Victoria’s Secret & Co. (NYSE: VSCO) today announced a new corporate leadership structure designed to enable execution of its strategy and fuel long-term growth goals. The streamlined organization will unite the company’s three lines of business (Victoria’s Secret, PINK, and Beauty) as a single, collaborative organization, enhancing focus on the customer, and positioning resources towards high growth, high return initiatives.
Commenting on today’s announcement, Martin Waters, VS&Co CEO stated, “Over the last year, we have progressed a thoughtful revolution of our business by redefining the VS brand and rebuilding our strategy for growth. We can now better connect with and represent our millions of customers around the globe. As a result, we have more relevant brand positioning, more compelling merchandise assortments, and a more inclusive culture that celebrates our people. With our brand revolution well underway and gaining momentum, now is the time to reimagine our leadership structure to better align with a shifting consumer landscape and become more efficient as an organization.”
In conjunction with today’s announcement, the company has appointed executives to three key leadership roles reporting to Martin. These roles are aimed at strengthening the core of the business, enhancing the customer experience and igniting growth.
Amy Hauk has been named CEO for Victoria’s Secret and PINK. Amy has been CEO of PINK since 2018 after over a decade of very successful merchandising experience at Bath and Body Works. Under Amy’s leadership, VS&Co will integrate merchandising, planning, marketing and creative teams to quickly apply best practices and consumer insights, speed the company’s test and learn agenda and better engage customers across VS and PINK.
Christine (Chris) Rupp will join VS&Co as Chief Customer Officer, where she will be responsible for creating a seamless store and digital commerce business globally and will be accountable for sales and profitability across both channels. Chris is a transformational digital leader with 30 years in the retail field, including deep data and ecommerce expertise. Chris joins VS&Co from Albertsons where she is the Chief Customer and Digital Officer and has worked since 2019, dramatically expanding the loyal customer base and ecommerce distribution while improving the speed and cost of delivery. Prior to that, Chris was at Microsoft and Amazon, where she led Fulfillment by Amazon and launched Amazon Prime Day.
Greg Unis, who has successfully led the Victoria’s Secret and PINK Beauty businesses since 2016, has been named Chief Growth Officer. In this new role, Greg will be responsible for the VS&Co-Lab platform, new business development, international expansion, as well as mergers and acquisition opportunities. Greg will continue to lead VS&Co’s real estate and store design and construction teams focused on expanding the company’s store of the future initiative.
Martin continued, “Uniting our brands as a single, collaborative organization under Amy’s leadership will bring greater focus and discipline to our merchandising expertise while streamlining our processes and improving our speed to market. I firmly believe combining our store and digital channels under Chris will move us from being a company of ‘shop keepers’ to being a company of ‘customer keepers’. By strengthening our core businesses in this manner, we are freeing up time and resources to focus on growth under Greg’s leadership.”
Today’s announcement of a simplified leadership structure will streamline operations, collapse silos and allow the company to optimize spend in management roles, enabling reinvestment in growth initiatives. The simplification of the organization has led to a reduction of about 160 management roles, or approximately 5% of home office headcount, while providing for reinvestment in non-leadership roles focused on executing the company’s strategic initiatives. The net impact of these decisions will result in an estimated $40 million cost reduction in the run rate of the business on an annualized basis beginning in third quarter of fiscal 2022. In conjunction with the reorganization and reduction in leadership, the company anticipates recording a non-GAAP charge of approximately $30 million in the second quarter of fiscal 2022.