Bath & Body Works (BBWI) announced on April 20, 2026, that it has completed the closure of 92 stores globally since the start of its 2025 fiscal year in February. This total includes 62 locations within the United States, primarily situated in traditional shopping malls. The closures represent a central component of the company’s ongoing real estate optimization strategy, which prioritizes high-traffic, off-mall retail centers over declining mall footprints. This shift is intended to align the physical store network with evolving consumer shopping patterns that favor convenience and accessibility outside of enclosed mall environments.
The company’s real estate restructuring coincides with the aggressive rollout of its Fuel for Growth initiative. This multi-year program aims to generate $250 million in total cost savings across the organization. According to official statements released today, the savings are being realized through a combination of supply chain enhancements, procurement efficiencies, and a streamlined corporate structure. As of April 2026, the company reported that it has successfully captured a significant portion of these efficiencies and remains on track to meet its mid-term financial targets associated with the program.
Chief Executive Officer Gina Boswell detailed the progress of the initiative, noting that the shift toward off-mall locations has resulted in improved store-level margins and increased customer accessibility. Boswell stated that the company is focusing its capital expenditures on remodeling existing high-performing stores and opening new North Star format locations in suburban power centers. These new formats typically feature expanded product displays, dedicated areas for home fragrance and body care, and integrated digital pickup points for online orders. The CEO emphasized that the physical store remains a cornerstone of the brand's omni-channel strategy.
Financial leadership highlighted that the $250 million savings target is being reinvested into the company’s digital infrastructure and product innovation. The Fuel for Growth program has already identified significant reductions in logistics costs by renegotiating freight contracts and optimizing inventory management systems. The company confirmed that it expects the full annualized benefit of these savings to be reflected in the financial results by the end of the 2026 fiscal year. Management also noted that the company is maintaining a disciplined approach to capital allocation, focusing on projects with the highest potential for long-term value creation.
Despite the 92 closures, Bath & Body Works maintains a significant global presence with over 1,800 locations. The company’s international segment continues to expand through franchise partnerships in key markets, even as it rationalizes its domestic brick-and-mortar footprint. The April 20 update confirms that the company will continue to evaluate its store portfolio on a rolling basis, with additional mall-based closures expected as leases expire throughout the remainder of 2026 and into 2027.