![]() ![]() ![]() How many times do you feel the need to spruce up your bathroom on a whim? These are embedded weaknesses of the concept that became far more important in a highly competitive environment. But it sounds like that’s a more appealing strategy when you’re talking about apparel and accessories versus things you need for your home. Maxx and stores like it also rely on creating a “treasure hunt” atmosphere that encourages customers to shop there more often. But how many times have you looked for a brand-name pillow or sheet? You’re probably looking for a specific thread count. Maxx, there are big-box stores filled with brands that you, the consumer, knows and that are meaningful to you, and they are sold inexpensively there. For example, at category killers like T.J. But that wasn’t a problem, because the 20% off coupon was and became a famous way of promoting the retailer.Īnother weakness from the get-go, but one that was never very visible, is that at BB&B, you weren’t dealing with a truly branded environment. Its executives never felt that the brand needed it, and they didn’t feel comfortable spending the money for it. Verdi: In its early days, advertising was anathema to BB&B. RTP: What were, or became, the retailer’s weak points? It’s a gift because they’re immediately excited about the value being offered. ![]() They promoted value on home goods, and consumers also thought “They probably have the stuff I want.” If consumers have a perception of value, and then you offer them a 20% off coupon on top of that, that’s home-run material. BB&B captured share because it was a unique proposition in those days. When that happens, a retailer becomes the consumer’s choice, or at least one of the top choices. ![]() Those were the days when “stack ‘em high, watch ‘em fly” was a retailing mantra, and offered clarity as to what they had stacked up. Retail TouchPoints (RTP): Before we talk about BB&B’s eventual failure, what made the retailer a success in the first place?Įllis Verdi: Bed Bath & Beyond was a category killer, and the benefits of being a category killer is that it became the first place to think about for home products. He identified some of the wrong turns taken by BB&B over the years that eventually led the company to a dead end (although reportedly some buyers are interested in the retailer’s BuyBuy Baby division). Verdi brings a perspective shaped by his experiences creating witty campaigns for off-price retailers such as Daffy’s and Stein Mart. That’s the observation of Ellis Verdi, Founder and President of advertising agency DeVito/Verdi. In the case of Bed Bath & Beyond (BB&B), what had been positive points of differentiation in the retailer’s heyday became progressively less unique - and some even turned into negatives. Blockbuster Video was a retailing juggernaut until the media landscape expanded and splintered: Netflix began sending DVDs by mail, must-see fare on premium cable channels became more common, and eventually the whole streaming lollapalooza took away its raison d’etre. For example, malls were the hottest thing in retail for decades - until ecommerce behemoths like Amazon began eroding malls’ implicit promise of being the everything store (or stores). In many instances, declines occur because consumer shopping patterns shift over time. Of course, it’s never quite as simple as identifying some short-sighted decisions made when the Titanic had already hit the iceberg. What went wrong? Why couldn’t they fix it? When a retailer fails, it’s often tempting to blame the most recent set of executives and the actions they took, or didn’t take, that hastened the company’s demise. ![]()
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