Overstock.com (NASDAQ:OSTK) shares jumped as much as 9.6% in premarket trading after the online household products retailer unveiled plans to relaunch Bed Bath & Beyond (OTC:BBBYQ) online in the U.S. and Canada.
The company said it plans to relaunch the Bed Bath & Beyond domain in Canada, followed weeks later by the re-launch of a refreshed website, mobile app, and loyalty program in the United States.
“This acquisition is a significant and transformative step for us,” said Overstock CEO, Jonathan Johnson. “Bed Bath & Beyond is an iconic consumer brand, well-known in the home retail marketplace. The combination of our winning asset-light business model and the high awareness and loyalty of the Bed Bath & Beyond brand will improve the customer experience and position the Company for accelerated market share growth.”
Barclays analysts agree with Johnson’s comments.
“We like the idea of this deal as a way to reinvent OSTK, which has struggled with branding as its offering evolved over time (away from close-outs),” they wrote in the note.