The brand was founded in 1977 by Stanford graduate student Roy Raymond and his wife, Gaye Raymond, and the original five stores were sold in 1982 to Les Wexner. Wexner quickly expanded the company into American malls, reaching 350 stores nationwide and $1 billion in sales by the early 1990s, by which time Victoria's Secret had become the largest lingerie retailer in the United States. What followed is history: the company currently has 1,380 stores in over 70 countries and generates annual revenues of over 6 billion dollars. Victoria's Secret was officially founded on June 12, 1977 by Roy and Gaye Raymond, who opened the first store in the Stanford Shopping Center in Palo Alto, California. The idea started from a personal experience: Roy Raymond felt embarrassed trying to buy underwear for his wife in a department store. He later stated: «When I tried to buy underwear for my wife, I was confronted with terry dressing gowns and nylon nightgowns with ugly prints, and the saleswomen seemed to think I was an unwelcome intruder,» wrote the American publication Newsweek. Raymond decided to create a store where men could feel comfortable buying underwear. He studied the market for eight years, and in 1977 he borrowed $40,000 from his family and another $40,000 from the bank to open Victoria's Secret—a store designed specifically to eliminate men's shopping discomfort. The name of the brand refers to Queen Victoria and the refinement of the Victorian era, and the «secret» was what was hidden under the clothes. In the first year, the company generated $500,000 in revenue, enough to finance expansion to four new locations and the launch of catalog sales. By 1982, annual sales had reached $7 million, and the catalog accounted for 55% of revenue. In 1982, Victoria's Secret had five stores and a 40-page catalog, generating annual revenues of $6 million. Roy Raymond sold the company to Les Wexner for $1 million. Wexner radically changed the business model, orienting the brand towards the female clientele.Read the full article on Business MAGAZIN.
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