Overstock, the e-commerce company, is set to breathe new life into the beloved brand, Bed Bath & Beyond, with the launch of its website and app on Tuesday. Following the closure of Bed Bath & Beyond's physical stores after filing for bankruptcy in April, Overstock acquired the brand's intellectual property through an auction in June, and now aims to leverage the brand's strong following to boost its own sales.

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The rebranded website and app will retain the familiar products that Bed Bath & Beyond customers love while introducing an expanded "beyond" category, which includes Overstock's existing merchandise.

Overstock's CEO, Jonathan Johnson, is optimistic about the acquisition's potential to revive the company's sales, which had experienced a 20 percent drop in the previous quarter compared to the same period last year.

“We have added over 600,000 new products since the deal was first announced in early June, most of them in the bedding, bath and kitchen area. But, historically, we’ve been strong in patio furniture, area rugs, mattresses, living room and dining room furniture,” Overstock CEO told CNBC. “So the customer can expect a breadth and depth of products they haven’t seen before.”

The strategic move is expected to improve Overstock's business relationships with vendors who were previously hesitant to associate their merchandise with the company. By phasing out the Overstock brand over time, Overstock plans to fully transition to the Bed Bath & Beyond name.

Johnson attributed part of the slowdown to the softness in the home goods category and the economy as a whole, but he also acknowledged that Overstock's name was a hindrance. By rebranding under the trusted Bed Bath & Beyond name, the company aims to overcome this obstacle and appeal to a wider customer base.

“Rebranding to a name that is synonymous with home, rather than pushing, slogging forward with a name that was mistakenly confused with liquidation, something we haven’t done in two decades, will help us cut through some of the difficulty of the current economy,” said Johnson.

“We’re self aware enough to know that nobody, not even my children, would put ‘registered at Overstock.com’ on their wedding announcement, baby announcements, but they will put ‘registered at Bed Bath & Beyond’ on both those announcements. So it’s a name that people like, they’re proud of, that they want to be associated with.”

While specific guidance on the acquisition's impact on future sales is still uncertain, Overstock's launch of Bed Bath & Beyond in Canada has been promising, with increased direct traffic, conversions, and returns on ad spend. The company is hoping to replicate this success in the U.S. market, where the Bed Bath & Beyond brand enjoys strong customer loyalty and positive associations.

To measure the success of the rebranding and acquisition over the next year, Johnson will focus on significantly growing Overstock's active customer base and their order frequency. To achieve this, the company will rely on attractive deals and coupons, a strategy that has previously worked well for both Overstock and Bed Bath & Beyond.

To celebrate the launch of the revamped platform, customers downloading and shopping on the new app will receive a 25 percent off welcome coupon, while members of Overstock's loyalty program, Club O, will receive a 20 percent off coupon. Additionally, existing Bed Bath & Beyond loyalty program members will receive various benefits, such as a reinstatement of unused loyalty reward points, exclusive coupons, and free membership to the revamped Welcome Rewards program.

With the rebranding, Overstock aims to tap into Bed Bath & Beyond's devoted customer base, gaining access to valuable data and marketing opportunities. The company's focus on coupons and attractive deals is expected to play a significant role in driving growth and rejuvenating the once-struggling brand.