Victoria’s Secret plans 20 store closures

Victoria’s Secret has announced plans to close 20 stores, the retailer has already closed six North American stores and has announced it intends to close 14 more stores in undisclosed locations.

When asked if closures would affect UK stores by Retail Sector, the company failed to provide a response.

The company has seen its shares plummet by 52% since the start of the year along with a small comparable sales drop of 1% for the second quarter for both its Victoria’s Secret and Victoria’s Secret Pink stores.

Pink used to be one of the company’s best performing lines however it has now seen trouble with same-store sales slipping into mid-single digits according to its CEO Denise Landman.

Landman, who is credited with making the Pink brand worth $3bn (£2.3bn) has announced she is retiring at the end of the year to be replaced by president for merchandising and product development at Bath & Body Works, Amy Hauk.

Randy Konik, an analyst at financial advisors Jefferies said in a note to investors: “While management is citing fashion misses, we think there are structural, brand-related issues at hand here, especially with American Eagle’s Aerie posting recent same-store sales in excess of 30%.

“We question whether an exec without apparel expertise is the right person to lead Pink at a time when merchandise and brand issues need to be corrected.”

In a statement Landman said: “I feel incredibly fortunate to have been part of the PINK brand since its inception and L Brands for nearly 20 years. It’s been a privilege to lead and be surrounded by such incredible talent, thinking and creativity. It inspires me every day. I have great respect for Amy and know that I will be leaving the business in good hands.”