Ooh La La Senza! Lingerie chain planning to be more intimate

News - canada.com

Cash-rich La Senza Corp. said yesterday it will open about 15 more stores in Canada and add new intimate products as it builds its international brand name via 249 affiliated stores in 23 countries.

The 14-year-old La Senza, whose motto is: "We ship worldwide," now claims 37 per cent of the domestic market (age 15-29) for lingerie, sleepwear and accessories, against 11 per cent for arch competitor Wal-Mart Canada.

With openings in new "power centres," it will have more than 300 La Senza and Silk & Satin and La Senza Girl units across Canada by yearend and 260 stores operated by licensees in 27 countries, including Pakistan, Saudi Arabia and South Africa.

With problems in the U.S. out of the picture, La Senza is focusing solely on growth and market share, Irving Teitelbaum, chairperson, co-founder and CEO, told analysts yesterday.

But he is not yet ready to embrace the income trust model. Though a changeover might raise the share price with a lower tax rate that would be offered and please shareholders, the model does not fit easily with a "dynamic" specialty retailer like La Senza with international operations, he said.

"We've explored converting to an income trust as one of many options for the future," he added, "but we've so much cash we can consider strong organic growth as well as acquisitions - strictly within our sector."

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