A key piece of retail history is officially making its return to the American shopping landscape. Neighborhood Intelligence, the parent company of the newly re-envisioned retail brand, is opening a brand-new stand-alone Bed Bath & Beyond store that closely mirrors the layout and charm of the original, beloved locations that once anchored shopping centers nationwide.
The 19,000-square-foot retail destination opens its doors on Saturday in Glendale, Arizona, and features the familiar mainstays that made the brand a household name for decades. Shoppers walking into the new location will be greeted by the classic towel wall, extensive bedding displays, and, true to the brand’s heritage, the famous coupons that drove foot traffic for generations.
“We’re bringing back the things customers have always loved, from the iconic shopping experience to the brands, products, and value they remember, while introducing new ways to help customers make the most of every room in their home,” Neighborhood Intelligence President Amy Sullivan said in a statement regarding the grand opening.
This Arizona store launch represents a major milestone in a broader, highly ambitious turnaround effort by Neighborhood Intelligence. Over recent months, the parent company has engaged in an aggressive portfolio expansion, which has included acquiring fellow retail mainstays like Kirkland’s and The Container Store. Alongside these corporate acquisitions, the company has been meticulously recalibrating its brick-and-mortar footprint to optimize profitability and streamline operations.
The evolution of the company’s retail strategy has seen various iterations recently. Earlier in the spring, Bed Bath & Beyond debuted a co-branded store concept alongside The Container Store. That hybrid retail experiment combined key merchandising elements from both banners, successfully blending organizational products, professional design services, and a much broader assortment of home goods under one roof.
However, operating a massive retail network requires difficult decisions, particularly when dealing with legacy real estate that fails to meet performance expectations. As part of its ongoing store optimization strategy, Neighborhood Intelligence is actively shuttering underperforming locations inherited from its recent corporate acquisitions. CEO Marcus Lemonis told financial analysts on Thursday that the company will have closed 11 Container Store locations by the end of the year and is currently in the process of shutting down 39 Kirkland’s stores. According to Lemonis, those specific locations were four-wall negative, meaning they were losing money at the individual store level, and many were facing lease expirations in January.
Interestingly, the new Arizona Bed Bath & Beyond store opening this weekend is taking over a former Container Store location that also suffered from being four-wall negative, turning an underperforming asset into a fresh opportunity for the legacy banner.
Despite the heavy transactional activity that has defined the company’s recent past, Neighborhood Intelligence is steering its corporate ship in a new strategic direction. Recent high-profile deals involving Fathom Holdings and F9 Brands were called off in recent months, and Lemonis confirmed to analysts that the company is no longer pursuing any additional corporate acquisitions.
“We believe there’s significant opportunity with the businesses we already own, and our priority is to make them work better together and to grow organically and to improve profitability,” Lemonis explained during the earnings call.
This shift toward organic growth and operational efficiency was front and center in the company’s third-quarter earnings report, also released on Thursday. Neighborhood Intelligence reported that total revenue surged by 98% to reach $509 million. The vast majority of this top-line growth was driven directly by its recent corporate acquisitions, which contributed $229 million to the total revenue pool. When those acquisitions are stripped out to look at core performance, the company’s baseline revenue increased by about 9%, supported by a gross margin of approximately 34%.
The company’s digital operations proved to be a major bright spot during the third quarter. E-commerce revenue demonstrated remarkable strength, increasing by 9%—marking the largest e-commerce growth rate the business has experienced in 19 quarters. This digital surge was primarily propelled by an extraordinary 75% growth rate at Overstock.com.
Meanwhile, the core Bed Bath & Beyond banner demonstrated steady operational health, growing its revenue by $23 million compared to the same period in the previous year. This was bolstered by a 1.5% growth in total order volume and a notable 7.4% increase in average order value.
“What gives me confidence is that we’re not relying on a housing recovery to make this business work,” Lemonis told analysts, addressing broader macroeconomic headwinds facing the retail and housing sectors. “Consumers are dealing with affordability challenges and historically low housing turnover, but they continue to spend on maintaining, organizing, and improving their homes. Our brands are positioned to serve those needs today, with additional opportunity as housing activity improves.”
Even as revenue surged, profitability pressures remained evident as the company absorbed its new acquisitions. Losses in the period expanded, with the operating loss growing to $62 million, up from about $12.5 million in the year-ago period. Additionally, the net loss widened to over $26 million, compared to a net loss of $4.5 million during the same quarter last year.
Looking ahead, Neighborhood Intelligence remains optimistic about its financial trajectory. The company is projecting fourth-quarter sequential revenue growth of 5% over the third-quarter results, a forecast that already accounts for the planned store closures currently underway.
For the full year 2027, consolidated revenue is expected to land in the range of $2 billion to $2.1 billion, with gross margins projected to hover between 33% and 34%. Over the longer term, Lemonis envisions the company’s gross margin stabilizing even higher, sitting closer to 37%.
“If you look at the margin improvement that our company has experienced over the last, call it, eight quarters, we know how to generate margin, we know how to eliminate those unprofitable SKUs, those unprofitable vendors, and how to properly calibrate assortment and sourcing,” Lemonis said. He specifically highlighted the value of the global sourcing team that joined the corporate fold as part of the Kirkland’s acquisition.
Reflecting on past industry missteps, the executive did not shy away from critiquing the strategic errors made by the original Bed Bath & Beyond leadership team in the years leading up to the company’s dramatic Chapter 11 bankruptcy filing in 2023. Among the primary mistakes, Lemonis pointed to the previous management’s decision to move away from major brand partners, such as Shark, Cuisinart, and Laura Ashley, which ultimately alienated core shoppers.
In contrast, Lemonis argued that The Container Store possesses the “perfect balance” of stocking the right name-brand products that instill consumer confidence, while simultaneously maintaining pricing flexibility. This is achieved, he noted, through global product sourcing that successfully breaks the elasticity curve to stimulate consumer demand while securing the strong profit margins necessary to achieve the company’s 37% gross margin target.
However, executing this refined retail strategy has required cutting ties with certain established partners. On Thursday, home organizational company and lifestyle brand The Home Edit publicly announced that its products will be permanently removed from The Container Store. The lifestyle brand originally launched an exclusive, high-profile collection within The Container Store back in 2019.
“We’ve been partners for a really long time, and we’re pretty surprised,” said The Home Edit co-founders Clea Shearer and Joanna Teplin in a video statement posted to the brand’s official Instagram account on Thursday. “You might have noticed that The Container Store, slash Bed Bath & Beyond, is going through some changes, and it appears to us that they’re working out what their identity is. And it doesn’t include us.”
While Shearer and Teplin indicated that the brand would be moving “very shortly to some pretty exciting retailers,” they did not disclose specific partnership details. In response to an inquiry from retail media, Neighborhood Intelligence President Amy Sullivan pushed back against the public characterization, stating that The Home Edit’s message was “not fully accurate.”
“When we acquired The Container Store, a 1-year agreement was in place that expires in December of 2026,” Sullivan explained via email. “We are not signing a new agreement because the rate of sale of the product doesn’t support a reorder, but we do still have the product in our stores today and will continue to sell through the remaining assortment and honor the relationship with The Home Edit.”
As it phases out certain legacy lines, The Container Store has actively introduced fresh inventory across multiple home categories, including bathrooms, bedrooms, and kitchens. This merchandising shift happens concurrently with what Sullivan described as “sort of a recalibration and a revitalization of their legacy storage and org department.”
“Making our stores more productive is only part of the opportunity. We also need to improve the economics behind the products we sell,” Sullivan emphasized. “Through Kirkland’s, we acquired product development and global sourcing capabilities, including direct factory relationships. Those capabilities allow us to complement national brands with differentiated products, improve product costs, and strengthen margins. We expect meaningful benefits from new sourcing and assortment programs beginning in the middle to latter part of 2027.”