Kirkland's Shares Surge 20% Amid Game-Changing Partnership with Beyond to Revive Bed Bath & Beyond
Monday, Oct 21, 2024 11:36 am ET
1min read Kirkland's, Inc. (Nasdaq: KIRK) shares surged by approximately 20% following the announcement of a strategic partnership with Beyond, Inc. (NYSE: BYON) to revitalize the iconic Bed Bath & Beyond brand. This collaboration, which involves Kirkland's becoming the exclusive brick-and-mortar operator and licensee for smaller format Bed, Bath & Beyond locations, is expected to drive sustainable profitable growth for both companies.
The partnership, valued at $25 million via a combined debt and equity transaction, will enable Kirkland's to strengthen its capital position and fuel growth initiatives. Kirkland's will become Beyond's exclusive brick-and-mortar operator and licensee for new, smaller format 'neighborhood' Bed Bath & Beyond locations nationwide. This move highlights a curated assortment of iconic legacy vendor partners while leveraging Kirkland's store operations expertise and its brick-and-mortar footprint to identify potential store conversion opportunities or new markets.
The collaboration will also capitalize on Kirkland's merchandising, product development, and sourcing teams to expand the reach of Kirkland's Home product assortment, including furniture, rugs, and textiles as well as its industry-leading core décor business, across the expanded store network, Beyond's websites, and other marketplaces. Additionally, Kirkland's will participate in Beyond's consumer data collective, global loyalty program, financial services, and consumer protection products, with the expectation to drive traffic and revenue while increasing conversion and lowering both customer acquisition and retention costs.
Amy Sullivan, CEO of Kirkland's Inc., expressed enthusiasm about the partnership: "Having known the iconic Bed Bath & Beyond brand for years, we are thrilled to partner with Marcus and the entire Beyond team to bring the brick-and-mortar strategy back to life." She further stated that the investment from Beyond will not only enhance Kirkland's financial performance but also provide meaningful opportunities to introduce Kirkland's to new customers in a cost-efficient manner while continuing to re-engage its core customer and extend its reach across multiple formats.
Marcus Lemonis, Executive Chairman of Beyond, Inc., echoed Sullivan's sentiments: "An omnichannel approach to Bed Bath & Beyond is quintessential to its success. We understand that retail is both an art and a science and have vetted the management team and infrastructure of Kirkland's Home as an ideal organization to help bring the iconic Bed Bath & Beyond brand back."
The strategic partnership is expected to drive value to both brands and all stakeholders, positioning Kirkland's for long-term success. As the collaboration unfolds, investors can anticipate enhanced financial performance and growth prospects for both Kirkland's and Beyond.
The partnership, valued at $25 million via a combined debt and equity transaction, will enable Kirkland's to strengthen its capital position and fuel growth initiatives. Kirkland's will become Beyond's exclusive brick-and-mortar operator and licensee for new, smaller format 'neighborhood' Bed Bath & Beyond locations nationwide. This move highlights a curated assortment of iconic legacy vendor partners while leveraging Kirkland's store operations expertise and its brick-and-mortar footprint to identify potential store conversion opportunities or new markets.
The collaboration will also capitalize on Kirkland's merchandising, product development, and sourcing teams to expand the reach of Kirkland's Home product assortment, including furniture, rugs, and textiles as well as its industry-leading core décor business, across the expanded store network, Beyond's websites, and other marketplaces. Additionally, Kirkland's will participate in Beyond's consumer data collective, global loyalty program, financial services, and consumer protection products, with the expectation to drive traffic and revenue while increasing conversion and lowering both customer acquisition and retention costs.
Amy Sullivan, CEO of Kirkland's Inc., expressed enthusiasm about the partnership: "Having known the iconic Bed Bath & Beyond brand for years, we are thrilled to partner with Marcus and the entire Beyond team to bring the brick-and-mortar strategy back to life." She further stated that the investment from Beyond will not only enhance Kirkland's financial performance but also provide meaningful opportunities to introduce Kirkland's to new customers in a cost-efficient manner while continuing to re-engage its core customer and extend its reach across multiple formats.
Marcus Lemonis, Executive Chairman of Beyond, Inc., echoed Sullivan's sentiments: "An omnichannel approach to Bed Bath & Beyond is quintessential to its success. We understand that retail is both an art and a science and have vetted the management team and infrastructure of Kirkland's Home as an ideal organization to help bring the iconic Bed Bath & Beyond brand back."
The strategic partnership is expected to drive value to both brands and all stakeholders, positioning Kirkland's for long-term success. As the collaboration unfolds, investors can anticipate enhanced financial performance and growth prospects for both Kirkland's and Beyond.
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