Bed Bath & Beyond offers an exchange for Toys ‘R’ Us gift cards
Source: Toys “R” Us; Photo: Getty Images

Bed Bath & Beyond offers an exchange for Toys ‘R’ Us gift cards

If you hold a Toys “R” Us (TRU) gift card, you have until April 21 to use it at one of the chain’s stores. If shopping at one of the stores the chain is in the process of shuttering doesn’t appeal to you, you have another option — exchanging your card for store credit at Bed Bath & Beyond (BBY). The latter, however, is only good through 11:59 p.m. tomorrow night.

The BBY offer isn’t a one-for-one match — cardholders receive only a portion of its value. A TRU gift card worth $100 will be valued as a credit of $64.20 at one of BBY’s stores or on its site. Cards with a value of $20 or more can be exchanged online through CardCash.com. BBY is not handling the card exchanges in its stores.

BBY, which also operates buybuy Baby stores, is considered to be among the retailers that will benefit from the demise of TRU and its Babies “R” Us (BRU) chain. Consumers that have registries with BRU can transfer them to buybuy Baby and receive free samples and coupons as part of a goody bag. The chain operates over 100 stores in the U.S. in addition to an e-commerce site.

“We understand the effort that goes into creating a registry and we know this is a stressful time for anyone who has a registry with Babies ‘R’ Us,” a spokesperson for BBY told The Record.

BrainTrust

"Bed Bath & Beyond, even at a credit of just two-thirds the value of another store’s gift card, is doing the consumer a favor. "

Shep Hyken

Chief Amazement Officer, Shepard Presentations, LLC


"They have a history of heavy promotion and discounts so this is just another way to bring in shoppers..."

Michael La Kier

Vice President, Brand Development - IGA, Inc.


"Any time you can increase traffic to your stores, it’s a good thing. Any time you can do that and add good will, you’re doing a good thing better!"

Bob Amster

Principal, Retail Technology Group


Discussion Questions

DISCUSSION QUESTIONS: Will Bed Bath & Beyond’s store credit offer in exchange for Toys “R” Us and Babies “R” Us gift cards bring in new customers? Will buybuy Baby’s offer to transfer baby registries from Babies “R” Us prove successful?

Poll

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Mark Ryski
Noble Member
5 years ago

Toys “R” Us’s demise has created a hole in the market and stranded countless customers with gift cards and a useless gift registry. It’s reasonable and not surprising that other retailers are interested in serving this disenfranchised market. Since moms are likely the main holders of the Toys “R” Us gift cards (perhaps on behalf of their kids) and given the competitive positioning of buybuy Baby, it seems like a sensible move on the part of Bed, Bath & Beyond to try to win these customers over. Whether the program will pay out or not is yet to be seen, but the attempt seems worth the risk.

Bob Amster
Trusted Member
5 years ago

Any time you can increase traffic to your stores, it’s a good thing. Any time you can do that and add good will, you’re doing a good thing better!

Neil Saunders
Famed Member
5 years ago

This is a smart move by Bed Bath & Beyond. It will be well received by customers and also maximizes buybuy Baby’s chances of picking up Baby’s “R” Us’s shoppers.

Of course, given Bed Bath & Beyond’s general propensity to accept any random coupon — even though they are stricter now than they used to be — this move should not really come as any great surprise.

Michael La Kier
Member
5 years ago

From Bed Bath & Beyond’s standpoint this is a smart move to bring shoppers into their stores. They have a history of heavy promotion and discounts so this is just another way to bring in shoppers using that same strategy. However, the shoppers do seem different. It remains to be seen if a couple with a baby jogger on their registry with many sleepless nights in their future will swap this for a fancy new toaster or bedding set.

Shep Hyken
Active Member
5 years ago

Bed Bath & Beyond, even at a credit of just two-thirds the value of another store’s gift card, is doing the consumer a favor. The key is for Bed Bath & Beyond to message in such a way that reflects that. No doubt new customers will be one benefit to Bed Bath & Beyond and buybuy Baby. Customers with unused Toys “R” Us gift cards will want to get what they can. Handled well, Bed Bath & Beyond looks like a hero.

Joan Treistman
Joan Treistman
Member
5 years ago

I agree that the Bed Bath & Beyond offer can bring in new customers. I don’t understand why it’s only until tomorrow. Perhaps someone can explain the rationale. It seems that by the time shoppers learn about the offer it may be over. And then how does that make potential customers feel about Bed Bath & Beyond?

Georganne Bender
Noble Member
5 years ago

This is a smart, competitive move on the part of Bed Bath & Beyond. Completing a baby registry is time consuming so expectant parents will appreciate the easy transfer to buybuy Baby. The free samples and goody bags are a nice value-add. And while the gift card exchange isn’t a one-for-one match it’s still a nice offer. And good PR.

At the end of the day, Bed Bath & Beyond is spreading good will to gain new customers. All is fair in love and retail. Does anyone else remember the days when businesses would rush to take over the telephone number of a competitor that went out of business? Good times.

Craig Sundstrom
Craig Sundstrom
Noble Member
5 years ago

Frequent readers will know my distaste for gift cards, and this is a perfect illustration of why … limited liquidity.

But enough about me; obviously BBB doesn’t have to offer anything, so while I suppose anything should be looked upon as a gift, I also have to think the rather severe limitations on time are going to limit the effectiveness of this offer.

Ricardo Belmar
Active Member
5 years ago

This is a smart move for Bed Bath & Beyond to bring in customers holding TRU gift cards and registries. The short time frame helps add to the sense of “act now” urgency and may very likely drive customers into their stores. While not granting 100% face value of the gift cards, I don’t see this as an issue, since the alternative could be no value at all! It’s certainly worth the effort with little risk to BBB!

Mike Osorio
5 years ago

This is a fairly standard move for retailers in a failed retailer’s competitive set. The only thing I find odd is the offer of only providing a 2/3 valuation to the Toys “R” Us gift card. Getting the baby registry for buybuy Baby, or even just the visit and sale in BB&B from the gift card is valuable, so I would have offered a higher value if not 100%. I also question the short timeline. Extending for 30 days would seem more customer friendly and logical.

Shelley E. Kohan
Member
5 years ago

BBY was very wise to make an attempt to gain market share by accepting the TRU gift cards. However, BBY should give full credit for the gift card if they want to swoop in and get the customer’s attention. With all of the discounting that BBY does, what would be the logic to play it short with partial redemption? Penny-wise, pound-foolish? The only logic for the redemption of about 64% may be the cost involved by the third party to convert the gift cards to BBY. The timing of redemption seems off as well as noted in other posts. Creatively come up with April Madness and extend the deadline to broaden the possibility of a higher redemption rate. Acquisition rates for new customers is high and by accepting the TRU gift cards, BBY can gain market share at a relatively low cost.