Victoria's Secret is facing new competition, this time from Target, which is gearing up to enter the lingerie and sleepwear market.
According to a report in CNBC, Target will launch three lines of lingerie and sleepwear this spring in direct competition to Victoria's Secret. The lines include Auden, which will be intimates, Stars Above for loungewear and sleepwear and Colsie for all three categories.
For Victoria's Secret, which is owned by L Brands and is still the largest retailer of bras and underwear in the U.S., it is a direct assault that it doesn't need as it struggles to maintain its dominance. Women are increasingly switching to more comfortable options which is hurting its business. As it stands now Victoria's Secret's direct competitors include Third Love, Lively, Adore Me and American Eagle-owned Aerie, noted the report. With Victoria's Secret struggling to grow, it has opened the door for Target to swoop in and steal market share. The news outlet noted that same-store sales at Victoria's Secret have declined for the past three years. Its parent company's stock has been under pressure, and is down about 44 percent from last year, according to the report.
Citing Target, the report said that 40 percent of the retailer's shoppers want to purchase intimates and sleepwear at Target stores or online. With its customer based skewed toward women, Target has an opportunity to provide more choices. All of the new bras in the new line will be priced under $22 and will include plus sizes. The loungewear and sleepwear will cost under $30, according to the report. Target also plans to add Bra Fit Studios for shoppers so that they can find items based on their fit, band and cup, and will offer a “Find Your Fit” tool on its website.
“We want to create the ultimate destination for our guests — one that’s inviting and inspiring and allows all women to feel comfortable and confident,” Jill Sando, senior vice president and general merchandise manager of apparel and accessories at Target, said in the report.