Bath & Body Works has a problem: fewer shoppers are walking into its stores. But those customers haven’t necessarily stopped buying candles, fragrances and body-care products — increasingly, they’re buying them somewhere else.
The retailer’s digital business returned to growth in the second quarter for the first time in five years, even as weak traffic continued to weigh on its physical stores. Bath & Body Works says improvements to its online shopping experience helped drive the digital rebound, providing an early bright spot in the company’s broader turnaround.
Part of the shift may be coming from Bath & Body Works itself. The company introduced free shipping for online orders late last year and has expanded its reach through Amazon, making it easier for customers to buy without visiting one of its stores. Executives acknowledged Wednesday that free shipping has prompted some customers to move purchases from stores to the company’s digital business.
That’s particularly notable for a retailer built around products people traditionally experience in person. Fragrances, candles, lotions and soaps invite shoppers to smell, sample and browse. But longtime customers already know many of the scents and products they like, making replenishing a favorite candle or body wash much easier to do from a phone or laptop.
Bath & Body Works still has plenty of work ahead. Second-quarter sales fell 2.3% to $1.5 billion, and the company expects sales to decline between 2.5% and 5% in the third quarter as cautious consumer spending and weak store traffic continue. But the return of digital growth suggests the brand’s challenge may not simply be getting customers to buy — but adapting to where they increasingly want to buy.
