John Boccuzzi, Jr.

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...]

The move by J.Crew to make factory outlet items available online is a smart move as long as they do the following:

1) Have a limited assortment that does not overlap their general merchandise at regular stores and on-line. As with most factory outlet divisions today, many of the items are made specifically for the factory outlet stores. Mr. Drexler stated that was going to be the approach.
2) The on-line store becomes a treasure hunt site with limited quantities and rotating lines. By creating an online outlet store like this you will encourage consumers to not wait to make a purchase. You will also create a site that increases visits by shoppers since there are always new items with limited quantities.

3) You create an easy way for shoppers to enter the regular on-line store from the on-line outlet store. This will encourage shoppers to visit the regular on-line store when they can't find their size, color or style on the outlet store.

Factory outlet stores and regular stores, whether online or brick and mortar, can play together and mutually benefit if approached correctly. This looks like a real win for J.Crew.