It's common in conversations with retailers today to hear about a given chain's pursuit of a seamless shopping experience, regardless of where or how a purchase is made. While most seem to talk the talk these days, there are those making the attempt, at least, to walk the walk. A case in point is L Brands, parent company of Victoria's Secret, which announced a reorganization plan to bring together current store operations and its various consumer direct options into unified business divisions.
Going forward, L Brands will restructure into three business units: Victoria's Secret Lingerie, PINK and Victoria's Secret Beauty. The company will integrate its direct to consumer business, primarily online, within each of the three divisions. Plans call for the company to focus more on brand-building and loyalty programs than discount offers and print catalogs.
While most reorganizations occur when companies are facing headwinds, L Brands decision comes after posting positive results. L Brands achieved a total sales increase of five percent year-over-year for the nine weeks ending April 2. Same-store sales during the same period were up four percent.
"Coming off a record year, now is the best time to make improvements ... going from best to even better," said Leslie Wexner, chairman and CEO of L Brands, in a statement. "We are making these changes to accelerate our growth and to strengthen the business for the long term by narrowing our focus and simplifying our operating model. I am certain that these changes are necessary for our industry-leading brands to reach their significant potential."