Daniel Heaf, the new CEO of Bath & Body Works (BBW), is embarking on an ambitious journey to awaken what he terms a “sleeping giant.” In an interview at the company’s new Midtown Manhattan office, Heaf expressed a blend of admiration and responsibility for the iconic brand that has, in his view, struggled to realize its potential. “It’s done all the hard things,” he noted, “yet not put it together in a way that drives the growth it deserves.” The company, spun off from L Brands alongside Victoria’s Secret in 2021, recently reported a decrease in quarterly net sales, a disappointing result that led to a downward revision of their sales outlook. As Heaf takes the reins, he is keen to shift the narrative around BBW and make it more relevant to today’s consumers while addressing the challenges that come with a changing retail landscape.
Heaf, who comes from a rich background in leading brands like Nike and Burberry, finds the situation at BBW particularly intriguing. Despite fragrance being one of the strongest categories in beauty, Heaf senses that BBW is losing its connection with younger generations, overshadowed by a wave of digitally savvy indie brands. He observes that many people remember the brand fondly but have drifted away from the stores. “When I speak with influencers and celebrities, they often express nostalgia for their first visit to Bath & Body Works,” he said, highlighting how the brand’s identity is still alive in the memories of consumers. His challenge is to revive that sense of familiarity and excitement while acknowledging that foot traffic has diminished in the mall-centric retail environment.
Recognizing the need for evolution, Heaf is not starting from scratch. BBW has already made significant strides in diversifying its 2,400-store network, with nearly all stores turning a profit. However, despite these efforts, growth has stagnated. One major area of focus for Heaf is innovation. He believes that, similar to challenges other brands have faced, BBW must return to its roots and reinvent its core product offerings. “We must become faster, more agile, and not remain confined to a stores-first model,” he stated. His six-month review of the company identified missed opportunities, wherein resources were directed toward peripheral categories like laundry and men’s grooming instead of the brand’s mainstays such as fragrances and body care items.
Particularly striking is Heaf’s assertion that 90% of BBW’s revenue stems from its core categories, yet the brand has not kept pace with consumer demands for modern packaging and storytelling. Heaf critiques the past reliance on collaborations and deep discounts to drive sales, suggesting that these tactics were unsustainable and hampered long-term growth. Instead, he is advocating for a more vibrant brand identity that resonates with consumers. He emphasizes that collaborations should serve to invigorate the brand rather than serve as short-term fixes.
Under Heaf’s leadership, BBW is launching a new strategy called the Consumer First Formula. This comprehensive plan aims not only to focus on core products but also to broaden the brand’s outreach. The strategy includes exciting collaborations, targeted marketing moments, and a pivot to selling on platforms like Amazon. Additionally, there is an emphasis on enhancing BBW’s digital presence, which Heaf has described as lacking compared to competitors. He has committed to revamping the website with rich content like more product images and interactive features that speak to the modern consumer experience.
As Heaf’s turnaround plan progresses, he is acutely aware of the diverse customer base that BBW serves. The brand has solid loyalty among consumers over 35 and younger teenage customers, but he recognizes the gap in addressing those in between. He believes that bridging this gap presents a significant opportunity for BBW, enhancing brand relevance across different age groups. Heaf emphasizes that this transformation will take time but is optimistic about the brand’s evolving identity, promising that in a year, consumers will notice a refreshed and more engaging Bath & Body Works experience.
Ultimately, Heaf envisions a BBW where visitors feel connected to its heritage yet invigorated by new offerings tailored to contemporary tastes. “You’ll click through to our website and be impressed, wanting to explore our stores,” he promises. He aims to create a shopping experience that is simpler and more appealing, firmly believing that the key to revitalizing the brand lies not just in new ideas but in making the customer’s journey smoother and more enjoyable. Through thoughtful innovation and a renewed focus on core strengths, Heaf is determined to awaken the retail giant that Bath & Body Works has the potential to be.
