Dive Brief:

• As part of its three-year turnaround plan, Bed Bath & Beyond on Monday launched its seventh private label this year, Studio 3B.
• The brand, which Bed Bath & Beyond said is "affordably-priced," includes bedding, bath, accent furniture and decor, according to a company press release.
• The collection of more than 600 products is available in stores and online.

Dive Insight:

Bed Bath & Beyond is well on its way to reaching its goal of launching at least eight private labels by the end of the fiscal year.

The retailer kicked off its private label spree in March with Nestwell, followed by Simply Essential, Our Table, Wild Sage and Squared Away. Bed Bath & Beyond also relaunched Haven earlier this year. The retailer's eighth private label is set to roll out in November, CEO Mark Tritton said on the retailer's most recent earnings call.

But Studio 3B appears to be going after a new customer: urban consumers living in smaller spaces.

"Our homes are now the centers of our lives — where we eat, sleep, attend school, work, entertain, exercise and create," Neil Lick, senior vice president of owned brands, said in a statement. "Studio 3B was developed to stylishly solve the problems of the adaptable home through carefully designed, contemporary furnishings that address everyday needs."

To coincide with the launch of the new brand, Bed Bath & Beyond developed a social media campaign in partnership with interior designer and television personality Jeremiah Brent. The "Studio Sessions" content series will kick off on Wednesday across Instagram and TikTok and will feature videos offering home design tips.

The investment into private labels appears to be paying off. Last week, the company reported it has exceeded its private label penetration goal for the year, with those brands performing even better in Bed Bath & Beyond's recently remodeled stores.

"These new higher-margin owned brands are driving differentiation for Bed Bath & Beyond. In these early stages, we are attracting, engaging, converting new and existing customers and also seeing lower coupon attachment rate," Tritton said on the retailer's second quarter earnings call.

And though its private labels were a bright spot in the quarter, the retailer faced other problems, such as foot traffic declines, sending net sales down 26%. Bed Bath & Beyond also swung into the red, reporting a net loss of $73 million from a profit of $218 million in the year-ago period.