Endangered Species: Victoria’s Secret, Gap Join The List
Will Victoria's Secret be the next store to succumb to Amazon and other online retailers?
The company on Friday announced 53 store closures, though did not specify which stores will be closing. Their sister retailer, Bed, Bath and Beyond actually is doing quite well.
Experts attribute Victoria's Secret's problems to the company's failure to adapt to women's needs for custom bras. Push up bras sales have sagged as the style has gone out of favor. Rivals, including start-ups like Third Love, have taken away business with custom fit brassieres and by using regular women rather than models to promote the company. Another factor is Victoria's Secret has been marketing with coupons which cuts into the profits.
CNBC says, joining the list of companies closing stores is Gap. They will be closing 230 stores over the next two years. This on top of Payless Shoe Source going out of business a few weeks ago.
Taken in total, a good portion of American retail is set to collapse and leave the shopping landscape, and with it many entry level jobs.