Limited Brands bought it in 1982› Four stores and a catalog

Victoria’s Secret grew with little help› Grew to a $5-billion in sales company› Began focusing on mainstream customers

In 1990’s, began stocking more colorful, European inspired lingerie

Over time, began adapting to a more skin-baring culture

“Pink” brand launched in 2002› $900 million in sales during 2007› Many lines began to imitate Pink› Relied too heavily on “Pink”s success

Decline in sales› 12% drop in net income› Stocks fell more than 11%› 8% drop in holiday sales

“Pink” line targets teenagers and college age students

Store front and corporate image changed

Older customers feel uncomfortable

Older customers have a more refined sense of sexy

Negative Response› “Trashy” and “Uninspiring”

American Eagle Abercrombie & Fitch J.C. Penney Target Kohl’s Frederick’s of Hollywood Wal-Mart

Competitors target all age groups Alienated customers find new places to

shop

Broadening the target audience Reworking the lines

› Including more diversity Remodeling the stores Super Bowl Commercialhttp://www.youtube.com/watch?v=71yE5C7_xLw

Fashion Show

Win back the customers lost Improve the Quality Make lines for all age groups