Iconic brand to make return to brick-and-mortar-stores

An iconic brand is making a return to brick-and-mortar stores.

Beyond Inc., which owns Bed Bath & Beyond , has announced a partnership with The Container Store Group.

Under the new partnership, the Bed Bath & Beyond brand will have a space inside The Container Store locations. The spaces will have an assortment for kitchen, bath and bedroom products, which will be co-branded.

Beyond Inc. will offer a global loyalty program through The Container Store brick-and-mortar locations and website.

Beyond Inc. will also integrate The Container Store's product lines across its portfolio of e-commerce banners as well as other ventures where Bed Bath & Beyond future licensed stores exist globally.

The Container Store will join Beyond's data platform.

"This agreement will enable us to harness Beyond's data platform and analytics to better identify and target customers at critical points in their purchase journeys and enhance communications with new and existing customers. It will allow us to expand our reach across our combined network and position us to leverage Beyond's e-commerce expertise to further our own omni-channel tools and capabilities," Satish Malhotra, CEO of The Container Store, said in a news release.

Malhotra said The Container Store will share more details about the partnership on its upcoming earnings call.

"Partnerships like this further support the value of iconic brands leveraging each other's assets and core competencies while improving customer conversion and retention, enhancing margins, and optimizing marketing expenses which are the principal drivers in delivering value creation and profitable growth," Marcus Lemonis, executive chairman of Beyond Inc., said in the news release.

As part of the terms of the partnership, Beyond Inc. has agreed to invest $40 million in The Container Store.

The Container Store will issue approximately 40,000 shares of a newly created series of the company's preferred stock to Beyond for a purchase price of $40 million. Following the approval by shareholders in the fourth quarter of 2024 or the first quarter of 2025, and subject to other conditions, the preferred stock would convert to common stock at a price of $17.25 which would result in ownership of approximately 40% of The Container Store common equity by Beyond.

The Container Store sells thousands of different types of containers. The retailer has two stores in Pennsylvania in the King of Prussia in Pittsburgh areas.

Beyond Inc. owns Overstock, Bed Bath & Beyond, Baby & Beyond and Zulily. Bed Bath & Beyond filed for bankruptcy protection in April 2023. The retailer closed all of its stores. In June 2023, Overstock acquired the brand and rebranded under Bed Bath & Beyond.