Victoria's Secret has to be closed down
The news followed as the company continued to report a drop in sales during the Coronavirus Pandemic. Victoria's Secret is one of the most popular lingerie, swimwear, cosmetics and accessories companies in the world, but even such a well-known company had to note a drop in sales due to the coronavirus' global pandemic.
At a meeting with the analyst, the Chief Executive Officer of Victoria's Secret said: "What we see is a slightly smaller but more profitable business with a better foundation and, of course, a return to growth that we all expect".
With all these closures in mind, the main L Brands brand company notes that they will give up 22% of the company's 1091 shops in addition to 1.26 million square feet of real estate. The head of the company said: "We expect to close more of the company's other shops in addition to the 250 we are giving up this year, which means there will be more closure in 2021 and a little more closure in 2022".
Bath Body Works will close 50 shops across America and 1 in Canada. In the first quarter of the year, sales of L Brands products decreased by 37% in addition to the closure due to COVID-19. However, Bath Body Works recorded a 20% increase in sales of soap and hand sanitizers. "What we are now very focused on is strengthening the business foundation to cope with the crisis and lay the foundation for division and growth", said L Brands CEO. In February Victoria's Secret had to sell half of the company to a private equity firm in New York City, but due to COVID-19 the deal had to be cancelled in early May.