Case Study of Buybuy Baby

Baby was founded in 1996, and had 8 stores in just four states (New York, New Jersey, Maryland and Virginia) when it was purchased by the home furnishings retailer Bed Bath and Beyond, Inc.. The purchase was announced Thursday, March 22, 2007 for approximately $67 million.

Bed Bath & Beyond Inc. , along with its subsidiaries, is a chain of retail stores, operating under the names Bed Bath & Beyond (BBB), Christmas Tree Shops (CTS), Harmon and Harmon Face Values (Harmon) and buybuy BABY. In addition, the Company is a partner in a joint venture, which operates two stores in the Mexico City market under the name Home & More.

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The Company sells an assortment of domestics merchandise and home furnishings, which include food, giftware, health and beauty care items, and infant and toddler merchandise. As of February 27, 2010, Bed Bath & Beyond Inc.

operated 1,100 stores located in 49 states, the District of Columbia, Puerto Rico and Canada, including 965 BBB stores operating in 49 states, the District of Columbia, Puerto Rico and Canada; 61 CTS stores operating in 15 states; 45 Harmon stores operating in three states, and 29 buybuy BABY stores operating in 14 states. uybuy Baby is a high-end retailer dedicated to delivering an exclusive selection of products including but not limited to baby furniture, car seats, high chairs, pack n plays, complete feeding, safety, bath, health and nursing needs, toys and complete lines of infants and toddlers clothing. Their wide array of products together with their unmatched commitment to customer service offers the ideal shopping experience for new and expectant parents.

A customer’s advantage by shopping at buybuy Baby is the chance to walk out with a product that is exclusive, high-end and not easily found in other stores. uybuy Baby targets soon to be parents. By having the expectant parents create a registry, they are opening the opportunity for their friends, families, and or co-workers to shop from the “wish-list”, which in turn, provides more business.

There is no advertising for buybuy Baby other than coupons. No television, newspaper or radio ad. What they have to their advantage is word of mouth. This company relies on word of mouth to get their message across. Seeing how they rely so much on word of mouth, it brings them to appreciate the common customer and give them the exceptional service that isn’t guaranteed elsewhere.

There are many retailers competing with buybuy Baby such as Babies R’Us, Toys R’ Us, Walmart, Target, and Baby Depot to name a few. What separates buybuy Baby from such stores is the value and uniqueness of a product, exceptional customer service and a professional work environment. With buybuy Baby going under Bed, Bath and Beyond’s wing recently, there is absolutely no doubt that buybuy Baby will continue to grow and eventually take over the market. ?