In the 1980s, a new type of specialty retail chain started to emerge: “category killers.” The stores’ powerhouse business model was aimed at giving shoppers access to every different size, style and color of a product imaginable – all in one place and at reduced prices.
“Traditional retailers were swimming in debt.” Bed Bath & Beyond was an archetype of the category model for home furnishings. Founded in 1971 as Bed ‘n Bath as a small linen and bath store, the company changed its name to Bed Bath & Beyond in 1987 to reflect its expanded merchandise selection and built larger superstores. It stacked linens, towels, pots and pans high to the ceiling, using coupons to draw shoppers into stores.
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