Casper to open first branded shop-in-shop with Bed Bath & Beyond

Dive Brief:

Expanding its brick-and-mortar footprint further, DTC mattress brand Casper on Thursday announced a partnership with Bed Bath & Beyond to open its first branded shop-in-shop.
The mattress brand will open the store concept in Bed Bath & Beyond's new flagship store in New York City on July 22, according to a company press release.
Bed Bath & Beyond's Tribeca and Bridgewater, New Jersey, stores will also offer Casper products, and the retailer will introduce the products to additional stores in the coming months.

Dive Insight:

As the constraints of operating as a digital-only retailer become increasingly apparent, more brands are pushing into brick and mortar, and Casper has been a prime example.

Casper, like many other DTC brands, has struggled with the high marketing costs associated with customer acquisition, often coming at the expense of profitability. To help mitigate some of those costs, the mattress brand has turned to physical retail.

The brand now operates over 70 retail stores and has partnerships with companies like Nordstrom, Sam's Club, Mattress Warehouse and Target. And while the latest partnership gives the brand another physical presence in a fairly substantial way, the tie-up also bodes well for Bed Bath & Beyond.

Partnering with a popular direct-to-consumer brand can help drive a new set of customers — particularly those in younger demographics — to Bed Bath & Beyond's stores. The partnership comes as the home retailer works to turn itself around, laying out a three-year transformation plan last October.

As part of the strategy, Bed Bath & Beyond announced plans to launch 10 private labels, six of which have already launched, remodel stores, and invest in its technology and omnichannel capabilities.

To that end, the retailer said Casper's products would be available through its website and mobile app and will be available through Bed Bath & Beyond's buy online, pick up in store or home delivery services.

"We are pleased to strengthen our authority in the sleep category by forging this strategic partnership with Casper to make its exceptional and innovative suite of sleep solutions available to our customers," Joe Hartsig, Bed Bath & Beyond executive vice president and chief merchandising officer, said in a statement. "We're proud that Casper's first shop-in-shop will be inside our flagship store, and look forward to together serving New Yorkers and all omni-channel customers."