Business
Bath & Body Works starts selling on Amazon as more brands embrace its logistics network
An assortment of Bath & Body Works products.
Courtesy of Bath & Body Works
Bath & Body Works Champagne Toast bodywash, with no minimum shipping threshold, is now just a click away for Amazon Prime members.
The mall-favorite brand is making some of its best-selling fragrances, bodywashes, hand soaps and candles available for Amazon’s U.S. shoppers. The selection is also eligible for Prime shipping.
Amazon is the No. 1 online destination for U.S. beauty shoppers, accounting for 47% of the online beauty and personal care market in the U.S. in 2024, according to Euromonitor. Sephora is second with 9% share. Euromonitor estimates 39% of all beauty and personal care sales take place online.
“Launching our first authorized brand storefront on Amazon allows us to put ourselves directly in the path of the consumer,” Bath & Body Works CEO Daniel Heaf told CNBC. “It’s about meeting them where they already shop.”
The Amazon launch marks the latest effort by Columbus, Ohio-based Bath & Body Works to expand its access points for customers. Last year, it began selling its products in college campus stores — with a footprint of now more than 1,000 locations — in the company’s first points of sale outside its roughly 2,600 owned and franchised stores and its own website.
Heaf joined Bath & Body Works in May after his role as Nike’s chief transformation and strategy officer was eliminated by CEO Elliott Hill.
Heaf recently laid out his “plan to return [Bath & Body Works] to profitable, sustainable growth.” He calls it a “consumer-first formula” with four pillars: creating disruptive and innovative products; reigniting the brand; winning in the marketplace; and operating with speed and efficiency.
The Amazon partnership, Heaf said, “is the first of many milestones that we’ll be delivering this fiscal year against that strategy.”
Before the official storefront launch, Bath & Body Works products were sold on Amazon through third-party resellers.
Now, Heaf says, the company is attempting to reclaim the brand story on Amazon — and those marketplace sales.
Amazon: Friend or foe?
While Amazon has many first-party relationships with brands from Nike to Calvin Klein that use wholesale partnerships as part of their business models, there are few examples of retailers selling on the site that design, manufacture and sell their products entirely on their own.
For those so-called vertically integrated brands, like Bath & Body Works, Amazon is increasingly filling the role of skilled logistics partner rather than retailer.
Gap, J.Crew and Everlane are similarly vertically integrated and have small selections of branded products for sale on Amazon.
Gap began selling what it calls “core basics for the whole family” in 2022 through a wholesale relationship, where Amazon owns and sells the products, which are Prime eligible. Gap has said its goal is to reach new or lapsed customers as well as provide existing shoppers the convenience for “core essentials.”
Under Bath & Body Works’ new agreement with Amazon, the brand will retain ownership of the inventory and control pricing, but will use Amazon’s fulfillment partners network for Prime eligibility.
Everlane declined to comment on its Amazon partnership. J.Crew did not respond to request for comment.
Jewelry company Kendra Scott has an authorized storefront on Amazon after initially opposing the partnership — even though it had wholesale relationships with other retailers, including Macy’s and Nordstrom. But over time, the brand began to view Amazon as another opportunity to reach shoppers rather than a competitive threat, according to a person familiar with the company’s decision-making, who spoke about internal matters on the condition of anonymity.
On its own website, Bath & Body Works is making it easier for shoppers to place their orders. The company lowered its free shipping threshold to $50 from $100 last month.
Still, Heaf admits, “We know that we will never compete with Amazon in terms of their Prime Network. No one is going to be offering next-day shipping. That’s just not what we’re in the business of. And so I think that by going on Amazon, we are also making our own site more competitive but recognizing that our job is not to build a fulfillment network that can operate at the speed of Amazon.”
Business
OpenAI halts UK data centre project over energy costs and red tape
ChatGPT developer OpenAI has halted plans for a significant UK data centre project, citing high energy costs and regulatory challenges as barriers to investment.
The US technology giant had intended to establish its “Stargate” data centre initiative within a new artificial intelligence growth zone in the north-east of England.
The venture was slated for multiple sites, including Cobalt Park near Newcastle and Blyth.
However, OpenAI said the plans are now on hold, awaiting “the right conditions” to facilitate long-term infrastructure investment across the UK.
A spokesman for OpenAI said: “We see huge potential for the UK’s AI future. London is home to our largest international research hub, and we support the Government’s ambition to be an AI leader.
“AI compute is foundational to that goal – we continue to explore Stargate UK and will move forward when the right conditions such as regulation and the cost of energy enable long-term infrastructure investment.”
The reference to energy costs come at a time when prices are being pushed higher by the US and Israel’s war with Iran.
The International Monetary Fund (IMF) said in March that the UK was one of the nations particularly exposed to soaring wholesale costs because of its reliance on gas-fired power, as opposed to sources such as nuclear and renewable energy.
Data centres are powered by very large amounts of energy so are more likely to be exposed to volatile prices.
OpenAI added: “In the meantime, we are investing in talent and expanding our local presence, while also delivering on the commitments under our MOU (memorandum of understanding) with the Government to adopt frontier AI in UK public services.”
Its Stargate project aims to invest billions of dollars into AI infrastructure in the US, with funding from OpenAI, SoftBank, Oracle and MGX and partnering with tech giants including Nvidia and Microsoft.
Building it into the UK came as part of a landmark tech deal between Britain and the US, announced last September amid President Donald Trump’s second state visit.
The deal also included a 30 billion US dollar (£22.3 billion) pledge from Microsoft, the largest ever made by the company in the UK, to fund the expansion of Britain’s AI infrastructure.
Conservative MP and shadow science minister Ben Spencer said: “When global firms cite high energy costs and regulatory uncertainty as reasons to walk away, it tells you everything about the direction of travel.
“For too long, Labour have prioritised courting big tech headlines while neglecting our domestic start-ups, but also the fundamentals that actually attract investment at home.”
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