Say it ain’t so.
Back in August, Victoria’s Secret announced it would be closing 20 stores by the end of the year. Now, with lackluster holiday season sales and some external controversies, the lingerie retailer says it’s closing even more stores this year.
Yeah, they’re in a bit of a free-fall. Makes sense why they were on our 2019 store closures watch list.
Here are the facts:
Dozens of stores will close by the end of 2019.
L. Brands, the parent company of VS, says it’ll close up to 53 underperforming stores this year due to revenue declines.
This comes after the store first announced 20 closures by the end of 2018 back in August.
Keep an eye out for liquidation sales of up to 90% off.
There aren’t any specific details about Victoria’s Secret liquidation sales — or even the specific stores on the chopping block — but closures = liquidation sales.
Generally speaking, most of these sales last 8-12 weeks, depending on inventory. While discounts increase over time, like up to 90% off, you won’t want to wait that long because the best stuff will be gone.
Everything’s in decline — including stores’ square footage.
Victoria’s Secret reported a 7% decline in same-store sales for the fourth quarter, as well as for 2018 as a whole. Meanwhile, competitors like Aerie are seeing sales growth.
The company also said it would reduce its North American square footage by about 3%.
Even the televised Victoria’s Secret fashion show has seen viewership numbers plummet. 3.3 million people tuned in to watch the show in December — down from 5 million viewers in 2017 and 6.7 million in 2016.
Poor sales have left lots of inventory — and deep discounts.
Victoria’s Secret has had more inventory than it knows what to do with, and to clear shelves, they’ve discounted their goods.
For example, PINK offered a promo of 10 panties for $35, and Body by Victoria bras were marked down more than half off at $25 each.
I already have strategies for saving money at Victoria’s Secret, but this definitely helps.
While I LOVE discounts (and love saving money at Victoria’s Secret), retail watchers say it’s a sign of how desperate things are at VS.
RELATED: These 16 Shopping Strategies at Victoria’s Secret Will Save You Hundreds
Does this affect Bath & Body Works?
Probably not — but, maybe.
L. Brands is the parent company of Victoria’s Secret and Bath & Body Works. And right now, with consistent growth overall, Bath & Body Works is the company’s cash cow.
But if things get hairy with the company’s overall financial picture, who knows?
L. Brands has a history of swapping out brands that aren’t working for them.
L. Brands used to be called Limited Brands — as in that clothing store, The Limited.
The company has bought, sold and closed down a number of brands, including The Limited, Structure, Express and Abercrombie & Fitch.
Could VS be the next to go?