Dive Brief:
- Bath & Body Works hit record-high customer retention rates and improved its ability to attract first-time shoppers in its latest quarter, CEO Gina Boswell said on a Q3 2024 earnings call Monday. Net sales were up 3% year-over-year to $1.6 billion.
- The My Bath & Body Works Rewards loyalty program reached 38 million members during the quarter, up 4% year-over-year, according to the retailer’s earnings presentation. Loyalty members accounted for over 80% of year-to-date sales.
- Boswell believes the company is well-positioned for a successful holiday season. “Our fulfillment centers and stores are fully staffed and ready to deliver an exceptional retail experience, while our omnichannel approach ensures customers can shop seamlessly wherever and whenever they choose,” she said during the call.
Dive Insight:
Bath & Body Works leaders are focusing on its 5E strategy, a five-pronged playbook that includes two customer experience focused pillars: engaging with customers in new ways and enabling a more seamless omnichannel experience.
The retailer’s customer engagement push includes an emphasis on the in-store experience, according to Boswell, who spent time visiting stores in recent months.
“Witnessing our beautifully arranged floor sets along with our store associates' unique ability to meet our customers' needs is always a great reminder of the strength of our retail experience and the team that enables it,” Boswell said.
Bath & Body Work’s rewards program is playing an important role in engagement as well. Loyalty customers shop with the brand more frequently, spend more on average, and are more likely to make purchases across multiple channels.
The retailer’s omnichannel strategy includes an emphasis on the buy online, pick up in-store option, according to CFO Eva Boratto.
Buy online, pick up in-store usage was up about 40% year over year in the third quarter, accounting for 25% of digital sales year to date. About one-third of customers who use the service make an additional purchase in the store.
Bath & Body Works is also exploring cross-channel experiences through social media. The retailer launched its Everyday Luxuries product line on TikTok Shop with the goal of reaching Gen Z customers in search of holiday gift inspiration, according to Boswell.
