As per media reports, Victoria’s Secret, the renowned lingerie retailer, has been struggling for a while in China. This has been now instrumental in putting the retailer’s business in the country under review.
Though no comments have been made by the retailer or its parent L Brands about the performance in China, news has been circulating since last few months that Victoria’s Secret may phase out some of its large-format flagship stores.
Notably, the not-so-profit making flagships like the one in Hong Kong’s Causeway Bay continue to exist to market the brand name – driving broader regional sales.
L Brands had only recently reported a 37 per cent slump in its first quarter sales to reach US $ 1.654 billion from US $ 2.62 billion for the same period last year.
Also Read: L Brands posts a decline of 37% in net sales
The revenue from Victoria’s Secret, in particular, fell to 45.6 per cent in the same period partly due to store closures and now there are talks of the retailer permanently shutting down 250 more stores in the US and Canada.
Stuart Burgdoerfer, Interim Victoria’s Secret CEO, reportedly averred “We would expect to have a meaningful number of additional store closures beyond the 250 that we are pursuing this year, meaning there will be more in 2021 and probably a bit more in 2022.”