Overstock.com is back from the dead
The relaunched Overstock.com sells a lot of stuff similar to its previous incarnation, including indoor and outdoor furniture, home improvement tools and jewelry, but with a bigger emphasis on closeout and liquidation deals. Its sister site will still use the Bed Bath & Beyond name and continue to operate with a refined focus on home goods and as a destination for registries for weddings and other life events.
In June 2023, Overstock.com changed its name to Bed Bath & Beyond after Overstock’s parent company bought the bankrupt retailer’s brand’s name and domain in a failed effort to benefit from its name recognition. A few months later, Overstock’s corporate name was changed to Beyond Inc.
The changes didn’t catch on with shoppers, prompting major moves within the company’s management ranks. CNBC host and Camping World CEO Marcus Lemonis was named Beyond Inc.’s executive chairman in February and said in an earnings call that getting rid of the Overstock name was a “fatal mistake.”
Beyond Inc.’s attempt at new categories, like family room furniture and large area rugs, on Bed Bath & Beyond’s website failed to appeal to shoppers, prompting management to bring back the Overstock website.
“Those results reaffirmed our conclusion during the quarter around the specific muscles that both brands can thrive separately while complementing each other,” Lemonis said in a May earnings call.
In a more blunt assessment, Overstock’s integration with the Bed Bath & Beyond brand was “badly botched,” confused customers and sank sales, according to Neil Saunders, retail analyst at GlobalData.
Bringing back Overstock creates a “more logical offer” for shoppers but will take time to resonate and reconnect with them, he said.
“A lot of work is needed to grow Overstock and put the brand back on a stable footing,” he told CNN. “Before the merger, the brand suffered from poor awareness and declining relevancy, and these problems have not yet been fixed. In essence the brand is weak and has lost share to value-focused retailers like HomeGoods. ”
Despite the name change and the integration with Bed Bath & Beyond, the changes didn't significantly improve Overstock's sales performance in new categories, leading to the decision to bring back the original Overstock website. Running Overstock as a separate entity from Bed Bath & Beyond could potentially help it regain its lost market share and strengthen its brand presence in the business of home goods and furniture.
