Victoria's Secret closing 53 stores after poor holiday sales

Mar 02, 2019, 00:39
Victoria's Secret closing 53 stores after poor holiday sales

Other retailers, including Walmart and Best Buy, have performed strongly in recent months.

Burgdoerfer said the company expects the store closures and other factors, including recent leadership changes and an upcoming website relaunch, to improve the performance of the company's lingerie brands in the coming year.

Closure activity doubled that rate in 2018, with the company shuttering 29 Victoria's Secret stores in the US and one Canadian location of its Pink brand, which targets teenagers and young women.

Competative pricing has also played a part in Victoria's Secret's decline.

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"People identify Victoria's Secret with what's it been for the last 20 years - very sexy and airbrushed models", she said.

Victoria's Secret's same-store sales also fell during the holidays, dropping 3% during the quarter.

Victoria's Secret's path to a turnaround looks challenging, too.

L Brands Inc., owner of the lingerie chain, announced Wednesday that Victoria's Secret's US brick and mortar square footage will decrease by about 3 percent.

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Even more closures are planned for this year, with L Brands saying that 53 of their North American stores are expected to shut their doors this year. "The outlook illustrates that the lingerie-sales struggle will persist until the retailer finds a way to reconnect with shoppers on price, product and image", said Bloomberg Intelligence analysts Poonam Goyal and Morgan Tarrant.

L Brands' chief market officer, Ed Razek, sparked a backlash late a year ago when he rejected the idea of using plus-size or transgender models, a position he later apologized for. Target launched a new underwear brand for women on Monday, which features bras that all cost under $22.

The company did not rule out ending the fashion show or using more inclusive marketing.

'If they were going to pivot now, I don't think it would come off as authentic.

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It is not yet known which stores will close.