Store revamps, “promo detox,” core to retail turnarounds

Many retailers have been on the comeback trail over the past few years, and two this week hit notable sales milestones as they turn up their turnarounds.

Victoria’s Secret: Just over a year into its Path to Potential turnaround strategy, Victoria’s Secret, Pink, and Beauty divisions all secured double-digit sales growth in Q1, with total sales jumping 15%. The retailer reported it’s now notched four straight quarters of comp sales growth, up 13%.

The company secured growth in February for the first time in eight years, thanks to a strong Valentine’s Day showing buoyed by a partnership with Hailey Bieber.

On the earnings call, CEO Hillary Super said a key part of this success has been “promo detox,” i.e., cutting down on its promotion in favor of “compelling emotional messaging.” The effort has helped raise its average selling price, she said, adding that its recent store opening in New York City’s SoHo, which saw consumers lining up at 1 a.m. on opening day, resulted in “strong regular price demand.”

Super said the company got its strongest growth from consumers with income under $50,000 and more than $200,000, highlighting the “the broad resonance of our brands across the consumer landscape.”

The company continued to mount comebacks for its bra category, PINK, and beauty, with all three seeing low double-digit sales growth in Q1. Major marketing wins in the quarter were Angels Among Us, its viral search for the next Victoria’s Secret angel, which generated 1.7 billion media impressions, along with its partnership with Angel Reese.

Macy’s: Macy’s Bold New Chapter initiatives, first introduced in 2024, are paying off, CEO Tony Spring said, as the retailer had a “better-than-expected performance” in Q1. The company recorded 3% comparable sales growth, its strongest first quarter comp sales growth in four years. Bloomingdale’s saw its best-ever first quarter sales volume, and 10.2% comp growth, while Bluemercury’s comp sales jumped 6.4%.

It’s been revamping its stores through its “Reimagine” strategy, he said, and those locations saw 2.4% comp growth compared to other Macy’s stores’ 1.6% increase. In Q1, it updated 75 additional locations, bringing its total Reimagined stores to 200.

“What I love about the program is it’s a recipe,” Spring said. “It’s not one idea; it’s the merchandise, it’s a better assortment, it’s the presentation, it’s better storytelling, it’s more people in the stores, it’s better service...It’s service in the fitting room. It’s service in the beauty department when people sit down in a chair and decide on what their beauty regimen is.”