Dive Brief:
- Bed Bath & Beyond announced its intentions to “significantly expand” custom storage solution company Elfa, according to a Thursday announcement.
- The brand’s reach will be accelerated across multiple methods of distribution, including direct-to-consumer, self-serve retail and expanded channel partnerships to make products more readily available across domestic and international markets.
- Elfa will expand into other categories, including flat-packed and home storage solutions, among other new products. The brand will also continue to build on its Studio Elfa concept.
Dive Insight:
Bed Bath & Beyond is already making moves with Elfa following its announcement last week to acquire The Container Store, a transaction that includes Elfa and Closet Works.
As a result, Bed Bath & Beyond named Anders Rothstein as the global chief executive officer of Elfa International AB, where he will spearhead worldwide operations, expand distribution and drive product innovation to position Elfa as a stand-alone international brand. Rothstein has led Elfa for nearly a decade.
“We see Elfa as one of the most important growth engines to be included within our Home Services platform,” Marcus Lemonis, Executive Chairman and CEO of Bed Bath & Beyond, Inc., said in a statement. “With Anders continuing to lead the business in this expanded role, we believe we will have the opportunity to grow this brand well beyond its historical constraints and fully realize its global potential.”
Up until now, Elfa’s growth in the U.S. has been limited by a concentrated distribution model, according to Bed Bath & Beyond.
Closet Works will aid Elfa by providing design, customization and installation services, so the company can deliver more comprehensive solutions to customers. Meanwhile, The Container Store will act as a distribution channel to support Elfa’s expansion.
In the past few years, The Container Store started rolling out new Elfa products. The retailer introduced a Garage+ by Elfa system, and debuted the Decor+ by Elfa line as part of its Custom Spaces expansion.
“These transactions are not just about adding brands, they are about unlocking growth,” Lemonis said. “Elfa has all the attributes of a global platform business, and our focus will be to scale it.”
Elfa was founded in 1948 in Stockholm, Sweden.
