After outlining a plan to roll out eight private labels this year, Bed Bath & Beyond on Monday launched the first of the group, Nestwell, in stores and online.
The brand focuses on bedding and bath essentials, ranging from sheets, pillows and duvets, to bath towels and accessories.
"We spent a lot of time over the last year really pulling this together — this brand and product attributes — and really trying to make it so that it's affordable. It targets the good and better price points," Chief Merchandising Officer Joe Hartsig told Retail Dive. "It was really done with a lot of research behind this to make sure that we're hitting the market, making it easier for our customers to shop, and making it easier and better for our customers to sleep."
To coincide with the launch, Bed Bath & Beyond also introduced the "Nestwell to Rest Well" guide, which includes an online quiz for consumers to take to help match them with products best suited for their sleep and style needs. The guide also includes design tips from the company's online interior design service, Decorist, as well as advice from Dr. Shelby Harris, whose expertise is in sleep wellness
The company outlined four customer archetypes it plans to cater to with this line: The Coziest, who finds layers of blankets and pillows appealing; The Naturalist, who may favor natural or organic products; The Trendsetter, who might cycle through products from season to season; and The Functionalist, who prefers simple layers.
"Depending on this short and easy quiz that you can take, it will lead you to product recommendations so that you can pick the type of product that's right for you," Hartsig added.
Hartsig touted the brand's "approachable price points," with products ranging from $6 for washcloths to between $30 and $120 for sheets. Nestwell is primarily targeted toward Bed Bath & Beyond's core customer segments: "The Nester," who Hartsig describes as someone who is older and female, and "The Juggler," who he said might be "a mid-aged mother, juggling perhaps a job and two or three children at home." But the brand has a broad range of product types to appeal to other demographics, he added.
To that end, the retailer said some of the products included in the line feature organic and responsibly-sourced materials, like organic cotton percale and hemp, which may appeal to a younger set of consumers.
While Nestwell marks the first private label Bed Bath & Beyond has officially launched this year, the retailer is readying the rollout of seven others in the coming months. But along with the announcement of the new brands, the retailer also said it will cut thousands of underperforming brands, labels and products from its assortment.
"Owned brands have been a massive opportunity for us. And to quantify that, they've been about 10% of our sales in the past. And so our mission, our plan — as we communicated at our investor day — is to take that to 30% and maybe beyond over the next three years," Hartsig said, adding that "for us, it's the biggest change in our product assortment in a generation."
The dive into owned brands is part of Bed Bath & Beyond's broader three-year transformation plan, which also includes resetting its merchandise assortment, remodeling around 450 stores and improving its digital experience.
"It's a huge market. It's a $180 billion home market," Hartsig said. "I think we have a right to punch hard above our belts, so we're working hard to make sure we stand tall with this new brand."