\nAfter a four-year hiatus, Victoria\u2019s Secret will once again hold its fashion show this year, executives said Friday. The brand ended the event in 2019\u00a0as criticism of its marketing techniques increasingly came under fire and as the #MeToo movement gained strength.<\/p>\n<\/li>\n<\/ul>\n
Dive Insight:<\/h3>\n
Victoria\u2019s Secret has a ways to go in its turnaround, a sharp marketing reversal toward more inclusive, female-empowerment messaging and merchandising. But it has apparently come far enough to reboot its once infamous fashion show.\u00a0<\/p>\n
\u201cWe believe we’re two years into a five-year journey in the turnaround of our business, and we have a clear roadmap to be the world’s leading fashion retailer of intimate apparel,\u201d CEO Martin Waters said on an earnings call.<\/p>\n
When it comes to revenue, the company has remained the market leader in intimates, even as competition intensified in recent years, Wells Fargo analysts noted. But smaller brands will continue to chip away at its dominance because the company hasn\u2019t made the progress it needs to, according to Jane Hali & Associates analysts.<\/p>\n
\u201cAlthough [Victoria\u2019s Secret & Co.]\u00a0is working through its turnaround and notably becoming more in tune with consumer interest, we feel the execution isn\u2019t on par with the rest of the competitive landscape,\u201d Hali analysts said in a client note, adding that the company \u201cis having to play catch-up when it comes to image, product, and experience.\u00a0While in the short-term we might see improvements, we believe collectively the DTC brands will continue to take share.\u201d\u00a0<\/p>\n
Specifically, while recent collections are stronger, with better designs, fabrics and compositions,\u00a0\u201cwe are still seeing non appealing and non-competitive product in the intimates space,\u201d they said.<\/p>\n
There\u2019s more progress to be made operationally as well, with potential for more changes to both location and the store-based customer experience, according to Wells Fargo analysts led by Ike Boruchow.<\/p>\n
\u201cIt is undeniable that VS has a massive [North American] store base (800+ stores) highly exposed to mall-based real estate,\u201d\u00a0Boruchow said in emailed comments, noting an \u201copportunity in off-mall real estate.\u201d<\/span><\/p>\nIn North America last year, the company opened 16 stores, mostly off mall, and closed 13; seven stores were renovated using its Store of the Future design, bringing that concept to a total of 25 locations. This year, the company expects to open 15 to 20 new Store of the Future locations, mostly off mall, and close about the same number; it will also renovate another 50,\u00a0Waters told analysts Friday.\u00a0The company uses some of those renovations to downsize its presence in a shopping center, in some cases by combining Pink and Victoria’s Secret into one location.<\/p>\n<\/p><\/div>\n
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