Big Lots says its decision to accept Bed Bath & Beyond coupons is drawing more 'dislocated' shoppers to the struggling discount retailer
Big Lots decided to accept Bed Bath & Beyond coupons after the latter filed for bankruptcy in April, hoping to pick up the scraps of another retailer.
Áine Cain / Business Insider
- Bed Bath & Beyond filed for bankruptcy in April after months of struggling to keep up profits.
- Big Lots is one of many retailers that have accepted Bed Bath & Beyond coupons at their stores.
- Big Lots president and CEO Bruce Thorn said the retailer is trying to pick up 'dislocated' BBBY customers.
When Bed Bath & Beyond announced it would be filing for bankruptcy in April after a months-long struggle, many other retailers swooped in to accept Bed Bath & Beyond coupons to bolster their businesses.
For Big Lots, a discount furniture and home decor retail chain that's been wrestling with its own financial problems, Bed Bath & Beyond's pain has been its gain, per Big Lots executives.
"We think there's a big opportunity for us to bring in some of the dislocated customers from the Bed Bath & Beyond bankruptcy," Bruce Thorn, Big Lots president and CEO, said during an earnings call Friday. "We've got a good store footprint overlap with their stores within 10 miles."
"Our recent campaign to honor their 20% discount was a great success in terms of attracting 90 million TV and radio impressions, and that resulted in good redemption rates that allowed us to sign up more loyalty customers from that," Thorn added. "We expect that to continue. Right now, they're in the process of liquidating their stores and their products."
He said Big Lots also plans to focus on "other companies that unfortunately have gone out of business." On Friday, it reported a net loss of $206.1 million in its fiscal first quarter and a year-over-year drop of 18.3% in net sales. The company also suspended its dividend, sending shares tumbling.
Big Lots isn't alone in trying to capitalize on the fall of Bed Bath & Beyond. The Container Store, JoAnn, and Sur La Table have also been accepting Bed Bath & Beyond coupons in hoping to attract new customers.
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