Case Study: Victoria's Secret Essay

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Case Study: Victoria's Secret


Victoria's Secret, one of the world's most recognizable fashion brands, established itself in the Bay Area in the early 1970s. Originally owned by an ambitious Stanford graduate looking for a comfortable and high-end retailer to buy his wife lingerie, Roy Raymond opened the first store at Stanford Shopping Center. Styled after a Victorian boudoir, Raymond's success prompted him to open three other locations, a catalog business, and a corporate headquarters within a few years. His inability to balance finances with his creative vision, Roy Raymond fell into trouble and was forced to sell his company for the small sum of $1 million dollars to The Limited, an Ohio-based conglomerate
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Replacing Pink is Intimissimi, an Italian brand that is expected to impact 6-8% of the store's sales, but caters to a more sophisticated client. Thrid party brands are also making a stronger appearance this year as the store became a ‘critical fashion' destination. New lines from Betsy Johnson, Anna Sui, Chantal Thomass and Pleasure State create a new sophistication for the store, but its higher price may alienate the average shopper. The launch of the new Very Sexy Makeup line also impacted our ability to accurately compare October 2005 with the same month in 2006. A complete renovation of the make up line launched in September 2006 provided heightened figures from the beauty zone, again making yearly comparisons difficult. The good news is that new product lines as immense as those listed above are not on the agenda for 2007 and will provide a stronger correlation for future data.

DATA COLLECTION The data for the analysis was collected through daily, weekly and monthly results posted by Victoria's Secret. Every day an email is delivered to the stores releasing information regarding the store's current sales, its comparison to last year, the transactions and the conversion of traffic (i.e. How many shoppers made a positive purchase). The actual traffic was calculated by taking the total transactions for the
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