Dive Brief:
- Victoria’s Secret launched a Home Fragrance collection on Wednesday, according to company information sent to Retail Dive. Products are available online and in select stores in the U.S. and internationally.
- The collection features nine new fragrances available in candles, scented room sprays, liquid hand soaps and diffuser reeds, among other products.
- “Home Fragrance is a natural next step, extending the brand’s emotional connection into consumers’ homes,” the company said in a statement.
Dive Insight:
Victoria’s Secret is capitalizing on a growing segment of retail.
Home fragrance is a “$2B+ North American category,” per the company, with Global Market Insights placing the value of the market at $10 billion in 2023. The market research company anticipates a 5.5% compound annual growth rate between last year and 2032.
“Consumers view home fragrances as an essential element in enhancing the ambiance and aesthetics of their living spaces,” the research firm wrote.
Beauty has served as a “core driver of growth” for Victoria’s Secret & Co, which has delivered eight consecutive quarters of category expansion. The company places fine fragrance, mist, body care and home fragrance under the larger beauty umbrella.
The retailer’s beauty business, which in its most recent quarter CEO Hillary Super called a “standout,” represents around $1 billion of sales domestically and nearly $2 billion globally.
During a Q2 earnings call with analysts, Super hinted at what was to come, saying the retailer would accelerate its beauty category and build on its fragrance business.
“We see a significant opportunity in beauty, which is a much larger market than intimates, about 4x the size of the intimates market in the U.S. according to third-party data, and offers a clear runway for growth,” Super said.
The launch of Victoria’s Secret’s Home Fragrance collection was specifically timed for the holiday season. Prices start at $19.95 for a 3.4 ounce scented room spray, and go up to $185 for a nine-piece petite candle collection. New fragrances include Whipped Dream, Rose Bohemia, Midnight Vanilla and Santal Amour, among others.
Beyond the nine fragrances in five formats the retailer is introducing gift-ready products and seasonal scents.
In Q2 net sales rose nearly 3% to $1.5 billion. The results were better than expected following a security breach earlier in the year. Comparable sales rose 4% at stores, after decreasing 5% in the year-ago quarter.