Dream On Me, the company that acquired BuyBuy Baby’s brand and digital assets for $15.5 million during Bed Bath & Beyond’s bankruptcy auction in July 2023, has announced the closure of all its remaining physical stores. The decision marks a significant shift in the retailer’s strategy, moving away from brick-and-mortar locations to focus on becoming a digital-first brand.
BuyBuy Baby, which specializes in baby clothing, furniture, and accessories, had been operating 10 stores across seven Eastern states: Connecticut, Delaware, Maryland, Massachusetts, New Jersey, New York, and Virginia. These locations were part of the 11 store leases purchased by Dream On Me for $1.7 million during the auction.
The retailer cited changing consumer demands as the primary reason for this strategic pivot. In a statement to Retail Dive on October 18, BuyBuy Baby explained, “The demand of consumers has changed, and as such, so are we. Based on the feedback from our loyal customers, we are shifting away from the brick-and-mortar model for the near future and redefining ourselves as a digital-first brand.”
As part of this transition, BuyBuy Baby has initiated store closing sales, which began on October 18. All purchases made during these sales will be final, with no returns accepted. However, items bought before October 18 will still be subject to the standard return policy. The company plans to complete the closure of all physical stores by the end of the year.
Customers holding BuyBuy Baby gift cards will have until October 31 to use them in-store. After this date, gift cards can only be redeemed online at buybuybaby.com. The retailer has also discontinued its buy-online and pick-up in-store service, as well as its in-store price match policy, effective October 18.
Despite the closure of physical locations, BuyBuy Baby’s online presence will continue. The company’s website, buybuybaby.com, will remain operational, and customers will still be able to access the baby registry service through the online platform.
This development comes as part of a larger trend in the retail industry, with several major chains announcing store closures in recent months. Rite Aid, which filed for bankruptcy in October 2023, closed over 800 stores before exiting bankruptcy in September 2024. Walgreens Boots Alliance recently revealed plans to shutter 1,200 underperforming stores over the next three years, with 500 closings scheduled for fiscal year 2025. CVS is also expected to close 300 stores in 2024 as part of its previously announced plan to close 900 locations over three years.
BuyBuy Baby’s history dates back to 1996 when it was founded by Richard and Jerry Feinstein, sons of Bed Bath & Beyond founder Leonard Feinstein. In 2007, Bed Bath & Beyond acquired the baby products retailer for $67 million. Before Bed Bath & Beyond’s bankruptcy filing in 2023, BuyBuy Baby operated approximately 120 stores nationwide.
The closure of BuyBuy Baby’s physical stores represents a significant shift in the retail landscape, highlighting the growing importance of e-commerce and the challenges faced by traditional brick-and-mortar retailers. As consumer preferences continue to evolve, more companies may follow suit in prioritizing their digital presence over physical storefronts.