J.Crew makes the jump to Amazon’s marketplace
J.Crew is the latest retailer to test the proposition that it makes more business sense to work with Amazon.com while competing against it. The two companies announced the creation of a new online storefront on Amazon’s marketplace featuring a curated assortment from J.Crew’s Mercantile line for men and women.
The Mercantile brand is J.Crew’s version of a discount line, with a focus on everyday clothing items featuring updated designs of classic styles. Items in the collection start at prices in the teens.
“J.Crew’s mission to engage our customers wherever they want to shop makes Amazon the right partner for J.Crew Mercantile,” said Aaron Rose, chief of emerging business for J.Crew, in a statement. “Their broad-reaching shopping destination supported by our shared interest in service and convenience will introduce the initial collection of colorful everyday basics and fashion to a new audience. We look forward to working together to expand the Mercantile Shop on Amazon and help our customers build their wardrobes.”
J.Crew recently reported its first same-store sales increase (+ one percent) in almost four years. The collaboration with Amazon also coincides with a relaunch of the J.Crew brand earlier this week that CEO Jim Brett said includes lower price “gateway products so people can enter the brand.”
“We were starting too high,” Mr. Brett said in an interview with CBS News. “So, it’s not about taking all prices down. It’s just about having those easy pick-me-up items so that anyone who walks in the store can walk out with something.”
Mr. Brett, a retail veteran who joined J.Crew in July 2017 after serving as president of West Elm, has a long history working in fashion. Previous stints including working as chief merchandising officer for Urban Outfitters. His experience also includes merchandising roles at Anthropologie, J.C. Penney and May Department Stores.
- Amazon Fashion Launches J.Crew Mercantile – Amazon.com
- J.Crew Mercantile – Amazon.com
- J.Crew Group, Inc. Announces Second Quarter Fiscal 2018 Results – J.Crew Group, Inc./PRNewswire
- J.Crew relaunch to reflect “diversity of America,” CEO Jim Brett says – CBS News
- What will happen to J.Crew without Mickey Drexler as CEO? – RetailWire
DISCUSSION QUESTIONS: Is J.Crew making the right moves by lowering entry prices on its core brand and selling a curated selection of its Mercantile brand on Amazon’s marketplace? Will these moves help turn J.Crew around?