It is not long that J.Crew was regarded as the most fancied specialty retailer. From Michelle Obama to Kate Middleton everyone was spotted sporting the brand.
Of late, J. Crew is struggling with plummeting sales. The company is said to have laid off 105 of corporate staff recently.
The brand is slated to have ill-fate like Gap, the brand which was formerly run by Mickey Drexler, who was the former CEO at J.Crew.
Drexler is the person who is identified at the helm of Gap, who lifted Gap out of its initial ditch to become one of the most coveted and powerful apparel brands worldwide.
However, Gap is now in the process of shutting down 175 stores in the midst of declining sales.
The reasons are, J.Crew has lost customer trust. As the brand is trying to increase discounts on some items, the brand may struggle to get customers pay full price for other merchandise.
J.Crew is stuck because of increasing expectation of discounts from consumers. As per the company, discounting has become a necessity not a choice.
The practice can only end of the entire industry comes together to agree to some China-like manipulated market, which is not likely to happen.
As further stated, the outlet strategy of J.Crew has been largely responsible for devaluing the brand’s reputation as a whole. Also, the company’s decision to open J.Crew Mercantile, which is lower priced alternative for the namesake retailer is likely to have similar effect.
Although the Mercantile stores are located in malls rather than in outlet centers, the brand is associated with a discounted model having the J.Crew name attached to it.
If anytime consumers get used to lower priced apparel of their favorite brand, then it becomes difficult to convince them to shell out for the higher priced merchandise.