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Victoria’s Secret can’t even sell its merchandise at a discount
“We blame customer fatigue, an immunity to Victoria’s Secret’s ongoing promotional stance, and a still underwhelming product assortment, all of which drove a longer sale period, higher promotional levels and resulted in a mid-single digit decline in traffic and high-single digit decline in AUR [average unit revenue].”
Victoria’s Secret has had sales challenges over recent quarters, as customers shift their preference to less expensive bralettes, which don’t have padding, as opposed to the higher-priced ‘constructed’ bras, like the Very Sexy line that the brand is known for.
Victoria’s Secret has faced competition from brands like American Eagle Outfitters Inc.’s AEO, -2.65% Aerie brand in the bralette category. And Amazon.com Inc.AMZN, +0.04% which has a growing roster of private labels, is selling low-cost bras.
The company’s exit from the swim category has also been a challenge.
https://www.marketwatch.com/story/v...sell-its-merchandise-at-a-discount-2018-07-12
“We blame customer fatigue, an immunity to Victoria’s Secret’s ongoing promotional stance, and a still underwhelming product assortment, all of which drove a longer sale period, higher promotional levels and resulted in a mid-single digit decline in traffic and high-single digit decline in AUR [average unit revenue].”
Victoria’s Secret has had sales challenges over recent quarters, as customers shift their preference to less expensive bralettes, which don’t have padding, as opposed to the higher-priced ‘constructed’ bras, like the Very Sexy line that the brand is known for.
Victoria’s Secret has faced competition from brands like American Eagle Outfitters Inc.’s AEO, -2.65% Aerie brand in the bralette category. And Amazon.com Inc.AMZN, +0.04% which has a growing roster of private labels, is selling low-cost bras.
The company’s exit from the swim category has also been a challenge.
https://www.marketwatch.com/story/v...sell-its-merchandise-at-a-discount-2018-07-12