Bed, Bath, and Digital Signage Opportunity

Walking into Bed, Bath, and Beyond (BBBY) this weekend, the first thing I noticed was the retailer's desperate need for digital signage. Products litter every nook and cranny of the store. Bed linens, fans, kitchen appliances, and every other item you could imagine putting in your home, are stacked as far as the eye can see. When did Bed, Bath, and Beyond become the sanctuary for the entire "As Seen on TV" product line?

As I moved through the store, I came in contact with a number of product displays that included 13" CRT monitors. The TV's could barely fit on their stands. Each display area reminded me of my parent's kitchen circa 1990. (Perhaps BBBY got a deal on the TVs when "Crazy Eddie" electronics stores went out of business) The product videos airing on the TV's were blurry at best. The bulky monitors which were placed in each zone of the store made the environment feel outdated and behind the times.

The marketing strategy at the foundation of Bed, Bath, and Beyond's use of in-store video to promote specialized products can't be faulted, but the Company's means of doing so most certainly can. In using old technology, the company actually detracted from its environment rather than improving it. Instead of customizing the video content to best connect with visitors, store management merely decided to press play on product infomercials. Add that to the outdated television sets, and you have a recipe for disaster.

When thinking about the many products and store categories that exist within a Bed, Bath, and Beyond outlet it's very easy to see the amazing benefits the Company would gain in installing digital signage. All a digital signage vendor would do to sell-in such a system would be to build off of the organization's current use of in-store video and explain how modernizing the technology would have a major impact on the company's bottom line.

With almost 900 Bed, Bath, and Beyond Stores across the United States, the Company offers a major sales opportunity for digital signage solution providers. With a diverse range of products and stores ranging in size from 20,000 to 50,000 square feet, a digital signage network within BBBY could prove very profitable to the company. Similar to existing large-scale grocery and retail networks, BBBY could generate supplemental revenue by selling network advertising space to its expansive portfolio of brand partners.

My recommendation for BBBY would be to install a system similar to Walmart's Smart Network. I would deliver unique content to each distinct zone of the store, utilizing eye-level shelf displays to promote individual brands and products. Just as in Walmart stores, I would limit the number of large screen displays, and instead focus on “Endcap Screens” that would advertise the items displayed on key endcaps throughout the store.

So now the only question that remains is which digital signage company is going to jump on this opportunity.

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