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.”