J.Crew Company Briefing
With continued success in its domestic market, J.Crew is looking overseas for growth having already increased the number of delivery locations for its website in 2012. Physical re-entry into Asia & plans to open in London are expected to be successful due to its strong product offer. Further expansion via new fascias and investment in menswear & childrenswear also bode well for its US business.
- Benchmark J.Crew's performance by discovering its five year sales and profit history.
- Consider new growth opportunities by uncovering how J.Crew has targeted an underserved market via its Ludlow suiting store concept.
- Consider your own international expansion strategy by building awareness of J.Crew's plans for overseas growth.
J.Crew's success can be attributed to its highly innovative stance, with the group constantly looking at how it can better serve customers & cater to new consumer groups. Under the leadership of Mickey Drexler and creative director Jenna Lyons, the retailer makes sure it gets the product right, with strong design & good fit helping to boost sales.
At the end of Q3 2012/13, J.Crew operated 392 stores predominantly in the US. There is still opportunity for expansion in North America, particularly considering the extensive networks of rivals. A focus on expanding its Madewell brand and standalone childrenswear & menswear stores will see J.Crew's domestic network increase in the coming years.
- How have J.Crew's clothing sales and densities developed over the past five years?
- How has the retailer expanded its online presence to test markets prior to physical entry?
- How has J.Crew enhanced its domestic business with a new personal shopping proposition?
Table of contents
Strong brand image and innovation are the driving forces behind J.Crew's appeal;
Domestic opportunities remain for J.Crew and sister brand Madewell;
Online expansion supercedes physical expansion in the UK and Asia;
Must build a seamless multichannel business to further grow sales;
More investment in menswear and childrenswear is needed to build business.
Innovative retailer eyes global expansion
Potential for domestic and international expansion
Recent key events
Invests in global expansion but bolsters domestic business with new fascia and enhanced service
Achieved impressive five-year sales growth
Direct business forecast to maintain double digit growth in 2011–13
Sales growth slows in past two years
Sector performance – clothing & footwear
Womenswear share falls as focus turns to menswear and childrenswear
Space productivity forecast to recover in 2012/13
Investment in footwear reaps rewards
Verdict company briefing
Market size calculation
Sales density calculation
Ask the analyst
Table: J.Crew company information, 2012
Table: J.Crew retail proposition, 2012
Table: crewcuts retail proposition, 2012
Table: Madewell retail proposition, 2012
Table: J.Crew key operating statistics, 2008–13e
Table: J.Crew Group trading record, 2003–13e
Table: J.Crew Group store portfolio, 2003–13e
Figure: J.Crew store in Vancouver, 2012
Figure: Lane Crawford International Finance Centre Mall, Hong Kong
Figure: J.Crew's Very Personal Stylist service
Figure: J.Crew sales and growth to January 2008–13e
Figure: J.Crew operating profit and growth to January 2007–12
Figure: J.Crew Direct sales and growth to January 2008–13e
Figure: J.Crew clothing & footwear sales mix for 2008 and 2013e
Figure: J.Crew clothing sales to January 2008–13e
Figure: J.Crew clothing sales per sq ft to January 2008–13e
Figure: J.Crew footwear sales to January 2008–13e
Figure: J.Crew shoe and accessories salon in a San Francisco store, October 2011