Swimwear and fashion ranges are ditched but cosmetics and fragrance survive
Victoria’s Secret has announced that it is scaling back the scope of its business, with its range of cosmetics and fragrances surviving the cuts.
The high-street chain has announced that it will no longer produce swimwear, clothing, shoes or accessories. Victoria’s Secret catalogues have also been scrapped, saving an estimated $150m in costs each year. Instead, the company is set to focus on consumer engagement and loyalty programmes.
The change comes after several years of disappointing profits for brand owner L Brands, which also manages Bath & Body Words in the US.
Going forward, the Victoria’s Secret business will have three arms: Victoria’s Secret Beauty, Victoria’s Secret Lingerie and the clothing brand Pink. L Brands said that this would allow it to focus on “core merchandise categories” where it believed there was greater opportunity for growth.
Leslie H. Wexner, CEO and Chairman at L Brands, explained: “We are making these changes to accelerate our growth and to strengthen the business for the long term by narrowing our focus and simplifying our operating model. I am certain that these changes are necessary for our industry-leading brands to reach their significant potential.”