Visits to Overstock (OSTK)’s newly branded Bed Bath & Beyond website surged in the first several days according to Earnest credit card data, an early sign of success for Overstock’s acquisition of the Bed Bath & Beyond digital IP. Overstock added nearly 60% more visitors year over year (YoY) seven days after the new site launched, a steep acceleration from the low double digit YoY customer decline that Overstock.com experienced for most of summer 2023 . This acceleration comes after management noted “active customers is how [it would] measure the success of this transaction.”
The pronounced increase in new customers tracks with the low customer overlap between the two brands prior to the acquisition. Only 4% to 9% of Bed Bath customers also made a purchase at Overstock over a twelve month period from December 2019 to March 2023. This relatively low overlap and customer growth acceleration suggest that Overstock’s acquisition of the Bed Bath banner is already unlocking a significant number of new customers.