Bath & Body Works Launches New Gingham+ Store Design, Highlights Off-Mall Refocus and Interest From Gen Z

Bath & Body Works is working to revitalize interest in the increasingly off-mall brand following a mixed Q4 2024 earnings report, which showed declining net sales and a drop in earnings per share (EPS).

According to a company press release issued on March 12, Bath & Body Works is expanding upon its tested Gingham+ store design, deploying the concept to the majority of new U.S. stores to open over the course of 2025. The Gingham+ layout relies upon an elevated design aesthetic, cutting-edge tech, an open floor plan, and redesigned fixtures.

Three key areas of improvement were discussed in the press release:

• Larger aisles and dedicated spaces for key product lineups
• The inclusion of scent bars where customers can try out candles, wallflowers, and fragrance mists
• Video displays outlining the features and benefits of selected products

Bath & Body Works' Group Vice President of Store Design Eduardo Tonietto was the key player behind the Gingham+ update, which has already been incorporated into over 15 new locations spanning South Korea, Los Angeles, and Texas, among others.

"The customer is at the heart of all our decision making as a brand and drives everything we do as a business. We’re constantly leveraging data and insights to create and refine a one-of-a-kind retail experience that truly sets us apart," Tonietto said.

Bath & Body Works Targets Gen Z Wallets as Younger Americans Exhibit Buying Power

With younger Americans, particularly members of Gen Z, showing a preference for in-store shopping and experiential retail, it appears that Bath & Body Works is very keen to capitalize on their stated preferences.

“We’ve heard from this demographic that many of their purchase decisions are rooted in their ability to try a product first, and while we’ve previously offered this, our new design is more intentional with specific destinations in store to test and learn,” Tonietto said.

“Our team also knows that Gen Z is looking for a more relaxing and toned down in-store experience, so we’ve brought in a softer color palette for our fixtures and finishings and incorporated a more neutral palette," he added.

Retail Dive cited the company's most recent earnings call, on which CEO Gina Boswell underlined the foundational importance of catering to the emerging Gen Z consumer segment.

“We think about younger customers as both an area of recent success and also a continued opportunity,” Boswell said, pointing to the Gen Z demographic's positive response to both the company's lip products as well as its "Everyday Luxuries" label. Bath & Body Works is increasingly being perceived as “a more youthful brand," Boswell continued.

Bath & Body Works Increasingly Pivoting Away From Mall Retail

Finally, as Retail Dive noted, the home fragrance and beauty retailer has continued its exodus away from its longstanding position as a mall retailer into off-mall territory.

Last year, Bath & Body Works shuttered 61 stores (primarily located in malls) in North America, while opening 106 locations — mostly located in off-mall spots. And nowadays, the company lays claim to being a primarily off-mall retailer, operating about 60% of its locations under those conditions.

Bath & Body Works has signaled a desire to reach 75% off-mall operations in North America in the longer term.