Ahead of the holiday season, Bed Bath & Beyond Inc is partnering with Shipt to offer same-day delivery to customers to further boost its online sales. The deliveries will be offered through the platforms of both the companies.
Following the successful rollout of Buy-Online-Pickup-In-Store and contactless Curbside Pickup facilities earlier this year, Bed Bath & Beyond (BBBY) is now expanding its omnichannel services with the launch of same-day delivery with Shipt on orders placed through the company’s website and buybuy Baby platform as well.
Alternatively, Shipt consumers can choose Bed Bath & Beyond or buybuy Baby on shipt.com or on the app. Consumers with an annual Shipt membership will receive free delivery on all orders over $35. When ordering online at Bed Bath & Beyond, consumers will have to pay a flat-rate fee of $4.99 for orders over $39 to use the same-day delivery facility.
“We’re thrilled shoppers will now easily connect customers with everything from wall decor to non-stick pans to car seats, all while helping Bed Bath & Beyond and buybuy BABY reliably meet the demand for same-day delivery of their merchandise” cheered Kelly Caruso, Shipt’s CEO.
Last week, Bed Bath & Beyond reported better-than-anticipated 2Q comparable store sales growth of 6%. The 2Q sales of $2.69 billion beat the Street consensus of $2.63 billion driven by the 89% Y/Y growth in digital comparable sales.
On Oct. 2, Wedbush analyst Seth Basham raised BBBY’s price target to $25 (21.3% upside potential) from $18 and maintained a Buy rating following the 2Q results. Besham stated that the company’s sales benefited from strong marketing for the back-to-school season and continued growth in online sales.
He added that several underlying drivers of the results will continue in the near-term and drivers of the stronger profit in the medium team are becoming clear. (See BBBY stock analysis on TipRanks)
Currently, the Street is sidelined on the stock. The Hold analyst consensus is based on 4 Buys, 7 Holds and 4 Sells. Worryingly, the average analyst price target of $14.69 implies downside potential of about 28.7% from current levels- with shares already up 19.1% year-to-date.
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