While tariffs caused widespread panic among many different retailers across the United States, they gave the chance for one business to reinvent itself.
Bed Bath & Beyond saw the tariffs as a kind of “catalyst.” One thing was apparent when the import taxes hit: many retailers needed to change drastically to survive. Bed Bath & Beyond embraced this and flipped the threat on the horizon into an opportunity for innovation.
Bankruptcy
Bed Bath & Beyond faced bankruptcy in April 2023 due to a drastic drop in sales. The business closed over 350 stores and over 100 Buy Buy Baby locations. The business was bought for over $20 million by Overstock.com before being rebranded as Beyond Inc.
However, the franchise is steadily making a comeback due to new leadership, returning retail stores, and even tariffs.
The Domino Effect
When tariffs came with little warning, retailers scrambled to try to change around supply lines to make items affordable. But for Beyond Inc. and the Bed Bath & Beyond brand, everything had to be overhauled.
The brand cut off its dependency on foreign importers and instead looked to partners on domestic soil. This had other radical effects, such as price cuts, improved quality of products, and forcing competitors to look to similar methods.
Boosting American Jobs
By moving 22% of production much closer to home, Bed Bath and Beyond is not only helping itself but also aiding the U.S. economy. Production being inside American borders means more contracts for local employees, bolstering domestic jobs.
This move saves more than just Bed Bath & Beyond, will reignite the domestic production sector, and prove that tariffs, while forcing a change, did so in the right direction.
Consumer Choices
Tariffs ensured that many imported items from other countries were too expensive to keep on the shelf, and in response, Bed Bath & Beyond has pivoted to local production, meaning fewer generic items and more unique, locally sourced items.
This means that shoppers can look forward to better quality items and more variety when they shop, as well as knowing that many of the products they are buying are made on domestic soil.
Integrating Offline And Online Experiences
Bed Bath & Beyond invested heavily in the online retail space before it made a historic comeback into the physical retail space.
This means that the brand has integrated both into its business practice by using analytics, mobile shopping, curbside pickup, and physical locations to reach a broader market.
How The New Strategy Has Worked
Things are looking up for the Bed Bath & Beyond brand since the drastic reacquisition and moving most production into North American borders. The brand released a sales report, citing a 14% increase in sales in Q1 of 2025 even in the face of tariffs.
Inventory has reduced a substantial amount, up to $100 million when compared to five years ago. This means that there if better efficiency for Bed Bath & Beyond and higher profit margins, while getting rid of redundant items that undersold.
A Competitive Industry
The retail landscape is a fiercely competitive one, especially the home goods sector. Bed Bath & Beyond has to compete with giants like Amazon, Walmart, and Target.
However, the brand is looking to carve out a niche in retail and bring in old and new customers who may be interested in local assortments and in-store customer experiences that larger chains cannot provide.
Challenges
While Bed Bath & Beyond has showcased surprising strength and resilience, there are still hurdles as tariff policy is at risk of changing again without any kind of insight.
Consumer habits are also always changing, meaning that the brand needs to stay on its toes and adapt quickly. However, having some of its production locally somewhat protects it from changes in import tax.
The Future Ahead
Bed Bath & Beyond’s rise from the ashes has provided an important lesson as other brands face trouble because of tariffs. They may be seen as a threat, but they can drive adaptation and innovation in the right circumstances.
The brand has a bright future ahead and has showcased that it has what it takes to sidestep government policies that normally spell trouble in the retail space.
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