Victoria’s Secret CEO Jan Singer has resigned after only two years.This comes amid slow sales and a 14% drop in its stock price at the US Stock Exchange.Sales at the stores that have been open for at least year have dropped by 6% in its last quarter while sales fell by 8% last year in part because of the company’s decision to stop selling swimwear and clothing.The shocking announcement was made as Victoria’s Secret parent company L Brands reported third-quarter results with a net loss of US$42.8 million compared to net income of US$86 million last year.
According to experts the Victoria’s Secret brand is not resonating with consumers, its pricing power is gone, its market share is under permanent attack and the business is over-stored.So far the lingerie giant has closed 23 of its stores including one in New York due of sluggish sales.This has caused young competitors like online stores ThirdLove, Rihanna’s Fenty Savage X, Lively and True & Co. to take advantage by using tech and harnessing data to offer custom sizes and new products.
Victoria’s Secret has been struggling to keep up with changing consumer tastes. Flashy fashion shows, push-up bras and celebrity models aren’t drawing people in like they used to. Instead women are clamoring for more products with a better fit.The lingerie giant announced it had appointed fashion executive John Mehas as the new lingerie CEO hoping to boost its ailing fortunes.They also called the company’s overall performance unacceptable and said that they would be returning to selling swimwear in 2019.
Victoria’s Secret which sells $8 billion worth of underwear a year according to Fortune is still the largest lingerie retailer in the world.But the brand has struggled to grow sales in recent years and has been criticized for failing to keep up with changing consumer demands among younger shoppers who increasingly prefer comfort rather to lace and push-ups.
Singer joined Victoria’s Secret in September 2016 to replace its longtime head Sharen Jester Turney. During her time at the company Singer led a short-lived effort to bring the brand to profitability by promoting low-cost panties instead of bras, as a key product.