Victoria's Secret is the largest American retailer of lingerie and was founded by Roy Raymond in 1977.2012 sales were $6.12 billion.The company sells lingerie, womens' wear, and beauty products through its catalogs (sending out 375 million a year), website, and its U.S. stores. Victoria's Secret is wholly owned by publicly traded L Brands company.
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1982: Sale to The Limited
Raymond's philosophy of focusing on selling lingerie to male customers became increasingly unprofitable and Victoria's Secret headed for bankruptcy.In 1982, it had grown to six stores, a 42-page catalogue, and was grossing $6 million annually. Raymond sold Victoria's Secret Inc. to Leslie Wexner, creator of Limited Stores Inc of Columbus, Ohio, for $1 million.(Though the figure was not disclosed until later.)
1983: Strategy change
In 1983, Leslie Wexner revamped Victoria's Secret. He discarded the money-losing model of selling lingerie to male customers and replaced it with one that focused on women.Victoria's Secret transformed from "more burlesque than Main Street" to a mainstay that sold broadly accepted underwear. The "new colors, patterns and styles that promised sexiness packaged in a tasteful, glamorous way and with the snob appeal of European luxury" were supposed to appeal to and appease female buyers. To further this image, the Victoria's Secret catalog continued the practice that Raymond began: listing the company's headquarters on catalogs at a fake London address, with the real headquarters in Columbus, Ohio.The stores were redesigned to evoke 19th century England.
From at least 1985 through to 1993, Victoria's Secret sold men's underwear.
In 1986, four years after the sale, The New York Times commented, "in an industry where mark-downs have been the norm, the new emphasis is on style and service". The lingerie business was changing fast.
1983–1990: Expansion into malls
In the five years after the purchase, The Limited had transformed a three store boutique into a 346 store retailer.Howard Gross took over as president, from his position as vice-president, in 1985.In October that year, the Los Angeles Times reported that Victoria's Secret was stealing market share from department stores;[28] in 1986, Victoria's Secret was the only national chain of lingerie stores.The New York Times reported on Victoria's Secret's rapid expansion from four stores in 1982 to 100 in 1986; and analysts's expectations that it could expand to 400 by 1988.In 1987, Victoria's Secret was reportedly among the "best-selling catalogs". In 1990 analysts estimated that sales had quadrupled to $120 in four years, making it one of the fastest growing mail-order businesses The New York Times described it as a "highly visible leader", saying it used "unabashedly sexy high-fashion photography to sell middle-priced underwear."Victoria's Secret also released their own line of fragrances in 1991.
1990–1993: Persistent quality problems
By the early 1990s, Victoria's Secret faced a gap in management that led to the "once hot lingerie chain" to be "plagued by persistent quality problems". Howard Gross, who had grown the company into a "lingerie empire"since Wexner's 1982 purchase, was moved to poorly performing L Brands subsidiary Limited Stores.Business Week reported that "both divisions have suffered"
1993–1999: Nichols resolves quality problems
Grace Nichols, who was President and CEO at that time, worked to resolve the quality problems; their margins tightened resulting slower growth in profitsVictoria's Secret introduced the Miracle Bra selling two million within the first year; but faced competition from Sara Lee's WonderBra a year later. The company responded to their rival with a TV campaign.By 1998, Victoria's Secret's market share of the intimate apparel market was 14 percent. That year Victoria's Secret also entered the $3.5 billion cosmetic market.In 1999, the company aimed to increase its coverage with Body by Victoria.
Early 2000s:
Decelerating growth leads to brand overhaul In May 2000, Wexner installed Sharen Jester Turney, previously of Neiman Marcus Direct, as the new chief executive of Victoria's Secret Direct to turn around catalog sales that were lagging behind other divisions.Forbes reported Turney articulating, as she flipped through a Victoria's Secret catalog, "We need to quit focusing on all that cleavage."In 2000, Turney began to redefine Victoria's Secret catalog from "breasts—spilling over the tops of black, purple and reptile-print underthings" to one that would appeal to an "upscale customer who now feels more comfortable buying La Perla or Wolford lingerie."; "dimming the hooker looks" such as "tight jeans and stilettos"; and moving from "a substitute for Playboy in some dorm rooms," to something closer to a Vogue lifestyle layout, where lingerie, sleepwear, clothes and cosmetics appear throughout the catalog.
Beginning in 2000, Grace Nichols, CEO of Victoria's Secret Direct, led a similar change at Victoria's Secret's stores - moving away from an evocation of 1800s England (or a Victorian bordello).
2006–2008: Growth
By 2006, Victoria's Secret's 1,000 stores across the United States accounted for one third of all purchases in the intimate apparel industry.
In May 2006, Wexner promoted Sharen Jester Turney from the Victoria's Secret catalog and online units to lead the whole company.In 2008, she acknowledged "product quality that doesn't equal the brand's hype".In September 2006, Victoria's Secret reportedly tried to make their catalog feel more like magazines by head-hunting writers from Women's Wear Daily.
Raymond's philosophy of focusing on selling lingerie to male customers became increasingly unprofitable and Victoria's Secret headed for bankruptcy.In 1982, it had grown to six stores, a 42-page catalogue, and was grossing $6 million annually. Raymond sold Victoria's Secret Inc. to Leslie Wexner, creator of Limited Stores Inc of Columbus, Ohio, for $1 million.(Though the figure was not disclosed until later.)
1983: Strategy change
In 1983, Leslie Wexner revamped Victoria's Secret. He discarded the money-losing model of selling lingerie to male customers and replaced it with one that focused on women.Victoria's Secret transformed from "more burlesque than Main Street" to a mainstay that sold broadly accepted underwear. The "new colors, patterns and styles that promised sexiness packaged in a tasteful, glamorous way and with the snob appeal of European luxury" were supposed to appeal to and appease female buyers. To further this image, the Victoria's Secret catalog continued the practice that Raymond began: listing the company's headquarters on catalogs at a fake London address, with the real headquarters in Columbus, Ohio.The stores were redesigned to evoke 19th century England.
From at least 1985 through to 1993, Victoria's Secret sold men's underwear.
In 1986, four years after the sale, The New York Times commented, "in an industry where mark-downs have been the norm, the new emphasis is on style and service". The lingerie business was changing fast.
1983–1990: Expansion into malls
In the five years after the purchase, The Limited had transformed a three store boutique into a 346 store retailer.Howard Gross took over as president, from his position as vice-president, in 1985.In October that year, the Los Angeles Times reported that Victoria's Secret was stealing market share from department stores;[28] in 1986, Victoria's Secret was the only national chain of lingerie stores.The New York Times reported on Victoria's Secret's rapid expansion from four stores in 1982 to 100 in 1986; and analysts's expectations that it could expand to 400 by 1988.In 1987, Victoria's Secret was reportedly among the "best-selling catalogs". In 1990 analysts estimated that sales had quadrupled to $120 in four years, making it one of the fastest growing mail-order businesses The New York Times described it as a "highly visible leader", saying it used "unabashedly sexy high-fashion photography to sell middle-priced underwear."Victoria's Secret also released their own line of fragrances in 1991.
1990–1993: Persistent quality problems
By the early 1990s, Victoria's Secret faced a gap in management that led to the "once hot lingerie chain" to be "plagued by persistent quality problems". Howard Gross, who had grown the company into a "lingerie empire"since Wexner's 1982 purchase, was moved to poorly performing L Brands subsidiary Limited Stores.Business Week reported that "both divisions have suffered"
1993–1999: Nichols resolves quality problems
Grace Nichols, who was President and CEO at that time, worked to resolve the quality problems; their margins tightened resulting slower growth in profitsVictoria's Secret introduced the Miracle Bra selling two million within the first year; but faced competition from Sara Lee's WonderBra a year later. The company responded to their rival with a TV campaign.By 1998, Victoria's Secret's market share of the intimate apparel market was 14 percent. That year Victoria's Secret also entered the $3.5 billion cosmetic market.In 1999, the company aimed to increase its coverage with Body by Victoria.
Early 2000s:
Decelerating growth leads to brand overhaul In May 2000, Wexner installed Sharen Jester Turney, previously of Neiman Marcus Direct, as the new chief executive of Victoria's Secret Direct to turn around catalog sales that were lagging behind other divisions.Forbes reported Turney articulating, as she flipped through a Victoria's Secret catalog, "We need to quit focusing on all that cleavage."In 2000, Turney began to redefine Victoria's Secret catalog from "breasts—spilling over the tops of black, purple and reptile-print underthings" to one that would appeal to an "upscale customer who now feels more comfortable buying La Perla or Wolford lingerie."; "dimming the hooker looks" such as "tight jeans and stilettos"; and moving from "a substitute for Playboy in some dorm rooms," to something closer to a Vogue lifestyle layout, where lingerie, sleepwear, clothes and cosmetics appear throughout the catalog.
Beginning in 2000, Grace Nichols, CEO of Victoria's Secret Direct, led a similar change at Victoria's Secret's stores - moving away from an evocation of 1800s England (or a Victorian bordello).
2006–2008: Growth
By 2006, Victoria's Secret's 1,000 stores across the United States accounted for one third of all purchases in the intimate apparel industry.
In May 2006, Wexner promoted Sharen Jester Turney from the Victoria's Secret catalog and online units to lead the whole company.In 2008, she acknowledged "product quality that doesn't equal the brand's hype".In September 2006, Victoria's Secret reportedly tried to make their catalog feel more like magazines by head-hunting writers from Women's Wear Daily.