J.Crew’s campaign to regain its leadership spot in the American mall started Monday.
The retailer has rolled out its “New Crew,” initiative with new collections, updated styling, a revamped pricing structure and a stated commitment to transparency. The company’s new look and attitude are immediately apparent on the site, which now features models in plus sizes, basics in a rainbow of colors and a heavy dose of denim.
The question now is whether these changes will be enough to revitalize a brand that, for some, had fallen out of favor.
Neil Saunders, managing director, retail for GlobalData, seems to think so.
“It’s still an admired brand. What they need is to get people to have another look,” he said. “It’s not a brand that’s completely broken.”
Related Stories
Juliana Azuero, research analyst at Euromonitor International, likes the sound of things thus far. “These initiatives are a good start to help the brand to roll back and focus on rebuilding its core identity through the revival of staple items which made them famous in the 90’s and early 2000’s,” she said.
Glimpses of that old J.Crew can be found in its New Icons edit, which features Breton stripes, classic button downs, flattering shirtdresses, layer-friendly crewnecks and sensible loafers.
Saunders said that while it’s right for J.Crew to pursue basics given its “strong heritage” in that arena, “what is very important though is the market is awash in that. J.Crew needs to have a fashion twist and a few quirks in the basic items it produces.”
While that sense of humor or offbeat take isn’t immediately apparent on the site, there are a few pieces like polka dot khakis and message tees that fit that bill.
In addition to addressing the styling issue, the company has vowed to be more inclusive, which it’s doing by extending more of its offering into plus sizes and developing a good, better, best model that can accommodate more income levels.
Saunders said J.Crew finally acknowledging the large swath of the country it has, until now, ignored should pay off twofold. “There’s the ethical dimension recognizing that people come in all shapes and sizes and that tends to go down very well with consumers these days,” he said, pointing to Aerie’s success with body positivity campaigns. “It does increase the market size for J.Crew because there are a lot of people who are plus size and just by providing that option, it has grown its potential customer base.”
In another move intended to broaden the scope of the J.Crew consumer universe—and a sign that the Mickey Drexler days are indeed over—the brand announced a new relationship with Amazon last week. While Drexler vowed not to go there, J.Crew now sells its lower priced Mercantile collection to the online behemoth. While some will always see warning signs where Amazon is concerned, Saunders and Azuero understand the strategy.
“It’s giving people an entry point into the brand and giving basics at good prices,” Saunders reasoned. “Amazon enhances J.Crew’s ability to drive volume and introduces the brand to more people. It’s sensible.”
Azuero agrees that the move “comes as no surprise,” given that others, like Chico’s, have made similar decisions in an effort to goose sales and awareness. “It is smart to sell basic apparel items to Amazon as a wholesaler, but it may not make up for lost sales on higher priced items,” she said.
Another potentially smart move, according to Azuero, was hiring Adam Brotman, the architect of Starbucks’ app, as president and chief experience officer. Brotman’s take on J.Crew’s loyalty program may be just the thing to woo former and prospective fans, she said. “A powerful loyalty program, with all of the data that comes with it, can help the company regain its footing with merchandising and personalized engagement,” according to Azuero.
While new styling and a host of other nip tucks may be exciting from a consumer standpoint, there is one formidable shadow over the entire brand revamp: The company is still hampered by $1.7 billion in debt.
“This is the millstone around J.Crew’s neck,” Saunders said, adding it could ultimately could be the company’s undoing. “In J.Crew’s position, it can’t afford weather issues or a fashion misstep. It’s like walking a tightrope, and it’s easy in fashion to lose your footing.”
While Saunders expects to get an inkling of how well received the New Crew is by holiday, the real results won’t be in for about another year. “It takes time to build brand perception,” he said, adding the company is fortunate to have strong consumer metrics working in its favor. “But the acid test is if they can keep it going.”
Azuero, too, is reserving judgement, saying only that J.Crew has an “uphill battle” on its hands despite positive signs in the first half of this year. “However, it is difficult to know if it’s too late to win back its biggest fans,” she said. “The apparel industry is highly competitive and these changes are coming after years of declines in sales for this brand. Its fans may have moved on permanently.”
