- Victoria’s Secret fell off the ranking of US teens’ favourite clothing brands as part of a recent survey of teen spending habits by Piper Jaffray.
- The brand has maintained a leading position in previous surveys, which Piper Jaffray releases twice a year.
- The company has struggled in recent years and has been accused of alienating core customers with racy ads. Same-store sales numbers at its brick-and-mortar stores are down 5% in 2018.
Teen shoppers are being turned off of Victoria’s Secret.
The lingerie retailer, which also owns teen-focused brand Pink, fell off of a list of US teens’ favourite clothing brands as part of a recent survey of teen spending habits released by Piper Jaffray in October.
Victoria’s Secret has maintained a leading position in previous surveys, which Piper Jaffray releases twice a year. However, a drop in popularity among its young female shoppers meant that it didn’t make it into the top 10 ranking this time.
It also appeared on the list of 10 retailers that teens are no longer shopping from for the second time.
Victoria’s Secret has struggled in recent years and has been accused of alienating core customers with racy ads. Same-store sales numbers at its brick-and-mortar stores are down 5% so far in 2018 and flat overall.
Pink, the teen-focused line that used to be one of the retailer’s sweet spots, has also come under pressure. CEO Denise Landman, who is set to retire at the end of the year, said same-store sales for this brand alone were down in the mid-single digits in its most recent quarter.
Meanwhile, more body-positive brands such as American Eagle’s Aerie have been gaining market share. In May, American Eagle reported a record 38% increase in same-store sales at Aerie for the first quarter of 2018. It also announced its plans to grow Aerie into a $US1 billion business and open between 35 and 40 stores across the US this year. In the Piper Jaffray survey, American Eagle was voted the second-most popular clothing brand among teens.
Analysts are attributing Victoria’s Secret’s current woes to a brand image problem and say its rail-thin models fail to resonate with female customers. This is particularly evident in its annual runway show, which was recorded on Thursday and will air on December 2.
“VS’ fashion show illustrates how out of touch the brand still is,” Jefferies analyst Randal Konik wrote in a note sent out to clients this week.
“With TV ratings that have been in free fall for years and a consumer that no longer resonates with ‘supermodels’ we question why the company continues to hold the show. We expect ratings to continue their decline this year and the Victoria’s Secret brand to lose mindshare.”
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