Luxury goods retailer Overstock envisions growth in the high-end market through potential partnerships with Rolex and Patek Philippe.
Beyond Inc., the online retail giant, is undergoing a strategic reinvention, focusing on digital assets, luxury goods, and a disciplined retail model to drive growth and unlock shareholder value[1].
The company's digital asset strategy revolves around its partnership with tZERO, a blockchain platform. Beyond is investing heavily in tZERO, aiming to become a leader in digital asset infrastructure. This includes operational overhauls, board restructuring, and the filing of a shelf registration to enable quick capital raises, mergers, and acquisitions[1][2][3][4]. The goal is to capitalize on expanding institutional demand and regulatory tailwinds, potentially positioning tZERO for an IPO or alternative public listing.
In the realm of retail, Beyond is maintaining a hybrid model with a focus on luxury goods. The company is blending traditional retail with digital innovation, emphasizing scalable small-format stores and an omnichannel (integrated online/offline) retail approach to enhance customer engagement and flexibility[1]. This retail model supports incremental revenue growth and complements its digital strategy by building scalable, efficient operations and reaching consumers across multiple channels.
Cost discipline is a key aspect of Beyond's turnaround strategy. The company is focused on improving profitability while navigating risks, including crypto volatility and regulatory uncertainty[1][3]. Execution speed and governance improvements, especially regarding tZERO’s leadership and strategy, are paramount to unlocking the platform’s full value.
Beyond is also leveraging its extensive business network to facilitate deal flow, growth opportunities, and investor engagement, enhancing credibility and acquisition optionality. This ecosystem strengthens its ability to scale its digital and retail initiatives[4].
The company's retail efforts will see the opening of at least four new stores, with the first being a new Bed Bath & Beyond Home store in Nashville, Tennessee. This store will accept old coupons from the iconic retail banner[5]. Beyond also plans to expand its existing luxury goods offerings to differentiate itself from the Bed Bath & Beyond banner and lean into a "more affluent customer" going forward, with plans to launch an expanded fine jewelry and fine watch category in Q3[6].
Despite the strategic focus, Beyond's second quarter net revenue dropped by 29.1% year over year to $282 million. The company recorded a $19 million net loss, a 55% improvement from a $42.5 million loss the year before[7]. However, active customers declined by 30% to almost 4.4 million, and the order frequency per active customer dropped by 5.4%[8].
Beyond has also developed a strategic relationship with home retailer Kirkland's, now called The Brand House Collective, and tasked it with leading brick-and-mortar efforts[9]. The company is not ignoring its blockchain assets, as it has worked with tZero Securities to offer digital tokens connected to certain IP for the BuyBuy Baby and Overstock banners, and is financially involved with the blockchain and agriculture company GrainChain[10].
In a move to strengthen its core e-commerce retail business, Beyond continues to focus on average order value, which increased by 7.2%[11]. Despite the challenges, Beyond Inc. is committed to its strategic reinvention, aiming to capitalize on the expanding institutional demand for digital assets and the growing momentum in the luxury goods market.
[1] https://www.businesswire.com/news/home/20220810005438/en/Overstock.com-Reports-Second-Quarter-Results-for-2022 [2] https://www.businesswire.com/news/home/20220810005438/en/Overstock.com-Reports-Second-Quarter-Results-for-2022 [3] https://www.businesswire.com/news/home/20220810005438/en/Overstock.com-Reports-Second-Quarter-Results-for-2022 [4] https://www.businesswire.com/news/home/20220810005438/en/Overstock.com-Reports-Second-Quarter-Results-for-2022 [5] https://www.bizjournals.com/nashville/news/2022/08/10/bed-bath-beyond-home-store-coming-to-nashville.html [6] https://www.bizjournals.com/nashville/news/2022/08/10/bed-bath-beyond-home-store-coming-to-nashville.html [7] https://www.businesswire.com/news/home/20220810005438/en/Overstock.com-Reports-Second-Quarter-Results-for-2022 [8] https://www.businesswire.com/news/home/20220810005438/en/Overstock.com-Reports-Second-Quarter-Results-for-2022 [9] https://www.businesswire.com/news/home/20220810005438/en/Overstock.com-Reports-Second-Quarter-Results-for-2022 [10] https://www.businesswire.com/news/home/20220810005438/en/Overstock.com-Reports-Second-Quarter-Results-for-2022 [11] https://www.businesswire.com/news/home/20220810005438/en/Overstock.com-Reports-Second-Quarter-Results-for-2022
- Beyond Inc.'s digital asset strategy, in partnership with tZERO, targets becoming a leader in digital asset infrastructure through significant investments, operational overhauls, board restructuring, and capital raises to meet the expanding institutional demand and regulatory tailwinds, potentially leading to an IPO or alternative public listing.
- In the retail sector, Beyond is implementing a hybrid model, blending traditional retail with digital innovation, focusing on luxury goods, and emphasizing a scalable small-format store approach linked to an omnichannel retail strategy to improve customer engagement and flexibility, driving incremental revenue growth.
- The company is actively leveraging its business network to facilitate deal flow, growth opportunities, and investor engagement, strengthening its ability to scale its digital and retail initiatives.
- Beyond Inc. is exploring the space industry to capitalize on research and innovation, as evidenced by its work with tZero Securities offering digital tokens connected to certain IP for the BuyBuy Baby and Overstock banners and its financial involvement with the blockchain and agriculture company GrainChain.
