This also translates into their shopping choices – a home couldn’t be more personal to a person. Offering products that are unique and one-of-kind is a great way to forge a loyal relationship., and keep them coming back for more.
It’s all about the customer
As Bed Bath & Beyond’s CEO Steven Temares states, “We view personalization as a significant opportunity for us to create additional differentiation, and enable us to do more for and with our customer.” Maintaining and growing their reputation as a destination for home goods shoppers in all stages of their life is the ultimate goal. By expanding and differentiating their products and services through this acquisition, Bed Bath & Beyond hopes to fulfill this mission.
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