The US clothing group Victoria’s Secret & Co. is expanding its portfolio. On Tuesday, the company said it had signed a binding agreement to purchase lingerie supplier Adore Me Inc. Accordingly, Victoria’s Secret plans to acquire all shares in the 2011 founded e-commerce specialist. The transaction is expected to be completed at the end of January next year and, in addition to an initial one-time payment of USD 400 million (EUR 402 million), will also include future, partially performance-related components, according to a statement.
The group expects “significant benefits” from the planned takeover. The acquisition gives him access to a young target group that complements the existing customer base, the lingerie supplier explained. In addition, he wants to use Adore Me’s “expertise and technology” in the future to accelerate the modernization of his digital platform and to improve the shopping experience at his regular brands Victoria’s Secret and Pink.
In this context, the company referred in particular to the “Home Try-On” service developed by Adore Me, with which the label was able to build strong customer loyalty. As part of a subscription, participants regularly receive personalized laundry packages that they can try on at home and purchase if necessary. On the basis of a “complex combination of its own logistics, algorithms and operational components”, Adore Me has now succeeded in successfully scaling this offer, the designated parent company explained.
“This shopping experience offers a compelling new option for Victoria’s Secret regular customers and is an example of the next generation of retail innovations that can complement the world-class offerings of Victoria’s Secret brick-and-mortar stores,” the company said.
With the planned acquisition, the company is advancing its recently presented growth strategy. Among other things, this envisages acquisitions in order to also address target groups in the future in which the lingerie supplier has so far been “underrepresented”.