Retail giant Bed Bath & Beyond Inc. (NASDAQ: BBBY) recently revealed its e-commerce venture with grocery giant The Kroger Co. (NYSE: KR). The launch follows the announcement of their collaboration in November 2021.
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Following the news, shares of Bed Bath & Beyond remained almost static and closed at $21.81 in Wednesday’s extended trading session.
The venture will be powered by Kroger’s Ship marketplace and will include several items like bedding and storage, and baby furniture and gear from both Kroger and Bed Bath & Beyond. Further, a branded shop-in-shop experience in select stores will also follow.
With an easy and convenient interface to assist customers in their shopping experience, the e-commerce venture is expected to be customer-centric at its core.
Management Commentary
The Chief Operating Officer of Bed Bath & Beyond, John Hartmann, said, “We are very pleased to expand our customer base through the extensive reach of Kroger, the largest grocer in the U.S. With our authoritative line of products for every room of the home, including our exclusive Owned Brands, and leading line of items that help welcome moms and dads to parenthood, we are excited to provide Kroger shoppers with a compelling one-stop shopping experience.”
Wall Street’s Take
Consensus among analysts is a Hold based on four Buys, 10 Holds and three Sells. Bed Bath & Beyond’s average price target of $54.13 implies downside potential of 7.8% from current levels. Shares have declined 23.5% over the past year.
Conclusion
The stock has been under pressure for quite some time. However, with this move, Bed Bath & Beyond is expected to receive the thrust that it warrants.
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