American shoppers haven’t deserted malls.
“After a relatively subdued summer performance, malls rebounded sharply in October 2025, with foot traffic to indoor malls, open-air shopping centers, and outlet malls rising significantly both year over year (YoY) and month over month (MoM),” in response to knowledge from Placer.ai.
In actual fact, each kind of mall noticed a site visitors rebound in October.
“All mall formats saw clear YoY visit gains in October 2025, potentially signaling renewed consumer enthusiasm heading into the holiday season. And although indoor malls led the growth — continuing their strong performance throughout 2025 — open-air shopping centers and outlet malls also returned to positive territory after four consecutive months of declines, underscoring the breadth and strength of the October recovery,” the info supplier shared.
The information means that client are getting an early begin on the vacation buying season, or that they’re at the very least starting to search for offers.
“The MoM data underscores the scale of this recovery. In October 2025, visits rose sharply compared to September 2025 — up 6.1% for Indoor Malls, 5.5% for Open-Air Shopping Centers, and 7.9% for Outlet Malls. In comparison, October 2024 saw only slight MoM increases of 0.5%, 2.1%, and 1.4%, respectively, compared to September 2024,” Placer.ai reported.
However simply because shoppers go to malls doesn’t imply that they’re opening up their wallets. Foot site visitors doesn’t at all times equate with spending.
Tub & Physique Works, a mall staple, has been transferring its shops outdoors of mall areas, closing dozens of shops as a part of that course of.
Tub & Physique Works reworks its retailer plan
Tub & Physique Works’ former CFO, Wendy C. Arlin, defined the chain’s retailer plan on the Goldman Sachs retail convention.
“99% of our stores are cash flow positive. So it’s great to look across the fleet and see that
we don’t have any financial challenges in the real estate fleet. So I think that’s the headline. We have strategically, as you pointed out, been focused on migrating our fleet to be more off-mall than in the mall,” she mentioned.
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That plan has been lively since late 2022.
“So a lot of what — essentially, the stores that we’re opening each year are in off-mall
locations and the stores that we’re closing each year are in mall locations. So right now, we’re at about 50-50. We think at the end state, it’s probably about 2/3 mall, 1/3 on mall,” she added.
Tub & Physique Works retailer closures and openings:
- In its Q3 2025 earnings report, Tub & Physique Works mentioned it closed 34 company-operated shops however opened 73 new ones since February 1, 2025.
- So whereas it is closing some areas, it’s also internet increasing.
Supply: GlobeNewswire - In Q2 2025, the corporate reported 24 U.S. retailer closures.
Supply: Tub & Physique Works Investor relations
Tub & Physique Works exits some malls
- Among the closures are mall-based shops. For instance, the chain exited the Meriden Mall in Connecticut.
Supply: Connecticut Publish - In the meantime, it is also opening new, extra trendy stand-alone shops (not in malls).
- Instance: A brand new “Gen Z‑focused” Tub & Physique Works retailer opened in San Antonio with a contemporary design and interactive options.
Supply: MySA
Tub & Physique Works has been transferring to off-mall areas.
Shutterstock
Tub & Physique Works has a turnaround plan
Tub & Physique Works CEO Daniel Heaf launched the chain’s turnaround plan when it reported third-quarter earnings.
“Today, we are excited to announce a comprehensive transformation plan to revitalize Bath & Body Works across brand, product, and marketplace. This plan, the Consumer First Formula, focuses our investments in our four largest revenue-driving opportunities — creating disruptive and innovative products, reigniting our brand, winning in the marketplace, and operating with speed and efficiency. These initiatives aim to attract new, younger consumers to the brand and unlock our next era of growth,” he mentioned in a press launch.
Tub & Physique Works Q3 highlights
- Third-quarter internet gross sales of $1.6 billion, down 1%.
- Earnings per diluted share of $0.37.
- The corporate reported internet gross sales of $1,594 million for the quarter ended November 1, 2025, a lower of 1% in comparison with internet gross sales of $1,610 million for the quarter ended November 2, 2024.
- The corporate expects fourth-quarter 2025 internet gross sales to be down excessive single digits, in comparison with $2,788 million within the fourth quarter of 2024.
“Our third quarter results were below expectations, and we are lowering our outlook for the remainder of the year reflecting current business trends and continuation of recent macro consumer pressures. While this is disappointing, we are acting swiftly and decisively to position the business for sustainable, long-term growth,” Heaf mentioned.
A have a look at Tub & Physique Works’ turnaround plan
Heaf shared the four-point plan.
- Create Disruptive and Modern Product: We are going to deal with reestablishing product management by creating progressive choices centered on our core classes of physique care, dwelling perfume, soaps, and sanitizers. Guided by deep client insights the corporate will ship ingredient-led formulation, sensorial excellence, and elevated storytelling whereas simplifying our assortment to deal with trend-right innovation.
- Reignite the Model: We are going to work to reclaim our place as a cultural chief via bolder, extra focused model moments and deeper creator advocacy. We are going to construct enduring perfume franchises round iconic scents, paired with elevated visible storytelling and social momentum throughout all client touchpoints.
- Win within the Market: We are going to purchase new shoppers by assembly them the place they’re. Discovery shall be easy. We are going to proceed to boost our digital and in-store experiences, whereas increasing into new wholesale channels and marketplaces.
- Function with Velocity and Effectivity: We are going to remodel Tub & Physique Works to be a sooner and extra environment friendly group. Work has already begun, and we’ll proceed to interrupt down silos, pace up decision-making, and strengthen the agile working mannequin that makes this firm nice. Future progress shall be funded via continued operational self-discipline. We’ve plans to ship $250 million in price financial savings over two years, with over half recognized for 2026. These financial savings shall be used to spend money on revenue-generating initiatives throughout product and model.
Analysts react to Tub & Physique Works strikes
“It truly is a head-scratcher,” mentioned Sucharita Kodali, a Forrester analyst whose preteen daughters are followers of the model, the Spokesman-Evaluation reported. “There are so many things going against this company: It’s a mall merchant – that, alone, should have spelled doom. And it’s selling commodities that are broadly available elsewhere, often for cheaper. But somehow Bath & Body Works has figured out how to appeal to the masses.”
Though the chain is leaving some malls, some analysts see Tub & Physique Works as an indication that malls can work.
“To me, it’s Exhibit A that the mall is not dead,” John Morris, a senior analyst at D.A. Davidson advised the identical paper. “Bath & Body Works has found a way to get everyone into its stores, teens up to baby boomers.”
GlobalData Managing Director Neil Saunders, nevertheless, sees why the chain is leaving some malls.
“When you go into a second- or third-tier mall, a lot of stores look very gloomy or down on their luck. Bath & Body Works, though, stands out: It’s a shiny beacon that draws customers in,” he advised ICSC.
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