Bed Bath & Beyond will launch six private label brands across home goods through 2020, in some cases displacing branded product in a bid to increase profit and differentiate itself from competitors, CEO Steve Temares said as the company reported a 60% drop in net income on a 2.6% increase in revenue for its Q3 ended Dec. 1. Same-store sales declined 1.8%.

The private label program, which will stretch across rugs, furniture, lighting, wall décor and other products, will start in March with the Bee & Willow label. At the same, it will cut back the number of branded SKUs it carries, “taking out thousands” from stores and online “if we can’t get them to the right model for us,” Temares said.

Bed Bath & Beyond’s expansion in private label echoes similar moves by Target, Walmart and other retailers.

Bed Bath & Beyond will have closed 40 stores and opened 20 new locations by the end of its fiscal year in March, the latter largely under the buybuy Baby and Cost Plus World Market names. As of last March, there were 1,017 Bed Bath & Beyond stores, 276 Cost Plus World Market locations and 119 buybuy Baby stores.

The chain also will increase the number of “lab” stores – locations containing a deeper assortment of seasonal and “treasure hunt” product and commodity items in health, beauty and food, to 40 from 18, Temares said. Bed Bath & Beyond also will increase the number of stores featuring furniture vignettes later this year to 150 from 70.

Contacts:

Bed Bath & Beyond, Robyn D’Elia, CFO, 908-688-0888