According to CNN Money.com, Victoria needs a new secret. Victoria’s Secret is like a supermodel model showing her age…she’s past her prime and competitors are taking notice and advantage.
facing an onslaught of new competition at a time when its strategy of
store expansion and advertising looks tired. Even the company’s marketing juggernaut, its annual fashion show (which took place last Thursday night will air December 4 on CBS), is losing steam. After almost two decades of category control it looks like the company is losing it’s footing.
Kohl’s, Target,J.C. Penney, Bloomingdale’s, Nordstrom, American Eagle Outfitters, and Lane Bryant are just some of
the retailers that have added new lingerie lines or updated existing
offerings by renovating dressing rooms and adding special services like
bra fitters, moves that are stealing Victoria’s Secret’s thunder.
The company’s troubles come
as overall U.S. sales of intimate apparel are starting to slow. For the nine
months ended September, sales of intimate apparel totaled $8 billion,
up just 1.6% from the year earlier period.
To defend its turf, Victoria’s Secret
is rolling out several new initiatives, including the launch of new
products that go beyond lingerie and an aggressive expansion of its
Analysts are saying it’s a risky plan coming at a time when sales at Victoria’s
Secret stores open at least a year are slowing. "I’m concerned that Victoria’s
Secret is increasing capital expenditures at a time when traffic at its
stores is declining," said Morgan Stanley analyst Michelle Clark.
Read CNNMoney.com’s "Victoria’s Secret Could USe a Lift"See the Top Ten Summer 2016 Trends for Women Over 40