Dan Berthiaume

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...]

Outlet items online is a great idea. Many consumers may live hundreds of miles from their nearest outlet, and full-priced J.Crew stores are not even that accessible compared to the footprint of other higher-tier apparel retailers such as Macy's. And since most outlets are grouped in large destination areas, outlet store sales will likely not be cannibalized too badly as consumers will still make their outlet pilgrimages and visit the J. Crew store while they are there.