Retail is currently facing a hugely uncertain time
Victoria’s Secret is closing 250 of their Canadian and US stores for good, it was announced yesterday.
The closure is the result of a huge loss in sales, which has unsurprisingly been caused by the coronavirus pandemic.
All stores across the US have been closed since mid-March, with all sales moving online. Speaking about the closures, the brand’s owner L Brands gave some light on the companies finances, admitting that sales have dropped by 37% in the first quarter of the year, in comparison to 2019.
“Given the high level of uncertainty in the current environment, the company is not providing second quarter or full-year 2020 earnings guidance,”
Aside from plummeting sales, the year hasn’t been good for the brand as they announced that they would be canceling their much-anticipated runway show, the first time it hasn’t gone ahead in 24 years.
The reason for this cancellation the brand said was down to market evolvement, with the company stating that it has been undergoing some change for quite a while.
Interim Victoria’s Secret CEO Stuart Burgdoerfer also spoke yesterday on the 250 closures, saying that they are both necessary and we may need to brace ourselves for more in the coming years.
“We would expect to have a meaningful number of additional store closures beyond the 250 that we’re pursuing this year, meaning there will be more in 2021 and probably a bit more in 2022″ he said.
While the future of the Victoria Secret store in Dublin has not yet been mentioned, it’s clear to see that the Irish high street has already undergone some change due to the current economic climate. With both Debenhams, Oasis, and Warehouse announcing the closure of their Irish stores, this proves as a very uncertain time for retail.