Bed Bath & Beyond, which only last month was planning to convert nearly 300 Kirkland’s stores to its BBB nameplate, appears to be backtracking. According to three suppliers who sell to the chain, less than half the total store fleet will be converted to the Bed Bath format, with some suggesting the number could be as few as 40 stores. The remainder will continue to operate under the Kirkland’s name.
According to the suppliers, who asked for anonymity to discuss the issue, only about a half dozen Kirkland’s stores have been retrofitted so far. Going forward, only the larger-size stores—approximately 10,000 square feet and above—will be considered for the conversion. Smaller locations, in the 5,000-to-8,000-square-feet range, were deemed impractical for modification given the merchandise requirements for this format. Bed Bath & Beyond did not respond to a request for comment by deadline.
The plan to convert 300 stores emerged as Bed Bath & Beyond made an investment in Brand House Collective—parent company to Kirkland’s—last year, and began what amounted to a licensing arrangement to return Bed Bath & Beyond to in-person retailing by the end of 2026. That plan went to the next level when CEO Marcus Lemonis announced that his company was buying Brand House outright, and would own the company and its stores. It was a remarkable change of heart, as previously Lemonis had asserted that under its “asset light” strategy, Bed Bath & Beyond would not actually own any stores, or the inventory and payroll requirements associated with them. This news suggests another about-face.
In discussing the conversion deal, Lemonis had indicated that some of those Kirkland’s stores would be closed rather than converted, and held out the possibility of acquiring new real estate for future Bed Bath & Beyond locations. There were also suggestions that the company could open new stores under its other brands, including BuyBuy Baby and Overstock. It’s unclear how those plans might be affected by this latest change in strategy.
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Warren Shoulberg is the former editor in chief for several leading B2B publications. He has been a guest lecturer at the Columbia University Graduate School of Business; received honors from the International Furnishings and Design Association and the Fashion Institute of Technology; and been cited by The Wall Street Journal, The New York Times, The Washington Post, CNN and other media as a leading industry expert. His Retail Watch columns offer deep industry insights on major markets and product categories.
