UPDATE: April 6, 2022: Five months after announcing their partnership, Kroger and Bed Bath & Beyond announced on Wednesday the launch of their new e-commerce marketplace. 

The multi-category collaboration extends the reach of both companies by offering items like bedding, storage and baby furniture from Bed Bath & Beyond and its Buybuy Baby chain on Kroger’s Ship marketplace.

The e-commerce site says it carries 25,000 "home and baby favorites" from Bed Bath & Beyond and Buybuy Baby. Kroger shoppers will be able to shop Bed Bath & Beyond's store brands like Nestwell, Haven, Simply Essential, Our Table, Wild Sage, Squared Away, Studio 3B and H for Happy, as well as national brands.

Shoppers can get free shipping and fuel points for Bed Bath & Beyond and Buybuy Baby products, according to the marketplace site.

“We're also well underway with the planning and design of our Kroger in-store pilot program and look forward to its launch later this year,” John Hartmann, chief operating officer of Bed Bath & Beyond and president of Buybuy Baby, said in Wednesday's announcement.

Dive Brief:

• Kroger has teamed up with Bed Bath & Beyond on a multi-category omnichannel collaboration, the grocer announced on Tuesday. 
• Starting early next year, the grocer will offer a selection of the "most sought-after" products from the home merchandise retailer and its Buybuy Baby chain on Kroger.com and also launch small-scale store pilots at select Kroger locations. 
• The partnership builds on Kroger's evolving omnichannel strategy and is its latest move beyond grocery to give customers a one-stop shopping experience.

Dive Insight:

As many grocers diversify and expand their offerings, Kroger is looking to grow its home and baby assortment by linking up with a nationally recognized retailer.

"Bed Bath & Beyond has a compelling portfolio of products that complement the items our customers already love to shop," Kroger Chairman and CEO Rodney McMullen said in the announcement.

Kroger said the selection of items from Bed Bath & Beyond will include popular products like bedding, storage and baby furniture, providing a mix of private label and national brands.

The Cincinnati-based grocer did not say how many stores or which locations will have the branded shop-in-shop experience. Meanwhile, the online collaboration will be enabled by the grocer's Ship marketplace.

Kroger is looking for ways to build out its assortment online as more shoppers turn to the channel for groceries, home goods and more. Last year, it launched its online marketplace focusing on specialty and international products. Combining food with baby furniture offers a way to further connect with shoppers at milestone moments. 

"[W]e can help celebrate those first homes, moves to college, growing families and more. Now, when visiting a family member's new home, loved ones can surprise them with a meal and a new set of dishes to serve it on in one convenient shopping experience," Stuart Aitken, Kroger's senior vice president and chief merchant and marketing officer, said in the announcement. 

The Bed Bath & Beyond partnership is the latest retailer tie-up for Kroger, which has also linked up with Walgreens on a store-within-a-store concept at some of the pharmacy chain's locations. In 2018, the grocer collaborated with Alibaba to sell its Simple Truth brand in China.

One-stop shopping, both online and in-store, is gaining traction in the grocery industry. Hy-Vee, for example, has tested several in-store additions in recent months, including fitness equipment showrooms, hybrid eyewear kiosks and nail salons. Instacart has expanded its partnerships with not only grocers, but also with beauty, pet, office supplies and home goods retailers. 

With their national brand recognition, Bed Bath & Beyond and Kroger both stand to benefit from heightened exposure to consumers. Mark Tritton, Bed Bath & Beyond's president and CEO, said the Kroger tie-up underscores his company's authority in the home and baby categories and also provides opportunities to strengthen and grow its customer base. 

The announcement comes just a day after Bed Bath & Beyond, Buybuy Baby and Uber said they are collaborating to launch a new baby and kids vertical in the Uber Eats app.