Photo: Tony Webster / Wikimedia Commons (CC BY 2.0)
Neighborhood Intelligence, the parent of Bed Bath & Beyond, nearly doubled its revenue last quarter by buying The Container Store and Kirkland's. Now Neighborhood Intelligence is closing the warehouses that came with those deals, starting with the Container Store's East Coast hub in Aberdeen, Maryland.
Why it matters: Neighborhood Intelligence's operating loss grew to $62.1 million last quarter, from $12.5 million a year earlier. CEO Marcus Lemonis is counting on fewer warehouses, along with staff and store cuts, to save more than $40 million a year on top of the $50 million he has already cut.
Driving the news: The company is shutting its 600,000-square-foot distribution center in Aberdeen, Maryland, and moving the inventory to Dallas.
Lemonis announced the closure on the Nov 5 earnings call, calling Aberdeen the company's "number two distribution center."
The rent there is 22% below market, which he said makes the lease easier to exit.
Neighborhood Intelligence has not said when the building will close or how many people work there.
How it got here: Each of the two chains Neighborhood Intelligence bought this year came with its own warehouses.
Bed Bath & Beyond was an online brand run by the former Overstock until home decor chain Kirkland's joined in the spring. The Container Store followed in July.
By August, Lemonis said the company had "lots of warehouses all over the country." He set a goal of getting down to "2, maybe 3."
He put the cost of closing sites and ending old technology contracts at about $20 million.
How it works: A network of two or three warehouses only works if each building can stock every brand.
That is why Neighborhood Intelligence moved planning for Bed Bath & Beyond, The Container Store, Kirkland's, buybuy Baby and Overstock onto one system from Relex Solutions in October.
The software forecasts demand and decides how much stock goes to each of the company's more than 335 stores.
The company said the aim is one view of inventory across the chains.
Returns stay in the stores: The stores are also taking on work that used to leave the company.
Many online shoppers return their orders at a store.
Those items used to go to liquidators for "cents on the dollar" or back to the vendor. Now the stores resell them.
Lemonis expects that to add 1 to 1.25 percentage points of margin within two years.
What's next: Lemonis said more closing costs will hit in the fourth quarter.
President Amy Sullivan said the savings should show up over the next six to nine months.
The company is also leaving 39 Kirkland's stores that lose money. Most of those leases run out in January 2027.
Sources: Neighborhood Intelligence's third-quarter earnings call and release, Nov 5, 2026; second-quarter earnings call, Aug 2026; the Container Store's 2018 Aberdeen announcement.
