Dive Brief:

• Bed Bath & Beyond on Wednesday outlined a plan to launch at least eight private labels this year within the bed, bath, kitchen and dining, storage and organization, and home decor categories. The home goods retailer said six of the eight brands will launch in the first six months of its fiscal year, according to a company press release.

• The first of the brands, Nestwell, is set to launch later this month and will feature bedding and bath products. The retailer will relaunch bath brand Haven in April, and debut Simply Essential, which will focus on household products.

• The announcement comes after the company in October revealed plans to launch at least 10 private labels over the next 18 months as part of a broader three-year turnaround plan.

Dive Insight:

Plotting eight brand launches this year signals Bed Bath & Beyond is charging forward with its turnaround plan.

But private labels are something CEO Mark Tritton, who arrived at the retailer in late 2019, is more than familiar with. Tritton previously served as Target's chief merchandising officer and oversaw the launch of more than 30 private labels in two and a half years. Prior to that, he worked at Nordstrom Product Group where he managed more than 50 private label brands across both physical and digital channels.

Investors in the past have criticized Bed Bath & Beyond's lack of private labels. In fact, private labels account for just 10% of the retailer's sales. Comparatively, owned brands make up one-third of Target's sales, according to Telsey Advisory Group.

Among Target's store brands, 10 have generated $1 billion in sales, with the most recent being its All in Motion activewear line, which reached the milestone within its first year of launching.

With the planned brand launches, however, Bed Bath and Beyond expects to grow its sales penetration from private labels to 30% within the first three years.

The retailer on Wednesday also announced that it will launch thousands of new products exclusive to Bed Bath & Beyond while simultaneously cutting thousands of underperforming brands, labels and products. All of this is part of a broader three-year turnaround plan, which includes resetting its merchandise assortment, remodeling around 450 stores and improving its digital experience.

"In 2020, we rebuilt and stabilized the foundations of our business while creating growth," Tritton said in a statement. "As we enter our Company's 50th year, we look forward to welcoming our customers to the new Bed Bath & Beyond, with a truly customer-inspired assortment, reimagined stores, an enhanced omni-always, digital-first shopping experience, and exceptional value across every price point."