Back to top

Image: Bigstock

Bed Bath & Beyond (BBBY) Points Digital Edge, Partners With Roadie

Read MoreHide Full Article

Consumers’ constant shift to the digital mode of shopping has kept retailers on wheels, in terms of bucking up their omnichannel efforts. Bed Bath & Beyond Inc. (BBBY - Free Report) is one such retailer, which has been focused on transforming into a digital-first, omni-always company. The company informed that, from Jul 15, customers of Bed Bath & Beyond and buybuy BABY can pick up Buy Online Pickup Curbside orders from any store, even before the store having opened for the day.

Concurrently, the company unveiled that, courtesy of its new strategic U.S. alliance with Roadie, it has increased the number of zip codes qualifying for Same Day Delivery, by roughly double. Roadie is a crowdsourced delivery platform, with strength of more than 200,000 verified drivers across the country. This partnership will take Bed Bath & Beyond and buybuy BABY’s total number of zip codes qualifying for Same Day Delivery to approximately 16,000.

Focus on Enriching Customers’ Experience

With regard to Buy Online Pickup Curbside purchases, the company’s latest announcement fits perfectly for orders made the previous evening as they can be picked up by customers on their way to work. Customers can pick up orders curbside as early as 8 am (an hour prior to the typical working hours), thanks to this digital service. Apart from these, other Buy Online Pickup In Store and Curbside orders will be ready for pickup an hour from the order being placed compared with the earlier window of two hours.

Moving on, the collaboration with Roadie is likely to strengthen the company’s Same Day Delivery service, and enhance the experience of Bed Bath & Beyond and buybuy BABY customers. In fact, Roadie will join Bed Bath & Beyond’s other Same Day Delivery partners, including DoorDash (DASH - Free Report) and Shipt.

Zacks Investment Research
Image Source: Zacks Investment Research

Omnichannel — A Major Growth Engine

The reinvention of the abovementioned digital services underscores Bed Bath & Beyond’s efforts to help its customers get their orders faster. With things opening up and getting back to normal, the company is focused on coming up with innovative ways to keep pace with the evolving requirements of digital customers by solidifying Same Day Delivery or helping customers pick up their online orders on their commute to work.

In the recently reported first-quarter fiscal 2021 results, the company’s digital sales soared 84% from first-quarter fiscal 2019. The metric also accounted for 38% of total sales in the first quarter of fiscal 2021, as customers continued to opt for its buy online and pick up in store service. Stores fulfilled nearly 31% of digital sales, powered by Same Day Delivery, orders shipped from stores or Buy Online Pickup In Store or Curbside. As a matter of fact, more than half of the company’s customers buy both online as well as in-stores.

That said, the latest announcements are likely to mark another step for Bed Bath & Beyond on its omni-always and digital-first path. Shares of this Zacks Rank #3 (Hold) company have surged as much as 57% so far this year against the industry’s decline of 8.5%.

2 Retail Stocks You Can’t Miss

Ulta Beauty (ULTA - Free Report) , which currently carries a Zacks Rank #1 (Strong Buy), has a long-term earnings growth rate of 16.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.

DICK'S Sporting Goods (DKS - Free Report) has a Zacks Rank #1 and a long-term earnings growth of 7.1%.