We went shopping at Victoria's Secret and Aerie, and 4 key differences revealed why one is winning while the other is flailing
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Business Insider/Mary Hanbury Aerie is known for not retouching the photos it uses in ads.
Victoria's Secret is the longtime leader of the underwear market in the United States, but it is increasingly coming under pressure as new brands enter the market and chip away at its market share.
This includes American Eagle's Aerie, which, since 2014, has doubled down on body-positive marketing in an effort to appeal to a new generation of shoppers.The reviews are extremely positive online. "Probably one of the best Victoria's Secret stores I have ever been [to]," one shopper wrote on Yelp.
"The customer service here is spectacular," another said.
For this reason, we were expecting a shinier version of a typical Victoria's Secret store.
Our first impression was good — the store was well organized and the inventory was neatly laid out.
It wouldn't take much for this to descend into chaos, though. Piles of inventory are a recipe for disaster in busier times.
Our first impression was also good. The store was light and bright, and inventory was neatly displayed in a similar way to Victoria's Secret. Panties were stacked up on tables.
The space was definitely modern, and it did feel a lot brighter than some of the brand's other stores. However, it still had Victoria's Secret's signature dark lighting and black painted walls.
"Its overt sexuality ... and its dark and moody stores are completely out of step with the mood of most modern consumers," Neil Saunders, managing director of GlobalData Retail, wrote in a note to clients in November.
While Aerie's store is slightly newer, it felt considerably more modern than Victoria's Secret because of the brighter lighting.
Aerie has made women's empowerment and body positivity the focal part of its marketing campaign. Analysts say this tone is behind its explosive success.
Earlier this month, American Eagle reported a 23% increase in same-store sales for Aerie during the fourth quarter, marking the brand's 17th consecutive quarter of double-digit positive growth.
Meanwhile, at Victoria's Secret, there was a host of racy images in-store.
Brand marketing has become one of the most controversial areas of Victoria Secret's business, and it has frequently been criticized for its over-sexualized in-store ads and racy runway shows, especially in the wake of #MeToo.
L Brands CFO Stuart Burgdoerfer said that the brand is addressing this.
"We are taking a fresh, hard look at everything," he said in the company's most recent earnings call. "Everything is on the table."
The focus is certainly on "sexy" here.
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