Major changes are underway at Victoria’s Secret.
About 200 jobs will be cut from the lingerie brand’s Columbus, Ohio, and New York offices as it restructures and streamlines operations.
Parent company L Brands announced the news Thursday, following a better-than-expected performance in the five weeks ended Apr. 2 during which net sales increased 5 percent to $1.03 billion.
According to a press release, Victoria’s Secret will be reorganized into three business units where the company believes the greatest growth potential exists: Victoria’s Secret Lingerie, Pink and Victoria’s Secret Beauty. As a result, certain merchandise categories will be eliminated.
Additionally, L Brands plans to shift away from the retailer’s traditional catalogs and in-store offers and focus more on loyalty programs and brand-building engagement. The direct business will become a primarily digital channel within the Victoria’s Secret and Pink businesses in order to align with how customers engage the brands.
“Coming off a record year, now is the best time to make improvements … going from best to even better,” Leslie Wexner, founder, chairman and chief executive officer of L Brands, stated. “We are making these changes to accelerate our growth and to strengthen the business for the long term by narrowing our focus and simplifying our operating model.
The move followed the sudden resignation of Victoria’s Secret CEO Sharen Turney, who stepped down in February after nearly 16 years in the role. Wexner is now directly in charge of the brand.
“I am certain that these changes are necessary for our industry-leading brands to reach their significant potential,” Wexner continued. “Nonetheless, decisions about people are the most difficult ones to make, and we are taking care to support associates who are being affected by these changes.”
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