Victoria’s Secret drops Broadcasted Fashion Shows
In this article (5)
A root-and-branch review of the Victoria’s Secret business has spelled the end of its famed televised catwalk shows – and even its giant flagship stores may be under threat.
The world’s most famous lingerie retailer is trying to arrest falling sales and counter competition from the likes of American Eagle Outfitters’ Aerie and Rihanna’s lingerie company Savage X Fenty.
Recognizing it needs to reconnect with its core customer base, L Brands founder and chairman Leslie Wexner together with recently hired CEO John Mehas, are “re-birthing the brand” through a strategic review.
“Fashion is a business of change. We must evolve and change to grow,” Wexner said in an internal memo to staff passed on to CBS News. “For the past few months, we’ve said that we are taking a fresh look at every aspect of our business – from merchandising, marketing and brand positioning, to our real estate portfolio, digital business and cost structure … literally everything. We have made enormous progress in a very short time, and are looking forward to a successful fall and holiday with an elevated, fashion-forward assortment.”
An early decision is that the Victoria’s Secret Fashion Show will no longer screen on national television in the US.
“Going forward we don’t believe network television is the right fit,” said Wexner in the memo.
“Going forward we don’t believe network television is the right fit,”
“In 2019 and beyond, we’re focusing on developing exciting and dynamic content and a new kind of event — delivered to our customers on platforms that she’s glued to … and in ways that will push the boundaries of fashion in the global digital age.”
The annual show was launched in 1995, debuting on network television in 2001. However last year’s audience on ABC was 3.27 million, the smallest to date and less than half the viewership of two years earlier.
The Victoria’s Secret business has taken some hits in the court of public opinion during recent years. The format of the show, featuring models in scanty costume lingerie has been labeled out of touch in an era where #MeToo movement is reshaping attitudes. Last year, the company was embroiled in controversy after former chief marketing officer Ed Razek said he would not use transgender or plus-sized models in its campaigns.
Institutional shareholders are demanding higher returns, many lobbying for a spin-off of the highly profitable Bath & Body Works subsidiary.
Early responses to Victoria’s Secret’s review appear positive. Analyst Lee Peterson, executive VP at Dublin-based retail consultancy WD Partners, said the lingerie giant appeared to be taking the right steps.
“Everything [Wexner] said – albeit a little tardy – is the right thing to do,” he said. “It seems to me they had an epiphany and realized it’s a new age. You can’t do anything in retail for 20 years and not change.
“Don’t forget Victoria’s Secret is still more than 60 percent of the market. It’s a big ship to turn around,” said Peterson.
Questions & Answers
Q.Which competitors are challenging Victoria’s Secret in the lingerie market?
Which competitors are challenging Victoria’s Secret in the lingerie market?
Victoria’s Secret is facing competition from American Eagle Outfitters’ Aerie and Rihanna’s lingerie company Savage X Fenty. These rivals are contributing to falling sales for the established retailer.
Q.What is the new strategy for Victoria’s Secret after dropping the televised fashion shows?
What is the new strategy for Victoria’s Secret after dropping the televised fashion shows?
The company plans to develop exciting digital content and new types of events delivered on platforms customers use. This aims to push fashion boundaries in the global digital age.
Q.Why did Victoria’s Secret decide to stop broadcasting its fashion show on national television?
Why did Victoria’s Secret decide to stop broadcasting its fashion show on national television?
The decision follows falling viewership, with the last show having its smallest audience to date. The format was also seen as out of touch with current attitudes, facing public criticism.
Q.What other significant changes might occur following the strategic review?
What other significant changes might occur following the strategic review?
Beyond the fashion shows, the review suggests giant flagship stores may be under threat. The company is examining merchandising, marketing, its real estate portfolio, and cost structure.
Reader pulse
Victoria's Secret's strategic shift:
18,057 votes so far