Lingerie company Victoria’s Secret opened its first storefront with Amazon
The company, which listed on the New York Stock Exchange in July 2021 after a spin-off from former parent company L Brands
In this latest move, an initial lineup of 120 products from Victoria’s Secret Beauty and younger-targeted brand Pink will be listed on Amazon in time to ship for Mother’s Day on Sunday, May 8, just over d ‘one week. Fragrances are front and center, led by the Bombshell franchise, claimed as the number one fragrance in America.
Specific products available at launch include:
- Basic fine scents, e.g. Bombshell, Tease and Very Sexy
- Mist and lotion base scents such as Love Spell and Pure Seduction
- Natural beauty consisting of mists, lotions, body scrubs and wash scents
- ROSE mist and lotion scents
- ROSE scrub and body wash fragrances.
Beauty is a growing mainstay for Victoria’s Secret with annual sales approaching $1 billion and accounting for approximately 15% of total sales in North America. In the fourth quarter of fiscal 2021 (ending January 2022), the company’s net sales increased 4% to $2.17 billion “driven by strong performance in our lingerie and beauty categories,” according to CEO Martin Waters on an investor call.
“Expanded Distribution Possibilities”
It noted robust sales for both core and new fragrances while the arrival of Victoria’s Secret Love Cloud bra exceeded expectations and proved to be the brand’s biggest launch in six years. “We have strength everywhere and we feel good,” Waters said.
In March, Victoria’s Secret hinted at a third-party tie-up saying it was “piloting expanded distribution opportunities” as it sought to capitalize on customer loyalty and brand recognition. The company had also been ahead of supply chain delays with inventory up 35% at year-end, putting the brand in a comfortable position to break into new channels this year.
“Through customer feedback and research, we’ve heard from consumers wanting to buy VS Beauty from Amazon’s store and are already researching the products on the site,” said Greg Unis, CEO of Beauty at VS&Co. “It’s a natural chain extension for us.”
Given VS Beauty’s price positioning and brand recognition, volume sales on Amazon shouldn’t be a problem and could also open the door to other categories. The company did not comment on this, but did not rule it out, saying “we will continue to listen to customer feedback.”
Victoria’s Secret expects its overall sales to be flat or growing in the low single digits this year, so additional revenue from Amazon would be welcome. The company also expects supply chain cost pressures to persist in the first half and raw material cost inflation.