Bed Bath & Beyond Partners with Shipt and Instacart for Same-day Delivery | Financial Buzz

Bed Bath & Beyond Partners with Shipt and Instacart for Same-day Delivery

Bed Bath & Beyond (NASDAQ: BBBY) announced Tuesday it has teamed up with Shipt and Instacart to provide customers with same-day delivery. Both Bed Bath & Beyond and buybuy Baby within 48 states will offer the service to consumers that reside in eligible ZIP codes. The service will cost a flat-rate fee of 4.99 for every order under USD39. 

Current Shipt members will be given free, same-day delivery for all orders over USD35 if shopping directly from the Shipt platform, according to the company. 

“The important thing is … to make sure we get this in place before the holidays,” said Bed Bath & Beyond Chief Digital Officer Rafeh Masood. “It’s another way for customers to shop us when safety is top of mind.”

Throughout the pandemic, Bed Bath & Beyond has provided a buy online, pick up in store option, and contactless curbside pickup. For the quarter that ended May 30, the retailers online sales skyrocketed 82% as people desperately bought hand sanitizers, bread makers and diapers.

Similarly, other retailers have also improved their own same-day delivery options. Amazon is now offering the guarantee of delivery in under five hours in select states. Walmart has partnered with Instacart and Target is offering same-day delivery for products including groceries through Shipt. 

“Digital is going to play a very important role this holiday season,” said Masood. 

Previously analysts had underestimated Bed Bath & Beyond compared to larger big-box competitors. Nevertheless, with new recent action being taken within the company, they are back in the running. 

“Change starts at the top,” Baird analyst Peter Benedict said in a note to clients earlier this month. “Bed Bath & Beyond’s leadership team has been overhauled under new CEO Mark Tritton. Importantly, business transformation and omni-channel expertise are common among new hires.”