New York (CNN) — Overstock.com, one of the biggest names in e-commerce, changes its name to another equally recognizable one: Bed Bath & Beyond.
The change comes after a judge approved Overstock’s purchase of the bankrupt brand’s name, domain and loyalty program assets earlier this week for more than $21 million. However, the acquisition does not include the physical Bed Bath & Beyond stores, which are closing.
Calling the acquisition a “significant and transformational step,” Overstock CEO Jonathan Johnson said in a press release that “combining the strengths of Overstock’s operating model and the Bed Bath & Beyond brand will create powerful synergy.”
Overstock shares rose more than 15% on Thursday after the news broke.
Buyers in Canada will be the first to see the changes. Overstock plans to relaunch the US website with a new look, and weeks later it will launch a new Bed Bath & Beyond-branded shopping experience for the US. Overstock’s loyalty program, Club O, will also change to Welcome Rewards, the name of the Bed Bath & Beyond program.
Perhaps the use of the recognizable name could give a boost to Overstock’s sales, which have fallen in recent quarters, as well as those of its rivals, including Wayfair. Both have experienced a slowdown in furniture and home goods sales after a pandemic-induced boom in 2020 and 2021, when many customers, unable to travel or get to the office, spent their budgets on improvements and redecorating their homes. .
The name change “makes sense” in the eyes of Neil Saunders, a retail analyst and managing director of GlobalData Retail, who told CNN that it “shouldn’t be too confusing for consumers.”
“If handled carefully and with good communication, the rebranding should not alienate existing customers from Overstock,” he said. “It will also ensure Overstock wins over Bed Bath & Beyond’s customers and loyalists, who, despite the company’s struggles in recent years, remain many.”
Meanwhile, the buybuyBaby chain, former sister retailer of Bed Bath & Beyond, is being sold in a separate sale process and is seen as the most attractive part of the retailer’s assets. It is not yet clear who will acquire that part of the business.
