Still Slumping, Victoria's Secret Turns To Amazon, Walmart


Victoria's Secret, looking for ways to battle persistently declining sales, is now offering more than 4,000 bras, panties, sleep, swim and loungewear items from the Victoria's Secret and Pink collections through Amazon.

In its announcement, the company calls the Amazon Fashion connection "a natural extension of our owned channels."

Victoria's Secret already sold some beauty products through Amazon, but this is a new move for apparel. Some bra and apparel styles will be included in Amazon's Prime Try Before You Buy, which lets consumers try out clothing at home before paying for them.

The news comes days after Victoria's Secret reported yet another drop in quarterly sales, with revenues sliding 5% to $1.41 billion for the first quarter, compared to net sales of $1.48 billion in the comparable period of 2022. On a comparable sales basis, those results dropped 11%.



Net income sank to $1 million, compared to $81 million.

Sales at Adore Me met expectations. And international sales stayed strong.

The company chalked the results up to a sputtering U.S. economy with consumers reconsidering discretionary purchases. That pushed the Reynoldsburg, Ohio-based chain to use more promotions and markdowns to woo consumers to cash registers.

"Sales performance was particularly challenging in our core categories where there was a significant decline in the overall stores and digital intimates market in North America," said Martin Waters, chief executive officer, in the earnings report.

The company is deep into plans to reverse its sales slump, promising innovative bra launches; a new strategy for Pink, its once-hot and now-spiraling line for younger shoppers; and new digital experience initiatives. It's also updating many of its 1,350 stores, which remain the backbone of its retail business.

For the full year, it now forecasts sales will be between flat and down in the low-single-digits.

In a conference call discussing the results, Waters said the promotional environment hits Victoria's Secret hardest in the panty business. While it still dominates that market with a 26% share, he names competitors Amazon, Walmart and Target, that sell them "at a commodity price. It's harder for us to compete just on the basis of newness and quality and innovation. So we end up being drawn into a promotional battle."

That helps explain the company's decision to partner with those rivals in new ways. Besides Victoria's Secret's new alliance with Amazon, Adore Me is working with Walmart on a lower-priced line called Adored by Adore Me.

Modern Retail reported that news last month and says the items are available online and in 1,900 Walmart stores.

Victoria's Secret continues to be the most significant player in the intimates business, with Barclays reporting it has a total share of 20% of that market.

1 comment about "Still Slumping, Victoria's Secret Turns To Amazon, Walmart".
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  1. Deanna Davis from Minorly Obsessed, June 11, 2023 at 7:01 a.m.

    Victoria Secret suffers from a values problem they do not appear to be seeking to correct. The company uses an older model of premium product to appeal to its legacy customers whose focus is to attract the male gaze. In todays era of Me Too, this is out of step with the modern customer. Additionally, their lines lack size inclusivity outside of Adore Me and suffer from an exclusion of 20+ size models. Plus according to the singer Jax,
    "I know Victoria's secret
    And, girl, you wouldn't believe
    She's an old man who lives in Ohio
    Making money off of girls like me"
    Cashin' in on body issues
    Sellin' skin and bones with big boobs
    I know Victoria's secret
    She was made up by a dude (dude)"
    As more consumers choose to purchase from companies that align with their values, Victoria's Secret will continue to suffer sales loses from its flagship brand. 

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