L Brands, owner of Victoria’s Secret, is mulling over restructuring its business, with focus on the core categories. Elaborating on the restructuring plans, L Brands stated that while eliminating a few merchandise categories, it would create three units within Victoria’s Secret’s business — Victoria’s Secret Lingerie, Pink and Victoria’s Secret Beauty.
According to L Brands CEO and founder Leslie Wexnertook, “Coming off a record year, now is the best time to make improvements, going from best to even better,” Wexner said in a company statement. “I am certain that these changes are necessary for our industry-leading brands to reach their significant potential.”
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The brand has released its sales report for March, which highlighted sales at established stores above analysts’ expectations. Overall, the company saw a sales growth of 3 per cent.
Sonia Lapinsky, a director in the retail practice of consulting firm AlixPartners, said, “It’s a really forward-thinking perspective that we don’t often see with retailers these days.
“Victoria’s Secret is doing well and this is the perfect time to be laser focused and make sure they continue to go win the strategic places they’re best at,” she added.
The brand aims to focus more on core business. The brand will also cut about 200 jobs between its New York office and headquarters in Columbus, Ohio. While other changes include integrating the online business so that it no longer operates as a separate unit from stores.