L Brands Announces closure of Victoria’s Secret Stores in the U.S.

In 2020, nearly 250 Victoria’s Secret stores closed down. On Wednesday, the parent company L Brands announced the closure of 30 to 50 stores across the nation this year.  The parent company plans to open 49 new Bath & Body Works stores in the U.S. and one new store in Canada. The company posted the information online showing its quarterly earnings.

The company stated that the new stores would almost be entirely off-mall locations. Also, plans are in place to close up to 40 stores existing inside the malls. Over the next six months, the Columbus, Ohio-based retailer says it plans to spin off its struggling Victoria’s Secret brand into a separate company. Goldman Sachs will soon begin pitching buyout firms about a potential takeover.

Soap and hand sanitizer sale of Bath & Body Works helped the L Brands post a record fourth quarter. The retailer posted $860.3 million in profits for the three months that ended 31st January. The same quarter last year was a loss for the company. From the previous year, sales rose to $4.8 billion at 2%.

Sales foundered at Victoria’s Secret since the coronavirus pandemic began. However, the pandemic has been a bonus for Bath & Body Works. People have been hoarding soaps, sanitizers, home fragrances, and body care products throughout the pandemic.

In a statement, the company said about Bath & Body Works, “we continue to closely evaluate all locations, especially more vulnerable centers, for risk of closure.”

In 2021, major stores like Macy’s, Bed Bath & Beyond, and J.C. Penney have also announced closures.