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Victoria’s Secret has become the latest struggling retailer forced to close its physical locations, as the company announces it will shutter 53 stores.
Currently, Victoria’s Secret has over 950 stores in the United States. But last year, the company was forced to close 30 stores as mall traffic grew weaker. Over the past two years, the company has lost some 3.8 million customers.
Despite America having its strongest economy in years, we are seeing retailer after retailer shutting down physical locations. At first glance, one might place the blame on online competition, especially Amazon American Eagle’s Aerie, and certainly, these cannot be discounted as problematic.
However, many retailers such as Walmart and Best Buy are performing well in their physical spaces.
A bigger factor might be the fact that Victoria’s Secret is facing competition in a changing landscape and lingerie is an attractive category for startups.
Victoria’s Secret is seeing a lot of competition from lingerie startups, as well as, from other large retailers who are making headway in against them.
Another area where the company may have failed is by being too focused on offering discounts through heavy promotions, which lowers prices and hurts the bottom line.
Critics say that where Victoria’s Secret is failing is by not meeting consumer demand for more custom-fitted bras. This is an area some markets have been focusing on more lately, with many ads touting bras that can fit a wider range of women.
Another area where other companies are gaining ground on Victoria’s Secret is by promoting to “everyday” women, especially in their advertising. Victoria’s Secret, on the other hand, is known for its use of models, which may be creating a disconnect with this market.
For example, Target is one large retailer that is heavily promoting lingerie to everyday women, at far more affordable pricing than what Victoria’s Secret offers.
