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J.Crew - the end is near?

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    J.Crew - the end is near?

    Once in a while I wander into a local T.J.Maxx and check out the clearance racks - I usually don't find anything, but I get lucky a couple of times a year. This weekend, I saw something I've never seen before - J.Crew stuff in the store - and not just J.Crew, but Wallace and Barnes! If J.Crew is dumping stock at T.J.Maxx - seems like a bad sign...
    Mark

    #2
    damn id love to find some of that wallace and barnes stuff in there!

    I dont know that i agree with everyone saying jcrew is in trouble or done. I honestly think they are an excellent source for clothes. I wont pay full price, but i love a lot of their offerings when the sales hit.

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      #3
      I am taking a tangent for an old man rant.

      J. Crew and the Gap family of stores (among others) have trained us to never pay full price for anything, and now they are stuck. If they would just offer the clothes at reasonable prices to begin with, they would not need to have this never-ending stream of sales. I am old enough to remember when you could get good quality clothes from J. Crew at reasonable prices. Every. Day. Sales were just to clear out seasonal items. Of course, this was before e-commerce (and an extensive retail network) when you had to call the 800 number to buy from them.


      JC Penney found itself in a similar situation a few years ago when they tried to wean customers off the weekly sales in favor of lower prices every day, and it didn’t go so well for them (or the then CEO). So, I wonder if a change in strategy would work for these companies.

      Rant complete.


      Sent from my iPhone using Tapatalk

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        #4
        I’ve seen mainline Brooks Brothers, Todd Snyder, BR, J Crew etc at TJMaxx and Marshalls for years. The quality/brand of the items seem to be region specific. I live in OH, and rarely see those brands at home. When I visit S. FL I make a point to hit these stores because they seem to generally have better items/brands.

        I don’t see this as a significant sign of trouble.

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          #5
          J Crew is under a huge mountain of debt. They have more serious problems than where they sell their merchandise. It wouldn't be a shock to see them go under one of these days.

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            #6
            J. Crew, carries a debt load exceeding $1.7 billion, but I don't know if that has anything to do with their clothes being sold at T.J.'s.

            Comment


              #7
              Originally posted by caktaylor View Post
              I am taking a tangent for an old man rant.

              J. Crew and the Gap family of stores (among others) have trained us to never pay full price for anything, and now they are stuck. If they would just offer the clothes at reasonable prices to begin with, they would not need to have this never-ending stream of sales. I am old enough to remember when you could get good quality clothes from J. Crew at reasonable prices. Every. Day. Sales were just to clear out seasonal items. Of course, this was before e-commerce (and an extensive retail network) when you had to call the 800 number to buy from them.


              JC Penney found itself in a similar situation a few years ago when they tried to wean customers off the weekly sales in favor of lower prices every day, and it didn’t go so well for them (or the then CEO). So, I wonder if a change in strategy would work for these companies.

              Rant complete.


              Sent from my iPhone using Tapatalk
              for me, it is not the fact that a sale would make them cheaper, its about a sale making them in my price range. I just cant part with 70 - 80 for a pair of chinos or shorts etc.

              Comment


                #8
                Originally posted by caktaylor View Post
                I am taking a tangent for an old man rant.

                J. Crew and the Gap family of stores (among others) have trained us to never pay full price for anything, and now they are stuck. If they would just offer the clothes at reasonable prices to begin with, they would not need to have this never-ending stream of sales. I am old enough to remember when you could get good quality clothes from J. Crew at reasonable prices. Every. Day. Sales were just to clear out seasonal items. Of course, this was before e-commerce (and an extensive retail network) when you had to call the 800 number to buy from them.


                JC Penney found itself in a similar situation a few years ago when they tried to wean customers off the weekly sales in favor of lower prices every day, and it didn’t go so well for them (or the then CEO). So, I wonder if a change in strategy would work for these companies.

                Rant complete.


                Sent from my iPhone using Tapatalk
                They didn't cause the behavior or expectation. Shoppers in the price range don't buy full price. Studies have been done and they are interesting. Higher prices clothing does well at consistent prices. Value branded clothing only moves on sales. It's not about the prices themselves it's about the mentality of the customer base.


                Sent from my iPhone using Tapatalk

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                  #9
                  Originally posted by Alex.C View Post
                  rarely see those brands at home.
                  TJ Maxx homegoods and marshalls all have a store tiering scheme, where stores in the higher prices markets get the most expensive merchandise. i think there are 3 tiers but I could be wrong. it's purely based on the perceived customer of the store, And their ability to purchase something impulsively for a reasonably good price.

                  Comment


                    #10
                    Originally posted by idvsego View Post
                    They didn't cause the behavior or expectation. Shoppers in the price range don't buy full price. Studies have been done and they are interesting. Higher prices clothing does well at consistent prices. Value branded clothing only moves on sales. It's not about the prices themselves it's about the mentality of the customer base.


                    Sent from my iPhone using Tapatalk
                    Also, not everyone knows about the constant sales. If you get a tourist walking through a mall, they may pay full price. Or the person who goes out to buy new clothes once a year, etc. If there's no sale running BR just got them to pay full price. It's a win/win situation for them when combined with the mentality described above for the customers who wait for sales.

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                      #11
                      I will usually buy at sales but I've also Def bought at full price before if im with the wife and kids at the mall and go to jcrew to kill time and see something I like. I'm sure there are people that usually buy at full price just because they buy what they like without really looking at the tag. I would be really curious to see what percentage of their sales were at full price VS sale price.

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                        #12
                        Originally posted by smitty View Post
                        J Crew is under a huge mountain of debt. They have more serious problems than where they sell their merchandise. It wouldn't be a shock to see them go under one of these days.
                        If I'm reading their annual 10K right, they've made about 4 million dollars total over the last two years before any interest payments. They've clearly got a problem selling their merchandise.

                        Comment


                          #13
                          Originally posted by halfmacgas View Post
                          I will usually buy at sales but I've also Def bought at full price before if im with the wife and kids at the mall and go to jcrew to kill time and see something I like. I'm sure there are people that usually buy at full price just because they buy what they like without really looking at the tag. I would be really curious to see what percentage of their sales were at full price VS sale price.

                          Sent from my SM-G975U1 using Tapatalk
                          40% today only. 50% if you have a j crew card.

                          Comment


                            #14
                            I wish I could remember exactly what the article I read about a year or two ago said. It was from a legitimate source like WSJ or Forbes.

                            The gist of it was that J Crew has essentially put themselves into this spot where no one thinks their clothes are worth the full retail price anymore. This happened when they went from selling reasonably priced, decent quality clothes to trying to sell “high quality” clothes for higher prices. Now they are constantly having to discount all of this merchandise in order to move it, and this is resulting in incredibly low profit margins and mountains of debt.

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                              #15
                              Originally posted by abh159 View Post
                              I wish I could remember exactly what the article I read about a year or two ago said. It was from a legitimate source like WSJ or Forbes.

                              The gist of it was that J Crew has essentially put themselves into this spot where no one thinks their clothes are worth the full retail price anymore. This happened when they went from selling reasonably priced, decent quality clothes to trying to sell “high quality” clothes for higher prices. Now they are constantly having to discount all of this merchandise in order to move it, and this is resulting in incredibly low profit margins and mountains of debt.
                              They aren't. Lets be real. The colors fade faster and the stitching isn't on par with what they used to be. I have no idea which came first but I don't think the clothes are worth full price anymore. Maybe I have just become more picky too. Don't get me wrong, big j crew fan. But not at full sticker. At that price point they are just another face in the crowd.


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