In shocking business new yesterday, popular lingerie brand Victoria Secret announced they would be closing 53 stores in North America. The closures come after declining sales, especially over the Christmas period. There was other news from the brand though is that Victoria's Secret is launching in a whole new country despite their shutdowns in North America.
The news came out yesterday that Victoria Secret will officially be expanding into Argentina. Grupo David (David Group Enterprises), is the firm in South America that represent Victoria Secret. This firm also works with other companies like Adidas, American Eagle, and La Senza in their South American markets. They confirmed that Victoria's Secret will be launching in Argentina by the end of this year or the beginning of 2020.
This won't be the first Victoria's Secret location down south. Currently, the company has stores in Venezuela, Costa Rica, Colombia, El Salvador, Dominican Republic, Peru, and Panama. Grupo David told South American media that they are also in the process of opening stores in Paraguay and Uraguay.
However, Victoria's Secret in South America looks a little different than it does here. Instead of selling the iconic lingerie, the stores down there are mostly beauty and accessories locations meaning they sell makeup, other beauty products, perfume, and more.
None the less, despite the stores being quite different than the ones that are closing up here in North America, for some, it still begs the question as to why they are expanding down in South America if they're struggling here.
So, Victoria's Secret is closing dozens of stores in North America but plans to launch in Argentina by 2020? pic.twitter.com/2hXIeV1OXc
Grupo David may have the answer for that. Retail Director Gerardo Marcano told La Nacion that they felt now was the best time for Victoria's Secret to get into the Argentina market.
Marcano told them this is because there is a new opening for international brands in the country and those who get in first will be able to dominate the market. He also said that they will be able to take advantage of the lack of competition.
La Nacion also reported that sales at already established Victoria's Secret stores in Latin America were up by 7% in 2018. Their latest goal is to open 12 stores in Argentina over the next five years.