Victoria’s Secret & Co. is shutting down its subscription service tied to its direct-to-consumer brand, Adore Me, a program that was part of a $400 million deal aimed at modernizing the lingerie giant. The decision to end the subscription service comes as the company seeks to refine its strategy and focus on a loyalty model that will replace the existing program.
The Adore Me acquisition was a key part of Victoria’s Secret’s efforts to revamp its business and appeal to a younger demographic. The company had hoped that the subscription service would help drive sales and increase customer engagement, but it appears that the program did not meet expectations. Victoria’s Secret & Co. ($VSCO) has been working to transform its brand and improve its online presence, and the decision to end the subscription service is likely a response to changing consumer behavior and market trends.
The lingerie market has become increasingly competitive in recent years, with brands like Savage X Fenty and Cuup gaining popularity among younger consumers. Victoria’s Secret & Co. has faced challenges in recent years, including declining sales and a reputation for being out of touch with modern consumers. The company has been working to address these issues, including the launch of new product lines and marketing campaigns.
The decision to end the subscription service is likely to have implications for Victoria’s Secret & Co.’s financial performance, at least in the short term. The company had invested significant resources in the Adore Me acquisition and the development of the subscription service, and the shutdown of the program may result in write-downs or other charges. However, the company’s decision to focus on a loyalty model may ultimately pay off if it is able to drive customer engagement and increase sales.
| Key Metrics | Value |
|---|---|
| Acquisition Price | $400 million |
| Expected Annual Revenue | $100 million |
| Subscriber Base | 100,000+ |
Looking ahead, Victoria’s Secret & Co. is likely to focus on refining its loyalty model and driving customer engagement. The company may also explore new partnerships or acquisitions to support its growth strategy. As the lingerie market continues to evolve, Victoria’s Secret & Co. will need to stay agile and adapt to changing consumer trends in order to remain competitive.
⚡ Why it matters: The shutdown of Victoria’s Secret & Co.’s subscription service is a significant development in the lingerie market, and may have implications for the company’s financial performance and growth strategy. The decision to focus on a loyalty model may ultimately pay off if it is able to drive customer engagement and increase sales.
📊 By the numbers:
$400 million: Acquisition price of Adore Me
$100 million: Expected annual revenue from the subscription service
100,000+: Subscriber base
🔗 Source: Victoria’s Secret & Co.*
