By Bill Read
May 2024
What new stores are opening in former Bed, Bath & Beyond locations?
Yes, the former spaces are leasing fast.
721
total stores
268
tracked by category use
37%
identifiable new stores
Report Highlights
- The retail landscape is witnessing a significant transformation as former Bed Bath & Beyond stores are repurposed into a variety of new shopping destinations. This change comes in the wake of Bed Bath & Beyond’s bankruptcy proceedings, which led to the closing of all its stores.
- At one time, it was a MUST to have them in your shopping center. Hundreds of power shopping centers chased after them as merchants.
- That was until all the stores closed by June of 2023.
- Since then, it’s been a mad rush for many retailers to backfill these amazing locations.
- Not even a year later over 268 locations have been snapped up by retailers looking to find space in a space-constrained market.
If you or your clients are aware of any of the spaces on the list being filled, please send Bill Read the information and he will add it for our next update.
It’s No Secret: Burlington Takes the Lead
Leading the charge in this retail renaissance is Burlington Stores, which has acquired the lion’s share of the leases. The off-price retail giant has taken over 73 former Bed Bath & Beyond locations.
In fact, Apparel led the charge in the most amount of uses backfilled. We track over 103 clothing stores opening in BBBY spaces. While Burlington was the most aggressive, Nordstrom Rack took 11, Sierra Trading 6, and Ross 5. Hundreds of power shopping centers chased after them as merchants.
Download the report to continue…
The Read Report
Industry report on trends with commercial retail real estate. Researched and written by Bill Read.
Featured by CoStar
Retail Armageddon?
Ollie’s Bargain Outlet has already agreed to buy 11 of the 99 Cents Only’s leases and owned stores in Texas, according to court documents. And Dollar Tree wants 58 of the discounter’s stores, Bill Read, executive vice president at Retail Specialists, posted on LinkedIn.
“Demand for space is hot,” Read wrote.
Still, filling the vacancies of bankrupt retailers takes time. Bed Bath & Beyond, which closed all its stores a year ago, was known in the real estate industry for having attractive locations. Even so, of the 724 former home goods stores Retail Specialists is tracking, just 290, or 40%, have new tenants.
Bed Bath & Beyond offers a case study of who is taking over bankrupt retailers’ space. Apparel sellers lead the pack, with Burlington snapping up 75 locations, followed by Nordstrom Rack with 12, Ross with nine, and Sierra Trading with six, according to Retail Specialists.
Featured by ICSC
Where Did Most New Retail Space Deliver in Q1?
Status Check: Backfilling Bed Bath & Beyond, and Much More
Bed Bath & Beyond’s former stores rapidly are filling with new tenants. Less than a year after the chain closed 721 stores, 268 have been leased by new tenants, according to a report from Retail Specialists executive vice president Bill Read.
Apparel chains are the most active tenants moving into former Bed Bath & Beyond real estate, the report said. Burlington alone has 73 of the former Bed Bath & Beyond locations. Clothing stores opened in 103 former Bed Bath & Beyond stores. Nordstrom Rack backfilled 11, Sierra filled six and Ross Dress for Less filled five. Among the diverse users taking over the stores: Aldi, an auto dealership, Floor & Decor, H Mart, Hobby Lobby, Lidl, Macy’s, Planet Fitness, pickleball venues, Sprouts Farmers Market and Total Wine & More.
About Retail Specialists
Retail Specialists, LLC (RSI) is the premier retail real estate services firm in the south. We are committed to long-term relationships in property management, retail representation, development, and leasing and brokerage. Founded in 2005, we’ve thrived through tough times and shine under pressure. A unique mix of experience, technology, and data have proven successful in a business we love.
Bill Read
Executive Vice President
CORPORATE SERVICES, LEASING
404.307.2116
bill.read@retailspecialists.com
