Seattle – One hasn’t generated a positive quarterly comp since early 2021. The other has been steadily cranking out fat same-store sales increases. So how is Bed Bath & Beyond beating HomeGoods U.S. stores on average spend?
E-commerce makes a big difference, as seen in YipitData’s tracking for the July-August period.
“HomeGoods launched its e-comm store just over a year ago, but the majority of its sales are still from brick and mortar: 99% of HomeGoods GMV [gross merchandise value] for 3Q 2022 was generated by brick-and-mortar sales,” noted Chelsey Brigisdottir, research analyst for YipitData.
In contrast, 31% of Bed Bath & Beyond’s GMV came from online purchases during the quarter.
“Furthermore, average consumer spending was different between online and brick-and-mortar,” added Brigisdottir.
Bed Bath & Beyond’s average consumer spending for September was $95 online vs. $81 at its brick-and-mortar stores. Thus, BBB beats Home in average merchant spend despite that fact that Q3 orders per customer at HomeGoods (1.6) outpaced those at Bed Bath (1.4), she said.
That contrast has been consistent across the past 5 quarters, according to YipitData.
The question becomes when the script will flip. Bed Bath & Beyond, which operated 769 locations as of September 2022, is now in the process of shuttering 150 stores. HomeGoods was operating 862 units as of July 30 and will open another 18 by the end of November.
One thing both banners have in common in recent months?
“Consumer spending for Bed Bath & Beyond and HomeGoods has remained mostly stagnant,” said Brigisdottir.