Ted Hurlbut

J. Crew to Put Outlet Savings Online

August 31, 2010

FROM RETAILWIRE:
J. Crew Group plans to put its factory outlet sales online in September in a bid to make its deals more accessible for cash-strapped consumers. How do you weigh the cannibalization risks for Crew versus the opportunity to reach more value-conscious consumers?      [more...]

To me, it really comes down to the value customers place on the J.Crew brand. It seems to me that they, like many similar brands, have found that the customer has bid down the value of the brand, despite their best efforts otherwise. Average selling prices have fallen, margins have narrowed, and the only way to make up those dollars is to sell more at lower prices.

They can spin it any way they'd like, but this is what so much of the apparel industry is experiencing. They are doing nothing more than positioning the brand to do business in channels and at price points that the customer will support. It's the new normal.