Bath & Body Works has opened two test stores as U.S. and Canadian store sales fall, putting its effort to improve fragrance discovery alongside a 5.4% quarterly decline.
The first “Feel Good” concept store opened at SouthPark Mall in Charlotte on Oct. 23. In a later update, the company said its Columbus location had opened and identified Miami as the third test site, with a November target. The retailer has not announced a broader rollout schedule.
The layout sorts merchandise by scent, provides dedicated spaces for product trials and includes a digital Fragrance Finder. Displays describe ingredients and product benefits. Bath & Body Works said customer feedback informed features intended to make browsing and product information easier, and it plans to study shopper response in the test stores. The company places the concept within its Consumer First Formula, a plan for changes to its products, brand and marketplace.
For the quarter ended Aug. 1, Bath & Body Works reported $1.131 billion in U.S. and Canadian store sales, down 5.4% from a year earlier. Total net sales declined 2.3% to $1.514 billion, while direct sales rose 3% to $275 million. The company attributed the store decline to fewer transactions and lower average dollar sales. It had 1,937 company-operated stores in the United States and Canada as of Aug. 1.
Fox Business reported Nov. 9 that CEO Daniel Heaf said Charlotte’s initial sales were “above our expectations.” Heaf also told the outlet that all of the company’s stores were profitable. The company’s second-quarter filing does not provide store-level profitability figures. Interim CFO Tom Javitch said on an Aug. 26 earnings call that “virtually all stores are profitable.”
Bath & Body Works is scheduled to release third-quarter results before the market opens Nov. 19, followed by an earnings call at 8:30 a.m. ET.
