Bed Bath&Beyond Buys World Market; $495M Deal

Home goods store located in Chesterfield Valley, is expected to become a subsidiary of Bed Bath & Beyond by August, in a $495 million deal between the parent corporations.

Bed Bath & Beyond Inc. said May 9 it would buy home goods retailer Cost Plus World Market. It's an all-cash deal according to Shopping Centers Today.

will continue to operate, and Cost Plus CEO Barry Feld has said he expects the chain would expand under its new partnership. He said it would continue to be headquartered in Oakland, CA.

Bed Bath & Beyond Inc. is a Fortune 500 company ranked No. 304. It is headquartered in Union, NJ. It was founded in 1971, and went public in 1992.

There is no Bed Bath & Beyond store in Chesterfield, but nearby on Manchester Road at Route 141, near Walmart.

The following information was compiled by Shopping Centers Today and can be found on the website of International Council of Shopping Centers:

The two home goods chains have worked together for two years, with Bed Bath & Beyond testing Cost Plus-style specialty food departments in several of its stores. That trend will accelerate after the acquisition, according to Shopping Centers Today.

“We and Bed Bath & Beyond were very encouraged by the results of these in-store tests over the past year and a half,” Cost Plus CEO Barry Feld wrote in a letter announcing the deal to his employees.

“The tests showed that our best-in-class product development and sourcing capabilities, which as you know includes our food and beverage businesses, could help generate in-store traffic and sharpen the edge against online retailers,” he wrote.

“Bed Bath & Beyond expects to grow its food and beverage departments within its stores and, over time, hopes to explore with us other opportunities to enhance the customer shopping experience in all its concepts.”

Feld said he doesn’t expect any World Market stores to close. He expects the chain to expand to new geographical regions with backing from its new parent.

The Union, NJ–based Bed Bath & Beyond operates 1,173 stores and earned $351.0 million in its fiscal fourth quarter ending February 25, 2012, an increase of approximately 32 percent form the same period a year ago. Comparable store sales grew approximately 6.8 percent during the quarter. 

Oakland, CA–based Cost Plus, Inc., operates 259 stores under the World Market, Cost Plus World Market, Cost Plus Imports, and World Market Stores banners in 30 states, said same-store sales increased 7.6 percent in the fourth quarter of 2012, its most recent reporting period. Net income was $17.7 million, compared to $4.7 million for fiscal 2010.