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Muskoka Post Staff
Victoria’s Secret won’t be bringing much sexy back post COVID-19 as it will be closing 13 of its 38 stores in Canada.
According to a commentary which accompanied the company's first-quarter earnings report their total sales declined 37 per cent in the first quarter ending May 2. L Brands also owns Bath & Body Works which is also slated to shutter stores in the US and Canada.
“We estimate that we will close approximately 250 stores in the U.S. and Canada in 2020. We are also actively evaluating strategic alternatives to reduce or eliminate losses in the U.K. and China and; A holistic review of our home office organizations, which will include the decentralization of significant functions and services in support of creating standalone companies and a meaningful reduction in overhead expenses, along with a focus on retaining key talent,” stated the report.
It seems the retail economic fall out from COVID-19 is so massive that the company commentary did not provide a Second Quarter 2020 Outlook and instead said that “given the high level of uncertainty in the current environment, we will not be providing second quarter or full-year 2020 earnings guidance. We intend to thoughtfully open stores throughout the second quarter, taking steps to ensure the safety of our customers and associates, and adhering to government guidelines. We expect that the majority of our stores will be open by the end of July. We will also continue to maximize our growth online.”
Economic experts are predicting that more retail closures are on the horizon as shopping habits shift during COVID-19. In the last two weeks other retailers have announced closures and bankruptcy restructuring among those are Pier 1, Aldo, Reitmans, as well as US giant Neiman Marcus.