The old home furnishing giant went bankrupt, and Amazon may become the biggest winner

Recently, Bed Bath & Beyond, a 52-year-old American home furnishing retailer, officially filed for bankruptcy. Before June 30 this year, this former home furnishing giant will clear out all its inventory and officially leave the market.

Competition in the market is always fierce. After Bed Bath & Beyond's bankruptcy, Amazon and the home furnishing sellers on its platform may become the biggest beneficiaries.

As Bed Bath & Beyond's last store closes in the future, its customer base is destined to be divided up by competitors such as Amazon, Walmart and Target.

“We are seeing new opportunities emerging in the retail market that will certainly help us capture more market share, particularly in home categories like kitchen and bedding,” Target CEO Brian Cornell told investors on a first-quarter earnings call last week, without mentioning Bed Bath & Beyond by name.

Brandon McDonald, who has worked at a local Bed Bath & Beyond store in Wisconsin for nearly 20 years, said that nowadays if consumers want to buy something, they will go directly to Amazon or go to the Target next door.

These signs are also consistent with the latest data from retail analytics firm Molator, which found that more than two-thirds of Bed Bath & Beyond shoppers would shift their spending to Amazon , followed by Target, Walmart and HomeGoods.

"The ultimate winners are likely to be Amazon, Target, HomeGoods, TJMaxx and Walmart, with the remaining market share likely to be spread among many smaller brands," said Neil Saunders, managing director of GlobalData, in a report shared with CoinMarketCap.

In another survey, 68% of shoppers said Amazon was the shopping platform they would most likely replace Bed Bath & Beyond with.

Target was the second most popular choice, with products in several categories that were very popular with consumers: kitchen and bath items, decor, storage and bedding.

“We were slow to pivot to e-commerce, while our competitors, Target, Walmart, and Amazon, moved quickly and captured online market share,” Bed Bath & Beyond Chief Financial Officer Holly Etling wrote in bankruptcy filings.

Its financial report data shows that Bed Bath & Beyond 's sales plummeted from $11.1 billion in 2019 to $5.4 billion in 2022. At the same time, Amazon and Target's revenue has been growing every year.

The collapse of the towering trees may provide more "nourishment" for more seedlings to emerge. Many Amazon sellers in China have laid out their home furnishings, but the situation in this segment has not been optimistic in the past two years.

With the bankruptcy of Bed Bath & Beyond, the competitive pressure in the industry will be alleviated. Coupled with the influx of new consumer groups, home furnishing sellers on the Amazon platform may be able to reap a wave of dividends.

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Bed Bath & Beyond