The secret is out

Victoria’s Secret eyes Puerto Rico for long-term expansion; retail scouts attend Sephora opening; ongoing talks with Plaza Las Américas point to 2012 opening

They may have tried to keep their visit under wraps, but CARIBBEAN BUSINESS learned that real-estate and marketing representatives from Victoria’s Secret attended the recent opening of the first Sephora store in Puerto Rico at Plaza Las Américas.

Representatives from the lingerie chain came to Puerto Rico exclusively for the Sephora opening, which could provide good insights into local market acceptance of a potential local Victoria’s Secret store. A Sephora-store executive confirmed the not-so-secret visit by Victoria’s Secret, but provided no details.

Although Plaza Las Américas officials were unaware of Victoria’s Secret visit, they confirmed conversations with the lingerie chain date back many years. However, for the first time in more than a decade, there is a letter of intent from Victoria’s Secret expressing interest in the Puerto Rico market—specifically at Plaza Las Américas.

“But that won’t be in the near future, rather it points to a 2012 development if ever confirmed,” explained Plaza Las Américas spokeswoman Lorraine Vissepó, adding that the opening of Sephora, another retailer long sought by the Hato Rey mall, topped all expectations.

Industry experts agree a local Victoria’s Secret would be a big draw. Many Puerto Rican women have long been familiar with the brand through frequent trips stateside and through its popular catalogs.

The quick visit to Puerto Rico is consistent with Limited Brands CEO Leslie Wexner’s annual report expressing interest in exploring expansion opportunities for the company’s top brands outside the North American territory. Puerto Rico, part of the U.S. market and among the country’s top-10 retail markets in sales per square foot, is a natural fit for Victoria’s Secret, as well as Bath & Body Works, another Limited Brands company.

Victoria’s Secret, dedicated to the sale of women’s intimate apparel, personal care, beauty products and accessories, operates more than 1,043 stores in the U.S. mainland and 322 in Canada under the La Senza brand. It posted net sales of $5.6 billion in 2008. Bath & Body Works, with 2008 net sales of $2.37 billion, is a leading retailer in the personal care, beauty and home fragrances business.