Bed Bath & Beyond Locations Are Claimed by Retailers

After the closing of its business, Bed Bath & Beyond locations that have been abandoned are now all being claimed and transformed by other companies. In the expansive industry of retail, bankruptcy filings often lead to unexpected opportunities. That was the case when many businesses, seeking to expand their reach, swooped in to fill the void left by Sears, Toys“R”Us, and Circuit City.

This year marks the first holiday shopping season in over half a century without physical Bed Bath & Beyond stores. The company, which shuttered its remaining 360 stores along with 120 buybuy BABY outlets earlier this year, is known as one of the most significant retail bankruptcies in recent history. However, its legacy continues online thanks to Overstock.com, which purchased the brand and relaunched it on the web.

The bankruptcy proceedings of Bed Bath & Beyond have left hundreds of vacant stores, which have turned out to be goldmines for both retailers looking to expand and companies seeking unique spaces. Replacement occupants now range widely from big-name chains like Macy’s, HomeGoods, Burlington, and Michaels to entertainment spots like trampoline parks and indoor pickleball courts.

The attractiveness of these empty Bed Bath & Beyond stores comes from the scarcity of new large spaces. Due to the 2008 financial crisis and the surge of online shopping, the creation of new retail locations has markedly decreased, leading to historically low retail vacancy rates.

Many of the former Bed Bath & Beyond locations — typically in suburban areas, measuring under 50,000 square feet — embody an appealing trend for retailers. Nowadays, companies lean toward smaller spaces, reducing rent and labor costs in the face of an increasingly digital shopping environment. Macy’s, for instance, is launching smaller establishments called “Market by Macy’s” in old Bed Bath & Beyond buildings.

Burlington Stores has already occupied 44 former Bed Bath & Beyond locations.

“Some of our best stores were created from carved-up Kmart or Sears locations.”

Michael O’Sullivan, Burlington Stores CEO, via CNN

Despite the endless chatter about the so-called “retail apocalypse,” physical stores continue to hold significant importance. Notably, growth has been most pronounced in the discount segment of retail, drawing in budget-conscious shoppers.

Bed Bath & Beyond locations have proven to be a hot commodity, with rents soaring up to 50% higher than the original price. Commercial real estate investment firm CBRE said that landlords are exploiting this trend, often subdividing these spaces. Kimco Realty, which owns 26 former Bed Bath & Beyond leases, reported that new leases are 38% higher than previous ones.