Tags: Amazon | Victoria’s | Secret | Bras

WSJ: Amazon Takes Aim at Victoria's Secret With Its Own $10 Bras

WSJ: Amazon Takes Aim at Victoria's Secret With Its Own $10 Bras

 (Getty/Leon Neal)

Friday, 10 February 2017 09:51 AM

Amazon.com Inc. plans to start selling its own line of competitively priced women’s intimate apparel on its U.S. website in a direct swipe at Victoria’s Secret, The Wall Street Journal reported.

Amazon recently started selling bras for under $10 in Europe, where it uses the label Iris & Lilly, the Journal reported.

"Amazon’s entrance into the lingerie space presents a challenge for industry stalwarts such as PVH Corp.’s Calvin Klein and L Brands Inc.’s Victoria’s Secret, which have built their businesses on bras that retail at around $40," the Journal explained.

At prices under $10 a bra, Amazon is likely sacrificing profit margin to push into the space. Depending on the size of the order, it can cost a large brand like Victoria’s Secret $10 just to produce and ship an underwire bra from a factory in Asia, people familiar with the matter told the Journal.

Meanwhile, Amazon is steamrolling its competitors.

With a current market cap of $390 billion, the Seattle-based retail giant is now worth more than the top eight traditional brick-and-mortar retailers combined, as Credit Suisse analysts led by Eugene Klerk mentioned in a recent note, Yahoo Finance reported.

For the record, that roster includes Best Buy (BBY), Macy’s (M), Target (TGT), JCPenney (JCP), Nordstrom (JWN), Walmart (WMT), Kohl’s (KSS) and Sears (SHLD).

“That’s an impressive, even astonishing feat, no doubt, given Amazon was founded in chief executive Jeff Bezos’ garage in 1994," Yahoo Finance reported.

"But it’s not exactly shocking, given the rapid transition over the last 20 years away from shopping in physical retail stores in lieu of online shopping, where retailers like Amazon can offer lower pricing on products and services because they don’t have to offset the costs of also paying for physical stores," Yahoo Finance reported.

"It also helps that Amazon has invested heavily in building out new warehouses to reduce delivery time of items from weeks and days to hours, in some cases.”

(Newsmax wire services and Reuters and Bloomberg contributed to this report).

© 2021 Newsmax Finance. All rights reserved.


StreetTalk
Amazon.com Inc. plans to start selling its own line of competitively priced women’s intimate apparel on its U.S. website in a direct swipe at Victoria’s Secret, The Wall Street Journal reported.
Amazon, Victoria’s, Secret, Bras
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2017-51-10
Friday, 10 February 2017 09:51 AM
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