Bath & Body Works is closing old stores and opening new ones.
Parent company L Brands has reported that Bath & Body Works is on a renovation mode on 175 stores and will be closing another 24 stores.
The company will concentrate on the stores that perform well and close down the non-performing ones, while renovating a few others, as its strategy for better profits.
Earlier, in February, it had announced that there would be a massive closure in its Victoria Secret stores this year. As of May 4, 35 stores have been closed. Further, 14 stores have been opened.
L Brands transcript provided for Thursday meeting says that there have been 822 new openings while closing down 675 stores. 130 stores have been closed in the last 10 years.
Bath & Body Works has been able to show growth by 3 percent while Victoria Secret has moved in the reverse direction showing a decrease by 3 percent.
L Brands considers White Barn concept from Bath & Body Works to provide good returns and will continue to invest in it. For the year 2019, 200 White Barn projects have been planned, as was done for the past three years, says the retail store.
Most of the products for Victoria’s Secret products and Bath & Body Works products are produced in the U.S. About 20 percent of total production is in China. With the tariffs, the company will try to protect itself from exposure to China.
It is expected that the tariffs will put all retail stores at risk and more such closure stories would emerge.
In 2019, 7,000 store closures have been announced. This is more than the number closed last year. CVS, Dressbarn, Gap and many other chain stores have closed in 2019. This is more than what happened in 2018, says Coresight Research.
With online shopping continuing to grow, more such closures can be expected.