(Bloomberg) -- Bed Bath & Beyond Inc. is introducing a trio of brands it produces to boost margins and refresh its merchandise -- a core part of Chief Executive Officer Mark Tritton's turnaround plan for a retailer that has posted three straight declines in annual sales.
The new lines will roll out by mid-July, timed for what's expected to be robust spending by college kids heading back to school after remote learning. Over the next three years, Tritton wants to triple the portion of sales coming from private-label items, which are more profitable than goods from third-party manufacturers, to 30%. That jump would put it more in line with peers.
With these additions, the retailer will have added six brands that it calls “owned” to its offering this year. In an interview, Tritton declined to say how much of sales are currently coming from products that it makes. Another aspect of this strategy is to lure younger shoppers with more stylish options. The brands -- Our Table (kitchen), Wild Sage (home) and Squared Away (storage) -- will be marketed through social media platforms such as TikTok.
“It's the longer-term strategic engagement that we're looking for,” said Tritton, who arrived in late 2019 from Target Corp. “These launches are well placed for the all-important back-to-college season.”
The shares were little changed at 9:32 a.m. in New York. That came after a 53% gain this year through Tuesday.
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