American Eagle's Aerie is one of those competitors, and it's becoming a bigger threat every day as it continues to grow at a rapid rate.
We visited Victoria's Secret, Pink, and Aerie to see how the shopping experience compared at each of these stores. Here's what we found:
Our first stop was at a Victorias Secret store in Manhattans busy Soho shopping district.
Business Insider/Mary Hanbury
Our first impressions were pretty good. There was a lot of inventory on display, but it was neatly laid out.
Business Insider/Mary Hanbury
There were also no sale signs. Wall Street has been very critical of discounting in recent years. One analyst said he believed Victoria's Secret's sister brand Pink was on the " precipice of collapse, " because of the level of promotions being run there.
In a recent call with investors, CFO Stuart Burgdoerfer addressed this but said that it will "take a little bit of time" to reduce promotional levels.
As well as scaling back on promotions, Burgdoerfer said in the companys most recent earnings call that it is looking at all aspects of the brands marketing. "We are taking a fresh, hard look at everything," he said. "Everything is on the table."
Business Insider/Mary Hanbury
Victoria's Secret has frequently been criticized for its overtly sexual in-store ads and its racy runway shows, especially in the wake of #MeToo.
But the racy images are still highly visible in its stores ...
Business Insider/Mary Hanbury
Analysts have also criticized Victorias Secret for its store design, which hasnt evolved.
Business Insider/Mary Hanbury
"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.
Business Insider/Mary Hanbury
Next, we headed to Pink, the teen-focused brand that is also owned by L Brands.
Business Insider/Mary Hanbury
Pink and Victoria's Secret often share store locations. This was a standalone location, however, that opened in 2010 and is just a block away from the Victoria's Secret we visited.
The lighting, music, and display style is completely different at this teen-focused brand.
Business Insider/Mary Hanbury
Pink was once a sweet spot for Victorias Secret, but in recent years it has also come under pressure and resorted to heavy discounting.
Business Insider/Mary Hanbury
There were no sale signs on display during our visit, but many of the items were being offered at a discount in a bundle package.
There was a ton of neon clothing ...
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... and an overwhelming amount of items with logos.
Business Insider/Mary Hanbury
There were logos everywhere.
Business Insider/Mary Hanbury
Our last visit was to American Eagles Aerie brand.
Business Insider/Mary Hanbury
While Aerie is also often located in an American Eagle store, this was a standalone location that opened in 2018.
This store felt considerably more modern than the first two, which was unsurprising given that it opened more recently.
As we walked in, we spotted a large section devoted to swimwear. This is a category that Victorias Secret dropped in 2016 but will relaunch later this spring.
Business Insider/Mary Hanbury
Aerie has made womens empowerment and body positivity the focal part of its marketing campaign. Analysts say this is behind its explosive success.
Business Insider/Mary Hanbury
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.
Empowering images are scattered all around the store.
Business Insider/Mary Hanbury
In 2014, Aerie committed to not retouching any of its images and launched a campaign called #AerieReal. This has a strong presence in the store.
Business Insider/Mary Hanbury
Overall, the styles seemed a lot more relaxed at Aerie ...
Business Insider/Mary Hanbury
... and the marketing wasnt remotely racy.
Business Insider/Mary Hanbury
Our verdict:
Business Insider/Mary Hanbury
While Aerie had the advantage of being a newer store, the shopping experience was far superior thanks to its modern and bright design and uplifting marketing campaign.
SEE ALSO: Aerie is homing in on Victoria's Secret's biggest weakness
