Bed Bath & Beyond's One Kings Lane plans first brick-and-mortar store
Bed Bath & Beyond bought the e-commerce home decor and furniture retailer last year for an undisclosed amount that was likely a fraction of the flash sales site’s former valuation.
The plan may be a replacement for previous plans to showcase One Kings Lane President Debbie Propst’s New Canaan, CT home, which was decorated with expertise and products from the online retailer. Using the home as a showroom didn’t comply with town commercial zoning rules, according to local reports.
Since its acquisition by Bed Bath & Beyond last year, One King’s Lane has moved swiftly from its flash-sales model to position itself as a resource for interior decor advice as well as product sales. The acquisition of the furniture site could help protect Bed Bath & Beyond against Amazon because One King’s Lane’s younger shoppers tend to shop less at Amazon than many other shoppers, according to research last year from NPD Group’s data service Checkout Tracking, which measures consumer buying behavior.
That could be down to the nature of One Kings Lane’s inventory, which includes mostly big-ticket furniture items, compared to Amazon’s, which includes a host of smaller-bore products, according to Checkout Tracking EVP Andy Mantis. “I think that’s both right now either an opportunity or at least a ‘protect and defend’ because Amazon has been making inroads across most categories,” he told Retail Dive last year. “You don’t usually see a group buying less at Amazon. It’s a really good opportunity for them.”
But the effort will soon face increased competition from off price retail company TJX Cos., which remains one of the most stalwart players in retail. TJX is expanding its Home Goods concept with a second home decor chain and will open four of the new U.S. home stores this year, as well as 81 new HomeGoods stores nationwide. TJX earlier this year reported Q4 net sales rose 6% to $9.5 billion, while fiscal year consolidated same-store sales increased 5% — its 21st consecutive year of positive same-store sales — and the company continues to benefit from falling sales at department stores.
Considering the strengths of both One Kings Lane and Bed Bath & Beyond — and the challenges that are hitting them both hard and leaving them vulnerable to competitors — they may both be better off now that they're together.
- Wall Street Journal Online Retailer One Kings Lane to Open Physical Store in Southampton
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