Image copyrightAFP Caption it looks like embodied by Victorian secret angels? The owner of Victoria Secret has named a new…
Caption it looks like embodied by Victorian secret angels?
The owner of Victoria Secret has named a new head of the lingerie chain in his last attempt to revive the company’s wealth.
John Mehas, president of the luxury fashion house Tory Burch, will take over in early 201
9 and replace Jan Singer.
His appointment comes in a difficult time for Victoria’s Secret.
The company is faced with decreasing sales, an increasing number of competitors, and proposals that the brand – far a word for mass market underwear in the United States.
On Monday, the shares of Victoria Secret’s parent company L Brands dropped 5% in after-trade after the latest results, which showed another decrease in sales in lingerie. Stock price has fallen more than 40% in the last 12 months.
Ed Razek, Marketing Manager for L Brands, recently tested intense criticism of comments he made to the Vogue magazine on transgender and plus major models.
And this weekend, the New York Times Victoria’s Secret declared a name in “steady decline”, while the Wall Street Journal said the vision of sexiness defined by the Ohio-based retailer – renowned for its busty “Angel” models ” had lost his appeal.
L Brand boss Leslie H Wexner said the new managers would look at “all” when they focused on improving performance.
“I am convinced that under John’s leadership, Victoria & # 39; s Secret Underwear, the world’s leading underwear brand, continues to be a power plant and will deliver products and experiences that reason with women around the world, he says.
Still with Victoria Secret Sales and with comparable stores slipping 2% over the last quarter, it is unlikely that the resumption of the deaths of the retailer, which began in the 1970s , ceased.
“They definitely need a change in their brand positioning forward,” said Diana Smith, Deputy Director of Retail and Clothing at the Mintel Market Research Firm.
“I think they’re a bit limbo at a moment.”
The underwear revenue is expected to increase only 1% annually over the next five years, according to the research company Ibisworld.
Under the over 4% annual interest rate that the industry had between 2013 and 2018 – and it is a major problem for L Brands, currently capturing more than 60% of revenue and having more than 1000 Victoria Secret Stores in USA and Canada.
Analysts attributed the slowdown in growth to a large extent to competition from online startups, department stores and major retailers like Gap, which takes market share.
“Victoria’s Secret is still Leading – and the strong leader – in terms of sharing,” said Mr Smith. “It’s just that other companies start offering more options and choices to women who were not there before.”
Companies like Lively, ThirdLove, or Rihanna’s Savage X Fenty have differentiated themselves by offering a wide range of sizes – including the growing number of customers with plus quality – or focusing on specific products that bore without thread. 19659007] Lower prices are also part of the appeal, which analysts are likely to hurt Victoria’s profit margins in the future.
Ibisworld expects the number of underwear for US operators to grow at an annual rate of more than 4% over the next five years – more than three times the rate in the wider women’s clothing company.
“These small niche operators will only continue to grow and just continue to fill the industry,” said Claire O’Ronnor, leading analyst at Ibisworld. “They have a real shot to compete with Victoria’s Secret.”
Victoria’s Secrets Scale meant that it has been slow to respond to some fashion, such as demand for roulette and triangle brass, categories where sales have risen more than 100% in recent three months, according to analyst firm Edited.
But Smith and others warned that it’s too early to write the brand.
“Most major companies are going through this,” said Mrs. Smith of Mintel. “I think they’ll bounce back.”
On a Friday in a Victoria’s Secret Store in Brooklyn, New York, a long row spun through clean tables stacked with perfumes, pajamas and underwear.
Customers Sahara Jackson and Cheriyah Smith, both of 17, shrugged on lip gloss praised the brand’s quality and offered a glimpse when this reporter mentioned some of the online competitors.
And Shurla Kerr, 35 in New York, was doubtful to the customers
“I think it’s sexiness, that’s why people are gravitating to Victoria’s Secret.” Comparable sales are down 1% so far this year, This is an improvement over the 11% decrease over the same period in 2017 and a less severe decrease than some analysts had predicted.
Since April, surveys show that customer satisfaction has improved and that number of women a goat 18-49 makes purchases, according to market research company YouGov.
More women also hear positive things about the company through advertising, media and mouthwriting.
Ted Marzilli, Managing Director of YouGov’s Computer Products Division, said he believed that the company’s image had hit when the MeToo movement was at its height, but that effect has faded.
“I think reports of its passing were a bit too early,” he said.