Victoria's Secret is at the top of the fashion world right now, and yet the company is thinking of upending its operations. The fashion giant wants to keep its leading position by slashing 200 jobs and restructuring its operations, said its parent company.
L. Brands, the owner of Victoria's Secret has enjoyed being in a bright spot in the highly competitive retail world during the last decade. The store sales of this fashion company have been consistently on the plus side, owing to its diverse clothing and accessory items that include underwear, active wear, swim wear and cosmetics.
Moving forward, the parent company of Victoria's Secret wants to divide it into three business units. These three sections will be lingerie, Pink (the brand's teen line), and beauty. This strategy is designed to streamline operations and concentrate on the company's strongest products.
This news came out a couple of weeks after Sharen Turney, the brand's long-time CEO stepped down. The different heads of the brands separate units will report directly to Leslie Wexner, Chairman and CEO of L. Brands.
Though the company has enjoyed continuous patronage from customers, it deemed that its product lines have already grown bloated. This current restructuring is designed partly to focus on the most promising lines, and throw out those which are not.
The change comes in the midst of intensified competition in the fashion world. Victoria's Secret has maintained its leadership especially in the lingerie business having amassed $1.1 billion in income last year. However, a lot of eager beavers are waiting on the wings which are slowly eating some of its market share.
"It's a really forward-thinking perspective that we don't often see with retailers these days," said Sonia Lapinsky, a director at AlixPartners, a retail practice consulting firm.
"Victoria's Secret is doing well, and this is the perfect time to be laser focused and make sure they continue to go win the strategic places they're best at," she added.
