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Overstock.com has undergone multiple image transformations throughout the years. From an inventory liquidator to a crypto player, it has now settled on a more homey identity. In June, the US furniture retailer acquired the brand and customer lists of the bankrupt Bed Bath & Beyond for $21.5mn.
While Overstock may have left its liquidator roots behind years ago, its name has remained. But that is no longer the case. This week, the company announced a name change to Bed, Bath and Beyond, hoping to capture a warmer brand image without the complexities of physical stores.
However, a friendlier brand alone won’t solve Overstock’s problems. Prior to adopting the Bed, Bath logo, Overstock experienced a significant drop in business. Consumers had shifted their preferences towards purchasing experiences rather than goods. Overstock even cited the Taylor Swift concert tour as an example of this shift.
In the first half of this year, Overstock’s revenue dropped by a quarter compared to 2022. An update from the company revealed that revenue from July 1 to early September was still declining at a mid-teens pace, although the number of orders was starting to grow. As a result, Overstock shares declined by 5% on Thursday and have nearly halved since early August.
The Bed Bath & Beyond rebranding is a clever move, but merging two distinct merchandise themes during a period of challenging consumer spending risks leaving everyone dissatisfied.
Overstock gained notoriety through its former CEO, Patrick Byrne, known for his frequent discussion of conspiracy theories. Byrne pivoted Overstock into the crypto industry before resigning in 2019 following his admission of an affair with a Russian agent. Now, Overstock’s crypto and blockchain segment is listed within equity investments on its balance sheet, but the value of this segment has been volatile, falling from around $300mn to $200mn in the first half of this year.
Adopting the brand of one part of the company is relatively easy. The real challenge lies in integrating the two halves of the business into a cohesive whole.
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