DISCUSSION

J.Crew tests its own Old Navy

Written by George Anderson

J.Crew is planning to open a new concept store for customers who like the company's fashion style, but not its prices.

According to a press release issued last week, the first J. Crew Mercantile store will open later this month at The Shops at Park Lane in Dallas, TX. The store will feature "value-driven merchandise with classic J.Crew style for women, men and children." The merchandise sold in the store is designed exclusively for the concept and J.Crew Factory locations.

Mickey Drexler, chairman and CEO of J.Crew, is looking for an answer to the company's struggles in recent years. In the first quarter, J.Crew brand sales were down five percent overall while comp revenues were off 10 percent on top of a three percent decrease during the same period a year earlier. Last month, the company announced executive changes as well as plans to reduce its employee ranks, primarily at the headquarters level, by 175 people.

CBS News financial contributor Mellody Hobson says Mr. Drexler is following a similar path to the one he traveled when he was CEO of Gap Inc. — opening Old Navy as a value price alternative to Gap stores.

J.Crew Mercantile
Source: factory.jcrew.com

Discussion Thread0