Victoria’s Secret Opens In Canada

In the good news department for Canadian lingerie shoppers: Victoria’s Secret Pink Outlets will start opening in October 2009 in Ontario. Four stores will open initially with more Victoria’s Secret retail locations to follow in 2010.

Victoria’s Secret has always had fans in Canada. Their catalogue always allowed consumers outside of the US to purchase lingerie and have it shipped home. However, buying lingerie that way includes a number of additional costs, from the shipping itself to the issue of buying in one currency and converting to another. For Canadians, being able to buy locally in local currency is bound to be an attraction.

Stuart Burgdoefer, CEO of Victoria’s Secret parent company Limited Brands Inc., has said, “Canada is clearly our focus for company-owned expansion.”

Victoria’s Secret has quite a reputation in the lingerie industry. Aside from its high profile models, past and present, the lingerie itself has mass appeal. Customers can look forward to the 7-Way Bio-Fit bra as well as other high tech bras that are designed to make the most of what a woman has.

Think Canada is a small lingerie market? Think again. The underwear and nightwear market is valued at more than $2 billion dollars. In addition, the Canadian lingerie sector has been growing handsomely: in the past 5 years, there has been almost 30 per cent growth. Canada is projected to continue to grow the lingerie segment, gaining almost 40 per cent by 2013 according to market research firm, Euromonitor.

Existing competition, La Senza, is owned by the same parent company as Victoria’s Secret. Could an increase in Victoria’s Secret come at a cost to La Senza? Neil Linsdell, a retail analyst, thinks not. “La Senza is more $15 to $20 pieces, while Victoria’s Secret is more $30 to $50.” He expects both banners to continue.

Look for La Senza to cater to a younger demographic with lower price points, and Victoria’s Secret to continue to have both racier and pricier pieces that cater to a slightly older, more discriminating buyer.

Source: The Globe And Mail