Victoria's Secret Stores - Competitors

Victoria's Secret Stores Competition

Now Viewing Victoria's Secret Stores's competition in: Clothing Stores

Recent Developments

Bill may Cut US Apparel Trade Deficit with China - Congress and representatives of 25 textile and apparel trade associations back a bill that would discourage currency manipulation by China and other countries that undervalue their currencies, according to <i>Textile World</i>. Experts say that currency manipulation is a main reason that Chinese imports are much cheaper than US-made products. The Hunter-Ryan Currency Reform and Fair Trade Act of 2007 would permit injured parties to seek remedies under US countervailing duty laws, which may result in clothing stores paying more for imports from China.

US Tax Rebate may Boost Spending - US specialty retailers hope that an economic stimulus package signed by President Bush will boost consumer spending. The $152 billion measure provides tax rebate checks of up to $600 per working individual and $1,200 per married couple, plus $300 per child. US retail sales rose just 0.5 percent in January 2008, the smallest January increase on record.

Recession Fears Spur Inventory Cuts - In early 2008, many retailers reduced inventories due to hints of a recession. February 2008 inventory was down from 5 to 18 percent from the same period in 2007 for some retailers. Experts say that retailers are reducing inventory to avoid having to sharply discount merchandise should a sudden decline in consumer spending occur.

Competitive Landscape

Demand for clothing is strongly influenced by the growth of personal income. During the last recession, same-store sales fell 20 percent at Abercrombie and at Gap. Profitability depends heavily on correct merchandising (product selection) and marketing. Small stores can compete very effectively with large ones by targeting different customers. The industry is labor-intensive: annual revenue per worker is about $110,000. In addition to traditional competition from department stores, new competition in recent years has come from mass merchants like Wal-Mart and catalog and Internet retailers.

Full Industry Overview For Clothing Stores

Clothing Stores Industry Forecast

from Hoover's/D&B subsidiary First Research

US personal consumption expenditures on clothing, an indicator for clothing stores, are forecast to grow at an annual compounded rate of 5.9 percent between 2007 and 2012.

Consumer Spending Growth of Clothing Slows

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.