With former Target executive Mark Tritton at the helm, Bed Bath & Beyond is embarking on a quest for transformation. Store closings and store remodels were just the beginning. The retailer is placing a big bet on private label brands, which Tritton's former employer has launched with great effect. Store-owned brands tend to be more profitable than national brands, with the added benefit of building customer loyalty.
Nestwell is the first of eight private label brands that Bed Bath & Beyond will debut in the next year. The line includes pillows, sheets, comforters, and towels, ranging in price from a $6 washcloth to a $260 king-size down comforter.
Given this new focus on store brands, analysts expect that Bed Bath & Beyond will see its private label brands grow from accounting for 10% of its sales to 30% in three years.
"It's the biggest change in our product assortment in a generation," Joe Hartsig, executive vice president and chief merchandising officer at Bed Bath & Beyond, said in an interview with USA TODAY about the new brands.