Bath & Body Works will launch on Amazon early next year.
The retailer is partnering with the e-commerce giant as part of its new “consumer first formula” strategy introduced Thursday, which aims to place the consumer at the center of its decision-making while focusing on its largest revenue opportunities.
Specifically, a partnership with Amazon aligns with its “win in the marketplace” pillar to support ease of discovery through digital experiences and be in the path of the consumer.
The company is already on the platform, but in the form of gray market sales, CEO Daniel Heaf said on a call with analysts Thursday.
“Frankly, we already know that we’re doing somewhere between $60 to $80 million of gray market sales in that channel that is brand dilutive and product dilutive,” Heaf said. Launching on the platforms is “an incredible sales opportunity, but also an opportunity to reignite the brand.”
Bath & Body Works will start with a small assortment of its evergreen products on Amazon in order to “test and learn” and build ratings and reviews, according to Heaf, who pointed to other brands who have already partnered with the e-commerce giant.
“We have left Amazon wide open for competitors to play. That is changing,” Heaf said. “We have left other wholesales partners wide open for those competitors to play. That is going to change, also. So to me, I’m looking forward to putting our product front and center, telling bold and emotive stories, and winning in the full marketplace.”
Bath & Body Works on Thursday reported third quarter earnings, with net sales down 1% year over year to $1.6 billion for the quarter. Net income was down over 27% to $77 million. The company lowered its Q4 and full-year guidance to reflect its current business trends and macro consumer pressures.