• The Wall Street Journal (subscription required), Wednesday, June 20, 2007 11:30 AM

Lingerie is the fastest-growing apparel category after handbags. Hoping to steal some thunder from the Limited's Victoria's Secret chain, retailers, including J.C. Penney, Target, and Kohl's, are launching lingerie lines, giving old ones a makeover, or redecorating dressing rooms and offering professional fitting.

Driving the growth are new technologies and fabrics that allow for such innovations as laser-cut seamless bras and the growing fashion appeal of lingerie. Many younger women today have no compunction about "wearing inner-wear as outerwear," says Marshal Cohen, chief research analyst with NPD Group-allowing, for instance, colorful bra straps to show without embarrassment. That creates a market for lingerie to change with the seasons instead of just being bought as "replenishment."

Other companies, including Chico's FAS, American Eagle Outfitters and Charming Shoppes's Lane Bryant, have created stand-alone lingerie stores. Victoria's Secret is fighting back by expanding many of its store locations by 50%, and it is testing new categories in its stores, such as swimwear, accessories and workout clothing.

Read the whole story at The Wall Street Journal (subscription required) »