Key Players Profiting from Bed Bath & Beyond’s Bankruptcy
In April, retail giant Bed Bath & Beyond (BBBY) filed for bankruptcy after steady declines in sales since the pandemic. In 2Q23 alone, the former industry leader lost 3 pp of market share YoY. So, which home goods retailers stand to gain the most from BBBY’s losses?
Yearly GMV YTD: Wayfair, Overstock, Bed Bath & Beyond
United States | Online and B&M Sales | H1 2019 - 2023
Over time, BBBY shoppers have been allocating more of their wallet share to Wayfair and HomeGoods. In 2019, BBBY claimed 33% of their shoppers' wallet share. In 2023, this figure shrunk to a mere 10%. Wayfair surpassed BBBY for the largest wallet share of BBBY shoppers in 2020, and now claims 27% (more than double that of BBBY). HomeGoods has also benefited from BBBY’s downfall with its wallet share growing 6 pp over the past 5 years to 22% in 2023.
Wallet Share of Bed Bath & Beyond Shoppers
United States | Online and B&M Sales | H1 2019 - 2023
So what categories are BBBY shoppers spending on at Wayfair? Chairs & Seating is the top product category BBBY shoppers are purchasing at Wayfair, at 25% of spend in 2023. Further, BBBY shoppers who also shop at Wayfair are spending more of their money on beds, sofas, rugs, storage containers, and curtains at Wayfair than in previous years.
Category Share of Bed Bath & Beyond Shoppers at Wayfair
United States | Online and B&M Sales | H1 2019 - 2023
In June, Overstock announced its purchase of BBBY. The acquisition is projected to double Overstock's market share in the home retail space, positioning the company as a potential fierce competitor to current market leader, Wayfair. Further, Overstock holds only 4.5% wallet share of BBBY customers, suggesting a strong opportunity to reach new consumers and minimize cannibalism. Will Overstock be able to restore BBBY to its former glory?
Interested in keeping up to date on Overstock’s performance post-acquisition?
Sources: Transaction Data
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