Recently, Kirkland’s, the home goods retailer, was acquired by Beyond Inc. for $5 million after experiencing financial difficulties. Now, following the merger, the company will undergo a rebrand and operational restructuring, including a name change. Here’s what we know so far.
What will Kirkland’s be called?
According to a company statement, Kirkland’s will change its corporate name to The Brand House Collective; however, this change is pending approval at the upcoming annual shareholders meeting on July 24.
Why is Kirkland’s changing its name?
According to Amy Sullivan, CEO of Kirkland’s, from the moment the partnership with Beyond began, it became clear that the brand’s model needed to evolve. A more agile, streamlined, performance-driven organization needed to be built—one rooted in accountability and driven by fresh ideas that deliver results.
This strategy includes the name change to better align with the vision of the partnership, as well as reducing excess inventory, closing underperforming locations, optimizing real estate assets, and enhancing talent across the organization.
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What will happen to Kirkland’s stores?
The company stated that it will move forward with approximately 290 existing stores, which will serve as the foundation for Kirkland’s Home, Bed Bath & Beyond Home, and Overstock.
Additionally, the conversion of Kirkland’s Home stores into Bed Bath & Beyond Home locations is expected to begin this August in Brentwood, Tennessee. A further 75 stores are set to be converted by 2026. As for the website, it will be shared with Bed Bath & Beyond Home.
The company also plans to expand the distribution of private label brands across its omnichannel platforms. Its goal is to position its Home brand as the exclusive private label option for essential products and everyday décor in Bed Bath & Beyond stores. Additionally, it is evaluating opportunities to increase the online distribution of furniture, outdoor items, and rugs.
Why did Kirkland’s close its stores?
The company warned of an approximate 0.6% decline in consolidated comparable sales. Regarding e-commerce, it experienced a 7.9% year-over-year reduction, and the projected net income for the fourth quarter is around $7.9 million, reflecting a 22% decrease.
As a result, they are implementing significant changes in their stores, as well as in their e-commerce operations and brand distribution, with the aim of achieving greater profitability. In this context, stores with underperforming results will be closed.
As part of their strategy to optimize or close underperforming locations, Kirkland’s plans to intensify its focus on product assortment to boost profitability during the lease period. The company also stated that it will close certain locations to ensure its real estate investments align with its new criteria.
Additionally, according to the plan, lower turnover products will be moved to physical stores to improve online shopping options and in-store pickup. The company also mentioned that it has commitments with its suppliers to drive product development and sourcing, which will allow it to offer selected Kirkland’s Home items for each of its brands across omnichannel platforms.
How Many Stores Did Kirkland’s Close?
The company stated that the closures affected 6% of its underperforming stores. Prior to the closures, it operated 317 locations across 35 U.S. states.
