Carlos Arámbula

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...]

I believe J.Crew loyalists will recognize the factory brands as such and will look at the line as an additional resource, not a replacement for their current J.Crew products.

Factory products are an effective way to bring new entries into the J.Crew franchise. The new entries will remain at the entry point or migrate to the non-factory products. Gap already does this with their Banana Republic brand and they have found a way to co-exist the two lines without cannibalization.