Overstock.com CEO, Jonathan Johnson, June 29, 2023.
Scott Mullin | CNBC
shares of Excess inventory.com Shares soared nearly 20% on Thursday, a day after the e-commerce home goods retailer announced: Rename the website to Bed Bath & Beyond After buying out the intellectual property and digital assets of bankrupt retailers through bankruptcy auctions.
Shares closed above $30 a share, giving Overstock a market valuation of about $1.3 billion.
Overstock CEO Jonathan Johnson said the Overstock name reflected the company’s previous liquidation-based model and did not align with the types of products it currently sells. rice field.
“We started over 20 years ago as a liquidator, became a general retailer, and now a home furnishings and furnishings company. [were] A lot of headwinds in the name of Overstock, headwinds with customers who are confused about who we are and what we’re selling, and headwinds with suppliers who don’t necessarily want to sell if it comes with a liquidation,” Johnson said. He said on CNBC’s “The Exchange.” ”
Johnson said Bed, Bath & Beyond maintained strong brand recognition despite mismanagement and eventual bankruptcy.
Both brands already share overlapping customers, which will ease the transition, Johnson said.
“We intend to make this transition slowly as Overstock customers visit the new website and become aware of it, but so do Bed Bath & Beyond customers. will be abolished,” he added. .
Johnson said shoppers can expect Bed, Bath & Beyond’s famous coupons to live on, at least through the transition period, but in a conference call with analysts on Thursday, the company said there’s not much more to come in the long run. pointed out that it would not offer any discounts or significant discounts.
“One of the things that Bed Bath & Beyond customers will notice is that the prices without coupons are very good, and overstock and current Bed Bath & Beyond can and do offer. I think people will be very surprised by the deals that have been made,” he said.
The new Bed Bath & Beyond website will relaunch in Canada next week, followed by a US website, mobile app and loyalty program in the coming weeks.
Overstock stocks are up about 60% year-to-date.
Overstock.com’s stock price soared after it announced that it would rebrand its website to “Bed Bath & Beyond.”