Linda Heasley – CEO, The Limited

The Limited recently experienced its first profitable year in 17 years – when more successful companies are still reporting losses. Here’s how.

By Taylor Mallory

Though it’s been around for 47 years, and now has 4,767 associates and locations in over 200 malls, The Limited hasn’t been profitable in the past seventeen years – until a couple months ago. So why is the clothing store taking off while many long-successful company are still floundering from the recession?

Linda Heasley, who became CEO in 2007, says it started with process. “We kicked every tire and looked under every stone and realized the processes had been set up for a much larger company, so we streamlined everything.” Then a private investment group purchased the company from Limited Brands – parent company of Victoria’s Secret and Bath and Body Works – right before the recession. “The acquisition couldn’t have been better timed. We invested heavily in market research (who is our client and what does she want from us) and in marketing while most other companies were pulling back on it.”

How’s she keeping up the momentum in 2010? “The recent recession has probably permanently altered the way consumers make purchasing decisions. More is not more anymore,” says Heasley, adding that people are still willing to invest in value, but their value equations have changed – as well as their purchasing priorities and consumption. Successful businesses see that and adjust for that.” So the company has changed its messaging to its new, more conservative spenders. “We’re telling her to shop her closet first and then we’ll show her what she can buy to update her wardrobe that will be really versatile.” In the monthly newsletter associates hand out to customers highlighting runway trends and how to get the look at The Limited, there are now sections devoted to versatile ways to wear hot items with what’s already in most closets. And the company has teamed up with Learn Vest, a financial site for women, to help consumers think about their wardrobes as investments – and learn how they can get the most bang for their buck. Finally, “stores are hosting small events where customers can bring in an item from their closets that they haven’t worn for a while but don’t want to throw away, and we’ll show them how to wear it.”

And in March, they will introduce Jodi Arnold for The Limited – kicking off the first in a series of designer collaboration lines. “She has such an artisanal approach to her designs,” says Heasley. “The goal is to help our clients discover something new and different, designers they might not already know.”

PINK: What are the big styles for Spring that work for work?

Linda Heasley: Having spent much of my career in traditional offices, I love this season’s fresh approach to suiting. The military/utility style that has been on runways now has nice, feminine details and a softer look. There are also suits worn with ruffles and florals, which is really refreshing. And short suits or those with cropped pants look really fresh, but they’re not going to be appropriate in many offices. Trenchcoats are huge. We’re going to make a push with those at the end of February. They’re very professional, and if you typically shy away from colors in your wardrobe, it’s a great way to add a pop. And we believe you can “work that skirt” in pencil skirts. They’re just amazing paired with a nice woven or a knit top or with a cardigan or jacket. Graphics in black and white are hot. The color combination makes you look fashion relevant and work appropriate at the same time.

PINK: What’s the best business advice you’ve ever received?
L.H.: “Don’t assume the customer thinks the way you do.” There are examples of great innovation – like the Sony Walkman. No focus group would ever have come up with that idea. So you can surprise her and give her something she didn’t know she needed. But at the same time you have to understand what she wants.

PINK: How do you manage your Life/Work balance?
L.H.: For me, it’s about seizing opportunities to do fun things – and having many outlets for that. I put flowers in every room of my house. I have a wonderful husband and a dog that makes me laugh. I love to throw small dinner parties, and I run every day – to keep myself physically fit and mentally clear. I work a lot (typically 14-15 hour days), but I do appreciate the moments. Laughing makes you live longer. Also I love what I do so much it doesn’t seem like work. I try to take one weekend day to focus on my personal stuff – my husband, my dog, myself. But I use the other day to work a store and be around our clients. That’s one of my favorite things to do – to be a team lead for the day and just talk to clients and sales associates.

PINK: How do you motivate your team?
L.H.: By demonstrating passion and opportunity. I am absolutely convinced we have an incredible opportunity to empower women – with confidence in her look. It’s one less thing she has to worry about. I try to keep it fun and exciting, to make big tasks seem less daunting by telling my employees I believe in them and being as positive as possible. My job is like being a cheerleader. And I don’t ask them to do much I wouldn’t do myself. It’s not beneath me. Retail is detail. And it’s really important to say thank you. I handwrite notes to thank them for things they’ve done well. They’re usually surprised I even know about it and really appreciate being acknowledged.

PINK: What’s one thing most people don’t know about you?
L.H.: I can shoot skeet. We lived in Texas, where you’re expected to hunt. I don’t enjoy hunting, but I can appreciate the hand/eye coordination required. So shooting skeet was my compromise.

PINK: What is your workplace pet peeve?
L.H.: Dirty coffee cups and dishes in the sink.

PINK: What is one personal goal you haven’t yet achieved?
L.H.: Keeping my study clean. I’d like to see Machu Pichu (in Peru) and the Taj Mahal.

PINK: What are your favorite classic style tips you’d give to any woman, any time?
L.H.: Be comfortable in your own skin. Choose a look that makes you feel confident. Nail the look you feel best in, and then don’t be afraid to try new things sometimes. Invest in pieces like a great three-piece suit that you can wear for 10 years and break down into outfits – the jacket with a graphic t-shirt, the skirt with a sweater or the pants with a great blouse. And accessorize! It’s what separates us from the beasts!