Dive Brief:
- BuyBuy Baby plans to close its entire physical store footprint by the end of this year, “transforming into a digital-first brand” and allowing it to focus “all our energy on providing an exceptional online shopping experience.” Store closing sales began on Friday and the banner will transition to an online-only business, the company said in an FAQ on its website.
- The retailer said its decision to shift to online-only retail is in response to feedback from its customers and business partners. “We understand this may be disappointing news, and we want you to know this wasn’t a choice we took lightly,” the company said.
- BuyBuy Baby listed 10 stores in operation in seven states on its website as of Friday. The company’s FAQ did not provide any information on what’s next for store employees, and BuyBuy Baby did not immediately respond to Retail Dive’s request for comment.
Dive Insight:
For the second time in about a year, BuyBuy Baby stores are going out of business.
“The demand of consumers has changed, and as such, so are we,” BuyBuy Baby said in a Friday statement to Retail Dive. “Based on the feedback from our loyal customers, we are shifting away from the brick-and-mortar model for the near future and redefining ourselves as a digital-first brand.”
The first instance was last summer when no buyers came forward to purchase the retailer’s stores during a Chapter 11 bankruptcy auction of the assets of former parent company Bed Bath & Beyond. New Jersey-based Dream On Me won the BuyBuy Baby brand, intellectual property and digital assets at auction for $15.5 million, with plans to shutter its store footprint.
The company bought 11 store leases in seven states for $1.17 million in a separate auction and relaunched the company in 11 stores last fall. Ahead of the store relaunch, BuyBuy Baby CEO Pete Daleiden said in a statement that the retailer sought to position itself as a “go-to destination for all parents, caregivers, and families seeking thoughtfully designed and quality baby and child-focused products, and exceptional customer service.”
Under Dream On Me, BuyBuy Baby operated stores in Connecticut, Delaware, Maryland, New Jersey, New York, Massachusetts and Virginia. Its product offering includes baby furniture, clothes, toys, car seats and strollers. Now, those stores are closing and the company’s website is advertising up to 30% off discounts for in-store merchandise, where all sales are final. Buy online, pick up in-store services have also ended.
“By resetting now, we are positioning ourselves for long-term growth and success,” the company said. We’re excited about this new chapter and confident that our renewed focus will create more value for our customers, partners, and team members.”
Founded in 1996 by two former Bed Bath & Beyond employees, Bed Bath & Beyond bought the brand in 2007 for $67 million and $19 million in debt repayment. At the time of Bed Bath & Beyond’s 2023 bankruptcy filing, BuyBuy Baby operated about 120 stores. Overstock.com bought Bed Bath & Beyond’s brand and IP. The company later rebranded itself to Beyond.
Editor’s note: This story has been updated to include additional information from BuyBuy Baby.
