Retailing Strategies of The Limited Inc.


Retailing Management
Dr. Heiens
AMKT 551



























Jason Myers


Table of Contents





Introduction ………………………………………………………… 3

Products and Target Markets ………………………………………. 5

Growth Objectives ………………………………………………… 8

Competition ………………………………………………………. 8

Site Location ……………………………………………………… 9

Marketing and Promotion …………………………………………. 10










A.Introduction

The Limited, Inc. is an international company committed to building a family of the world\'s best fashion brands that will maximize shareholder value by eliciting strong consumer demand across a variety of disciplines, demographics, and lifestyles. Our primary focus today is to purchase, distribute, and sell women’s, men’s, and children’s apparel, women’s intimate apparel, and personal care products. We emphasize rapid turnover of merchandise to keep our line fresh and current with latest fashion trends. Through six subsidiaries, the Limited operates 3,008 specialty stores and owns 84% of Intimate Brands, Inc., which consist of Victoria’s Secret, Bath & Body Works, White Barn Candle Company, and Gryphon Development, Inc. We also operate an integrated distribution system to support our retail activities.
Our first phase of growth began in 1963 when we began with a single Limited store in Columbus, Ohio which soon increased to hundreds of Limited stores. From this modest beginning through our second phase of growth ending around 1992, we have focused on building businesses without building bureaucracy. As we began our third phase of growth, we realized that simply working harder at the same thing would not sustain our growth into the future. We decided that our future was in brands and that we did not have the expertise to succeed in this arena.
We chose a new Chief Financial Officer and hired presidents and other top executives with experience in retail specialty brands. We added expertise in fashion design, brand positions, store planning, information technology, production, and communications. The apparel industry is a rapidly changing one. In our competitive market, our agenda is always formalized and implemented quickly. Our planning schedule is fourteen months ahead of the sales target. Strategic planning is extremely important in our business. In 1999, we relocated the Victoria’s Secret beauty business to New York City to enhance our future business in the world market.
We do not tolerate losers. As a result of a 1997 review of the Company’s retail businesses and investments, we have recently made some tough decisions to streamline operations by closing stores and businesses that do not meet our company goals. The Limited Two was spun-off in August of 1999. We sold our 60% majority interest in Galyan’s also in August 1999. Abercrombie & Fitch was split-off in May of 1998. Five of the six Henri Bendel stores were closed in 1998. The 1998 level of eight specialty retailers is now down to a more efficient, competitive six. We are mobilizing our efforts toward brands that offer the greatest growth potential. Our Chairman and CEO, Leslie H. Wexner, believes in accentuating the positive and eliminating the negative. His motto is not "bigger is better" but that "better is better."
And what better way to accentuate the positive than to endorse the philosophy that "none of us can achieve our goals without help." Leslie Wexner needed the support of family and friends when he started this company thirty years ago and believes that he has a responsibility to pass that help along to others. He established The Limited, Inc./Intimate Brands, Inc. Foundation to that end. Today this foundation supports more than 100 organizations in the communities of our associates and customers. Some of the more well known are the American Cancer Society, American Red Cross, Big Brothers/Big Sisters, Dress for Success, Habitat for Humanity, Martin Luther King, Jr. Arts Complex, Make a Wish Foundation, and Special Olympics.

B. Products and Target Markets

Our customers are increasingly demanding diverse and affordable merchandise of the highest quality and integrity. With over 5,300 stores internationally and six retail brands in 1998, there are many avenues to satisfy every customer. Our business is divided into two families. The apparel business presently consists of six brands and one support organization. The Express, Lerner New York, Lane Bryant, The Limited, Structure and Henri Bendel provide 3,008 specialty stores to showcase our products for our two selling seasons of Fall and Spring. Mast, Inc. supports the apparel industry. Our intimate brands offer three unique styles of product to compliment our apparel business for the consumer. Victoria’s Secret, Bath & Body Works,