Ikea tells Bed Bath & Beyond and friends, come on over to my pad

DSN Retailing Today, July 11, 2005

PARAMUS, N.J. -- Bed Bath & Beyond is building a paired B3 and Christmas Tree Shop location across the parking lot from the recently opened Ikea in Paramus, N.J. The combined facility is over 100,000 square feet, said Steven Temares, Bed Bath & Beyond president and ceo.

Bed Bath & Beyond has been testing combinations of its three store concepts. Last year, it set up its first Harmon store in south central Connecticut, a new market for the health and beauty aids concept, adjacent to one of its Christmas Tree Shops. The established Christmas Tree Shop offered discount coupons to the Harmon, a chain B3 acquired three years ago and has been expanding beyond its New Jersey heartland.

Christmas Tree Shop, a more recent acquisition largely located in New England, also is expanding under Bed Bath & Beyond's direction. The new Paramus Christmas Tree Shop will benefit from the association with B3, long established in the market. The affinity with Ikea should bring other substantive benefits, and is unique for both companies.

Ikea was doing well on its own account in housewares and its core furniture assortment. Yet, Ikea and B3 assortments overlap relatively little, and good neighbors, said Roth, can make the location even more of a draw for customers.