Bath & Body Works just wrapped up its latest Member Appreciation Days sale for rewards program participants. Deal-seeking shoppers now know to wait until Candle Day in December, or the next Semi-Annual Sale after the holidays, before making any other purchases.
And the retailer says that’s a problem. So shoppers accustomed to not paying full price, may find fewer promotions like these in the future.
“Our marketing has to be less about price and promotion,” CEO Daniel Heaf said back in May, days into his tenure as the body care and home fragrance store’s new boss. And now, he’s following through on that plan.
“We have not yet delivered the consistent, durable and profitable growth we expect of ourselves,” he told investors last week, after a disappointing earnings report. “We are confident in the steps we must take,” which he says includes plans to “reduce our reliance on promotions.”
Instead, he said, stores need to emphasize products over prices. “We tend to lead with discount and promotion instead of highlighting product benefits,” he explained. So the retailer’s messaging, signage, advertising and product packaging going forward will “more consistently educate the consumer and build awareness of the numerous benefits of our products.”
It’s a similar strategy that many grocery and household product brands have tried, emphasizing the superiority of their products and not necessarily their affordability – and betting that shoppers will be so impressed that they’ll be willing to pay full price.
Heaf also hopes to sell more, by offering less. “Many consumers tell us that when they walk into our stores, the assortment feels overwhelming,” he said. “So we’re addressing that. We’re editing our assortment,” by offering “a smaller selection of products at lower discounts.”
This isn’t the first time Bath & Body Works has tried to ease up on promotions. Back in 2021, the former CEO boasted of “more full-price selling, less clearance, fewer days of real power traffic-driving promotions, higher prices when we do run promotions.”
But shoppers apparently weren’t having it. A year later, the company explained how it “reacted to the changing business trends and increased our promotional activity.” A year after that, the former Chief Financial Officer let slip that “we added select promotions to drive traffic,” but balanced it out “by increasing prices in other areas.”
In the very active Bath & Body Works subreddit, loyal customers are not impressed by this latest move. “What a thing to do when everyone is struggling,” one commenter wrote. “Do they really think people are going to regularly purchase $8 hand soaps and $16 body wash in this economy?!?” another wondered. “Take away the discounts and you’ll lose half the customer base,” another commenter predicted.
Some are already upset about changes in the rewards program, as there are now more limitations on what rewards members can earn. They’ve “raised the prices and changed the rewards program,” one commenter wrote. Add to that fewer promotions, and it’s “just bad business decisions all together.”
Many commenters say they simply won’t shop at Bath & Body Works without a coupon or a promotion. “I know the store/scents and can wait for sales and coupons,” one wrote. “Having fewer promos will drive me away completely.” Another said “without their deals I have no reason to shop there.” Still another said “as much as I like their products, I do not purchase a single thing from BBW unless it is DEEPLY discounted. If I have to pay anywhere near full retail price, I just won’t buy it.”
And that may be part of the problem for Bath & Body Works – shoppers who’ve been trained to hold out for deals. Now the retailer may find itself caught between a rock and a hard place, needing to sell more at full price to return to profitability, while running the risk of losing deal-seeking shoppers altogether by doing so.
“Our customers remain cautious and value-seeking,” Heaf acknowledged, “spending selectively” only on the discretionary purchases they think are really worth it. “We are well positioned to serve consumers with affordable, high-quality products that bring joy to their life, and I believe there is even more opportunity ahead,” he predicted.
Investors will be watching closely to see how the retailer’s latest strategy plays out. And so will its customers.
Image source: Bath & Body Works
