Bed Bath & Beyond’s co-branded store concept with The Container Store is coming to fruition.
The home retailer announced the first location will open Saturday in Fort Worth, Texas — The Container Store’s home state. In addition to store opening giveaways and promotions, the location will accept old 20% off Bed Bath & Beyond coupons.
“This is an exciting step forward as we continue bringing our Everything Home vision to life,” Amy Sullivan, president of Bed Bath & Beyond Inc., said in a statement. “By bringing together the strengths of these two iconic brands, we’re creating a more connected shopping experience that combines inspiration, organization, solutions and value for customers across every room in the home.”
The co-branded formats combine The Container Store’s organizational products and design services with Bed Bath & Beyond’s home items, according to the announcement. The layout allows customers to shop for products by room, including kitchen, bath and bedrooms. The new store also brings back elements of Bed Bath & Beyond’s former stores, like the towel wall and bed displays.
CEO Marcus Lemonis described the locations as a cohesive shopping experience versus a shop-in-shop concept.
”Rather than thinking about walking into the store and expecting to see Bed Bath & Beyond on the left and Container Store on the right, I would rather you thought about it as general merchandise in one specific area that includes storage and organization, kitchen, bath, bedroom, a little bit of decor and other impulse items ... on one portion of the store,” he said on an earnings call last month. “The other portion of the store would be filled with custom spaces and design spaces.”
The store opening comes about a month and a half after Bed Bath & Beyond Inc. announced its intent to acquire The Container Store for about $150 million in stock and convertible notes. In addition to The Container Store, the deal also included the company’s Sweden-based Elfa and Chicago-based Closet Works businesses. The deal is expected to close in July.
But the relationship between The Container Store and Bed Bath & Beyond dates back further than that.
In late 2024, Bed Bath & Beyond moved to invest $40 million into The Container Store, a deal that was ultimately called off. By the end of that year, The Container Store landed in bankruptcy court.
Now, the two are coming together in a move that helps Bed Bath & Beyond build out its brick-and-mortar presence. The two companies plan to take a phased approach over the coming months to expand the co-branded concept to The Container Store’s 98 locations and website, according to Friday’s announcement.
Bed Bath & Beyond has been on an acquisition spree over the past year, scooping up The Brand House Collective (formerly Kirkland’s Home) earlier this year and moving to buy Cabinets To Go and Lumber Liquidators owner and operator, F9 Brands.
The company late last month reported Q1 net revenue increased about 7% year over year to $248 million, while its net loss and operating loss narrowed by about 60% and 20%, respectively. At the time, Lemonis, who officially stepped into the CEO position at the start of the year, warned that job cuts at Bed Bath & Beyond could be on the horizon as AI grows both within the company and more broadly.
