Image Courtesy of Bath & Body Works
March 13, 2025
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.
Discussion Questions
Will Bath & Body Works’ strategy of redesigning stores, relocating to off-mall locations, and catering to Gen Z preferences be enough to reverse its recent sales slump? Which facets of this plan show strength (or weakness), and why?
Are sagging sales for Bath & Body Works largely attributable to macroeconomic issues facing the broader retail business, or are there other influences at play?
With conflicting reports indicating an uptick in activity and interest in the American shopping mall (at least for performing markets), does it make sense to pursue an off-mall business model? Why or why not?
Poll
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Georganne Bender
Principal, KIZER & BENDER Speaking
Sarah Pelton
Partner, Cambridge Retail Advisors
Neil Saunders
Managing Director, GlobalData
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The amount of effort Bath & Body Works puts into its stores, in terms of both the look and feel and the customer service, is incredible. I don’t think I have ever been into a bad looking shop. Even in the dying days of local Arizona malls like Paradise Valley and Fiesta Mall, the Bath & Body Works outlets were pristine! That said, it is great to see an updated format which allows them to showcase products better. The assortment has expanded over the years and now includes a lot more categories, so it’s good that they’re taking a more zonal approach. I also think the updated ambiance is more upscale, which is aligned with the view that BBW is selling little (affordable) luxuries.
It’s about time Bath & Body Works updated its store design, changing fixtures, and giving shoppers more breathing room on the sales floor. Almost every store I have visited is out of ADA compliance. Shopping with a wheelchair, stroller or even carrying a basket when the store is busy is a nightmare.
Bath & Body Works is smart to target Gen Z as this customer seems to be the majority of the demographic whenever I visit our local Bath & Body Works. I like that the retailer is moving forward with a new design. Sometimes you just have to shake up the sales floor!
The changes are incremental ones, consistent with a retailer that’s doing “OK” – generously defined – but not great; so I think it will stabilize their performance, but not much more. (The “mall” vs. “off-mall” issue I see as one of semantics, rather than some meaningful shift.) Long term they have structural issues: competitors have upped their game(s) and the number of people willing to make a special trip to sniff soap isn’t going to be what it once was.
In addition to macroeconomic factors, internal factors at Bath & Body Works may also affect sales, including shifting consumer preferences and ineffective marketing strategies.
Introducing innovative products that resonate with the target audience might be a challenge for the brand. While I like the new design, it won’t be enough to make a big impact on Gen Z.
Although Gen Z’s preferences are crucial to the redesign and relocation strategy’s success, it must be effectively understood and addressed. While the new store designs may attract attention, the brand must ensure that its product offerings and marketing strategies are equally compelling and aligned with the values and tastes of this demographic.
In addition to increasing accessibility and convenience, off-mall locations may appeal to Gen Z shoppers, who may prefer easily accessible stores. Bath & Body Works may be able to offer more competitive pricing at these locations or invest in other areas such as product innovation due to their lower overhead costs.
In the end, success will depend on how well the brand leverages these locations to create a shopping experience that resonates with their said target market.
To better connect with Gen Z, Bath & Body Works should focus on sustainability by offering a clean beauty line, refill stations, and eco-friendly packaging. Getting Leaping Bunny certified and being more transparent about ingredients would also build trust. They could make shopping more fun and interactive with AI-powered fragrance finders, AR/VR experiences, and TikTok challenges. Expanding Gen Z-friendly product lines with influencer collabs, subscription boxes, and limited-edition scents would help keep younger shoppers engaged. In-store experiences could be even more personalized with scent blending bars and QR codes for ingredient details. By leaning into sustainability, making their cruelty-free status official, and embracing digital innovation, Bath & Body Works has a real opportunity to strengthen its connection with Gen Z and turn them into loyal fans.
Taking this fresh approach to off-mail locations, like airports, is a smart move, where consumers may looking for pleasant sensory experience, gifts or something for themselves when waiting for flights.
Just make sure there is room to drag carry-on bags thru aisles!
Store refresh looks good and stabilize the business , the key will be merchandising and employee service training. Allowing the shoppers test everything means the initial impression in terms of neatness of display and providing assistance as needed is going to be key, as well as making sure the products makes the great first impression. In the age of social media, visual display and first impression is what it takes to get GenZ attention
The stores are great. Their offerings are fantastic. GET OUT OF THOSE DEAD MALLS! Going off mall is the best thing they could do!
A deserted mall in Sarasota had only 3 stores open, including Bath & Body Works. Stores in underperforming malls need to go to free up capital to reach Gen Zs and Alphas in booming malls.
The new Gingham+ concept offers the right balance of multisensory joy and digital engagement to resonate with these younger customers.
Bath & Body Works is making strategic moves, but store design alone won’t drive lasting success. The real challenge is building deeper customer loyalty beyond just attracting foot traffic.
Gen Z is shaping in-store shopping trends, seeking more than a well-designed space. They want unique experiences, exclusive products, and a seamless connection between digital and physical shopping. A refreshed layout may draw them in, but brand identity and engagement will keep them coming back.
Sustained growth comes from creating a retail ecosystem that moves beyond impulse buys, one that fosters habit, loyalty, and a deeper emotional connection with customers.