Referencing {FAQ}

Monday, January 5, 2009

J.Crew Tries To Reset Price Points {will it work?}

In the "J.Crew's New January Catalog Online To View {yey!}" post, Anon at 11:35 AM mentioned the following (great) observation: "Has anyone else noted that in the catalog pages they are noting the starting prices of the items and that they are lower than they have been in the past? (i.e., suede ballet flats starting at $98 as opposed to $138-$148 in the past). ...with a number of items in the catalog I noticed that the price was a tad lower than in the past (a pink/reddish dress at about $98 when in the past it would have been retailed at about $118 or $128). Anyway, just something that caught my eye."

Well, we have some super smart Aficionadas (and Aficionados) as exampled by Anon at 1:14 PM (in the same post) who answered with the following: "This is a deliberate strategy to increase sell through at full price. It was discussed in the 3Q conference call and ballet flats were one of the examples given: ...

Brian Tunick - J.P. Morgan

We watched you the last couple of years. Your gross margins have been up I think 700 basis points. You’ve run a very full priced business. Now what happens going into 2009 is a lot of your customers are probably looking for the additional 50% off clearance you’ve been offering them. How do you reposition J.Crew to get back to a full priced business going forward?


Millard S. Drexler

I think that’s a really good question. ... I think the reset button has been pushed on value in America; homes, cars, gasoline, clothing, apparel, stocks, and everything else. So I think it’s hard to figure out when we come out of this. It is all about inventory management. ...


I will tell you what we’re doing without talking too much to our competitors. There’s clearly an opportunity. It’s interesting. Believe me, none of us is having fun running businesses today I don’t care what the business is. But I think what’s going on is a lot of this is playing into our hand in terms of our opening price points where in fact they were at some times higher than we’d like.


We’re going out with categories this spring; it’s too late now because it is what it is; and I think consumers are driving it and determining retail. But our ballet flat category will start at under $100 for the first time ever.
We’re doing T shirt businesses at prices with good margin by the way and margin’s a function of sell-through along with high initial margin. So in some cases, this is all merchandising, you might take a point or two off initial if you can get better sell-throughs.


We’re looking at the competition now in that regard too. ...Having been through this a couple of times before in my career, the right goods win out if you’re managing the inventories correctly. So I don’t want anyone to think that’s not a critical issue here. We’ve all been caught by this tailspin of consumers not shopping other than for sales but we have key categories like ballet flats.


We’re weighting our inventory differently than we have this past fall. You’ll see inventory weighted towards more friendly price points so that it kind of averages out. And it’s all again dependent upon the inventory and the sell-through. But I think the reset button’s been pushed on price and I think we’re all dealing with where that will end up.
...

But I think that’s going to be really the billion dollar question for the retailers: When will they trust your prices again?
"

I find this fascinating and I am curious if J.Crew's new "lower price point" strategy will work. :) Personally, I feel like I have been "trained" in the past few months to see some amazing sale prices, accompanied with great promotions (e.g. free shipping and additional percent off sales). So it's difficult for me to justify a full price purchase when I think the item will go "on sale" in just a few weeks. ;)

What are your thoughts on the lower price points to get customers to spend closer to the "full retail" price? Do you think customers will "reset" their price points? Do you think this strategy will work during these economic times against other competing retailers?

74 comments:

  1. that is quite interesting. At JCrew, I usually wait to buy things until they go on sale because they always do. same wiith banana republic.

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  2. It works . . . in theory. I know I would be glad to pay less. The lower the price the higher the impulse to purchase. That's how it works for me anyway. By the way, this reminds me of that video I showed you.

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  3. I with the first post. I usually wait for items to go on sale, especially since new items have been discounted almost as soon as they're on the website. Now that we're spoiled, spring/summer should be interesting.

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  4. I totally agree. I think we have all gotten used to checking the websites for new promotions over the holidays and saving our shopping bags on the website until we can get a discount. I fully expect to continue to see more promotions offered online (not as many, but still more than usual) simply because, as you said, we have all been spoiled and will hold out for things to go on sale. All the holiday promotions have taught us to be frugal and patient.

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  5. Laura - totally agree. I've changed my shopping habits (particularly with JCrew) because of this past season.

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  6. Laura-Ha! Frugal, I wish:)

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  7. I think someone has already mentioned this, but they're also lowering the retail prices for many current items. Some of these items had their sale price altered to retail. It's still the same price, just not longer appears in red as sale.

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  8. Interesting comments. I think that if J.Crew is trying to get back to full price sales, it may be a tough reversion in terms of missed items. I'm happy to hold off for a sale, but if the company is keeping their inventories low, many more items will sell out more quickly, and I won't ever get the items or deals I did before Christmas. They very well might succeed in their strategy if they do price things just slightly less and prep us into thinking our size or colour will sell out quickly.

    I'm not one for having to have everything, and there are a lot of items I "have to have" but never get. That's just the way of it. Then again, I'm considering paying full price for the Cate flats, for the first time...

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  9. :) alright, maybe frugal is the wrong word. I definitely won't splurge on new arrivals as often as I have in the past unless I think it is an absolutely must have piece that will go quickly.

    Speaking of that, does anyone know how people find out how many of a particular item/size/color they have available online? I've noticed several people posting that online has so many of a certain item left, but I have no idea how to find out this information. Instead, I just place things in my shopping bag and cross my fingers that they are still there when I check out.

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  10. Fluffles -

    Good point on inventory being lower. I guess that is to be expected with the retail environment as it is currently. And obviously many of us are truly addicted to J. Crew and will still be willing to pay full price. Inventory is very likely to go quickly. If I do pay full price for something I love, my budget will definitely not go as far. Also, I will be trying things on more at the store to be sure the items I am purchasing fit properly and are as beautiful as they appear online (and also ordering at the red phone to get free shipping and student discount to get as much bang for my buck)

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  11. I also wonder if inventory will now be lower due to the reduced prices. Sometimes I prefer to buy an item at full price rather than chase sales. Then I get to enjoy it even longer :) That being said, I spent a lot of $ during the winter promos on pieces I might not have considered before, such as the Maggie jacket that I ended up loving!

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  12. You can check inventory by placing 99 of an item in your cart. If there are less than 99, J. Crew will adjust the number to reflect the number actually available (supposedly!).

    Hope that helps!

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  13. Lee -

    Thanks for the help! That will definitely aid me in my decision to check out now or later!

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  14. The recent sale prices have been amazing and I snapped up a few things, but it seems like the things I like go on sale slightly, then sell out in the color / size I want. :) So if they lower their price points slightly, I could see myself paying full price for the items I really like.

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  15. that is why if i love something and am afraid it will sell out in my color and size, i buy it full price immediately, keep the tags on, and then wait to see if it goes on sale. usually it works, and no harm done! but you have got to be vigilant... i've become too good at this it is sickening.

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  16. Correct me if I am wrong but I could see them start to carry less inventory perhaps next season (meaning full-on Summer and going into Fall) because I get the impression they would have already bought for Spring/Summer in the fashion we have become accustomed to...with greater quantities??

    Then again, specialty items this past Fall were indeed special as in the Floral Astrid or Kennedi Jacket with limited quantities available.

    Overall, I think it will be tough for the long-term, loyal JC buyer to become accustomed to buying things at full price and to change their mindset from waiting for a sale or percent off. It would definitely have to happen over a good deal of time and if they could change the image that has been ingrained in the avg consumer. That is something that people for many years have bragged about.."JC has such great sales."

    With limited quantities-you may not get that "must have" piece by waiting for sale anymore (due to sold out) but I think that the "must have" item will also be more obviously special when you see it and perhaps you will expect less inventory available??

    I know it's been presented in several articles etc. that in their ideal world, they want to offer specialty "collection" items in less qty that will demand the price. I think they will always carry 500 perfect fit tees etc.

    I honestly think every retailer (even before the economic crunch) had so many sales/coupons and the average consumer really is accustomed to buying "on sale." That type of thinking is not going to change overnight.
    Just my 2, er, 20 cents;)

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  17. I've been wondering a lot about this myself lately. While it's been fun finding some of my favorite designers on deep discount over this Christmas (DVF, Nanette Lepore, Rebecca Taylor, and even J Crew) it's also a bit disconcerting. While I've been loving the sales and buying things left and right, I also wonder- how will this impact the "image" of the brand? And what does it mean exactly for these designers and companies?

    It will be interesting to see how it all plays out. Obviously, it's smart to market and sell your items in an appropriate price point, and with the tough economy people are going to be spending less and looking for better sales. But what does this mean for some of our favorite designers and luxury brands? It's just so hard to say. It makes me kind of nervous, truthfully.

    What a very interesting post, Alexis! Thank you

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  18. I think it will be interesting to see. I think the retailers will adjust and buy less inventory for
    Q2-Q4. However, in the whole supply-demand rubric, less inventory would mean the retailers, including JCrew, would not be forced to have the fire sales like we just had.

    Someone posting about price elasticity and heady macro-econ theories earlier pointed out that the law of economics is less supply = higher prices.

    So, if there is less inventory, there will not be much incentive for JCrew to lower their prices to those we saw this past fall/winter.

    We all hold our breaths and wait. . . .

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  19. I wonder if lowering price also translates into a lower quality product? Sure, one way they can control their costs is by lowering inventory, but this can also mean lowering material and labor costs. If I recall, years ago most of JCrew clothing was manufactured in Italy. Now everything is made in China and the quality of their fabrics/clothing has gone downhill. I wonder if they'll start manufacturing their shoes in China. Maybe they will go the same way as Coach.

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  20. Regarding the smaller inventories -- J. Crew was starting to retrain me to buy items I wanted at an earlier point due to the shipping fiasco. I waited on a lot of items, because based on my little inventory of them, there were plenty left in stock. But then the phone orders apparently started piling up before web orders were processed, and a lot of the items I thought I would receive were cancelled from my orders (and subsequently sold out).

    I'm trying to take a break from J. Crew for a while (I have more than enough clothing to last me for the next decade), but I do find myself weighing which items I would pay full price for, and which I would be willing to risk not receiving if I waited for them to go on sale.

    Regarding the lower price points, it's nice to see J. Crew reducing the prices of certain items, but it seems they're not doing it across the board. For instance, the Grenada cami is $228, which seems insane for a cami. And it doesn't seem any different to me than the giraffe cami, which is priced over $100 less at $110. They both have the same cut and are both made of silk. I think that if J. Crew is going to charge more for an item, it had better be prepared to explain to the consumer why it costs so much more than similar items. Otherwise, shoppers like me are going to continue waiting for sales.

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  21. Drexler's comments are interesting, given J.Crew's position throughout most of 2008--if you want luxury, you have to pay (along with the tightening of codes, attempted strict application of policy, etc.). I remember reading a lot of contributors last summer talking about how the offering luxury at a reasonable price point would be a more effective strategy given the increasingly frightening financial climate. It's a bit of a turn-around. I hate to say we told him so...

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  22. We will not see the sales like the ones prior to Christmas, that was only due to their high inventory levels. I read that retailers have been cancelling their Spring orders by up to 25%, I wonder if J Crew has?

    J Crew has lowered some prices Cashmere Tee is now $98.00 from $118.00 not on promo, and I wonder if that tee will be further reduced except for the clearance sale at the end of the season?

    The prices do not match their quality on most items they needed to come down.

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  23. I would also like to add that if I truly love an item I will pay fp, but I will try to hold for a promo. Once you hit the sale stage who run into problems with the website, and then it is not worth it.

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  24. I agree with Anon 1:34
    I too am worried about their quality. I have several pair of shoes from JC that I bought 4 years ago, thay are all made in Italy and are excellent quality. If I am going to buy shoes made in China I might as well buy from Target for $24.99, they will last just as long.

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  25. I hear you on the quality. I've shopped at the Crew now for more than 14 years. Prices have completely skyrocketed, and quality is much lower than it used to be. The prices need to come down if they want us to keep coming back. I'd ask for quality to go up but then I'd be going too far!

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  26. I think it is a much-needed adjustment for JCrew. Admittedly, their margins have been up. I'm sure you all know, but that means the actual profit made on each piece has been up. And sales have slowed. Seems like a natural realignment to me.

    I've never purchased the ballet flats. Is there any support at all in the footbed? Do they stretch out at all?

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  27. Jeff - I noticed the price adjustments as well. The Glenbrae boots were $325 originally. Now they are down to $250, although not marked as sale.

    Jeff - in another post you mentioned the peacoat did not fit well. The mens peacoat seems scarce this season, although had not been discounted. I am stalking it for my husband.

    Can you tell me more about what you didn't/did like about the peacoat this year?

    TIA

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  28. Anon @ 1:34 - they are already manufacturing their shoes in China. Some are still made in Italy, but a pair of driving mocs I purchased were listed on the website as made in Italy but the mocs are stamped "made in China". I was not impressed.

    JCrew quality has definitely gone downhill and it is terribly inconsistent, like the sizing. I think a lot of people will be forced to restrain their spending so it better be good and it better be reasonable if you want to sell a lot.

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  29. Anon 7:46 I agree that if they are consistently marking down items in order to sell, their margins are too high! Welcome back to reality, JCrew.

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  30. Well, resetting the price points will absolutely not work for me. what can I say, other than I'm a dyed in the wool, bargain shopper? I love clothes, and I'm a big J. Crew fan and have been for years but I only buy when I can get a good deal. I'm in a position now where there are certain things I HAVE to buy at full price, i. e. diapers, gas, so things like a 35th merino cardi is not a necessary object. To consider a piece a good deal, I check what the full price was, and how much I've paid for like items, and if it's more than half off the original price I'm happy. If things are cheaper to begin with I'm likely to want to see sale prices that are lower as well, but that is just a want. As long as the final price I pay isn't higher for similar items, I won't be upset or put myself under a shopping ban. To put it bluntly, if any item is too expensive I won't buy it.

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  31. J.Crew's shoes are not well made, so they most definitely should have a low price point - the flats have zero support/padding, so I wouldn't even dream of spending $100 on a pair.

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  32. Interesting. They are definitely overpriced, especially for the quality. However, I will still continue to only buy on sale.

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  33. I confess I am a diehard bargain shopper. No matter what the product, I wait for a good sale price before I buy. I dont buy at fp unless it is for a special event. And for kids, there is no way I would pay for fp when they grow out of clothes so quickly.

    I love quality of JCrew, RL, etc, but I wait till they are on sale. And there are always good sales a few months after the lines are released.

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  34. OT, but shoe related!

    The Columbus Circle B&M had really cute new solid suede flats and heels in softer tones. Slightly rounded pointy toe and no piping like on the Jane. (Flats were $138, btw.) They already didn't have my size in the color I wanted (a soft grey), but they're not online!!! Do some stores get merch before it hits the website? Is this normal at the start of a new season?

    Thanks! -Anonymous Liz

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  35. Interesting he chose shoes to comment on in the article. Their shoes are grossly overpriced and IMO the ballet flats are still overpriced.
    I have said it before..I don't know where the Hell in "Italy" these shoes are being made but the shlocky craftsmanship seen on their shoes is not the same Italy I have grown accustomed to spending my money on. I have spent J Crew's full retail price on real Italian made shoes from other brands because the quality is so obviously there and I have worn them for years. I mean, take a close up peek at Carmen item 11333 retail $275 and sale $190--their picture speaks a thousand words. Nice plastic sole and warped heel with an ill fitting (creased) fabric wrapped around it.

    I am embarrassed to say I have bought some of their shoes for $170~I love the looks but the quality is awful. This is one area where the sale price is all they are worth and IMO retail prices still need to come down.
    Sometimes due to the super cute factor..one cannot pay what they are really worth because once on sale at all...they are gone. This is all that keeps them selling shoes IMO...the super cute factor.

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  36. I remember reading a few months ago that J Crew inventory levels would be high until mid-2009 ( I assume this means that the merchandise had already been ordered/produced and it was too late to readjust levels to reflect the current economic environment) so they may have decided to lower prices to at the start and perhaps they will offer more private/secret type sales to attempt to restore their image of being a full priced retailer. ( I actually prefer the 20-30% off coupons over waiting for the prices to be marked down, so I am least hoping this is the case.)

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  37. Sort of OT, I am surprised there are no further markdowns in the FS section today. I am accustomed to seeing further markdowns after a promotion ends (i.e. the free ship on 150+). There are still a lot of cashmere sweaters etc for over $100 which I will not pay so late in the season.

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  38. My mom taught me to always look for sales. Growing up in America has its advantages and disadvantages. One of the disadvantages is most of the people want things when they want it, no matter what it costs. Retail targets those kind of people. They know that some people won't be able to resist having the latest jacket(or whatever the case may be), so they mark up the price. People who are willing to wait will usually get a better deal. I say usually because sometimes your size might get gone, but more often than not, the stores may you THINK they only have so many of a certain item. What you want is probably still there, it just might be pushed to the back of the rack. I love it when there's an extra 40% off sign on something that was full price a month ago. It's worth the wait!

    P.S Stores have been offering bargains all along, people just had to be willing to look a little harder for them! Although I will say the stores have been offering some GREAT deals lately because of the economy.

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  39. It's a psychological thing for me...full price is still full price, and there's a certain satisfaction I get from snagging a good deal. I appreciate j.crew lowering their full price starting points, but I hope this doesn't mean fewer promotions.

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  40. Holy cow bugpin!! That shoe looks terrible. Nice catch, BTW.

    I agree that the quality of shoes and boots has realy slid and I haven't purchased any this year for that reason. It's not difficult to find Italian-made footwear from other retailers. I am still wearing a pair of leather 3" heel boots I bought from JCrew about 5 years ago. Made in Italy and well made at that.

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  41. Interesting- but China is hurting big time-there was an article in the New York Times this past week about all the factories closing-so their costs will be dramatically lower. Also, many retailers can do much better with their commercial lease pricing. JCrew should be able to keep opening pricing lower, and still offer sales. I'm sure like everyone else, they can do wage freezes too.
    As far as paying full prices, some items I like do go, but I forget about them. I bought a few things FP this past season, but most of what I purchased was on sale with free shipping, or in the stores with much greater savings than online.

    I think quality is going downhill in all stores. It's really a throw away world, in apparel, electronics etc. I think the prices need to reflect that. My really old Ann Taylor cashmere is looking better than my 2 year old JCrew cashmere. A find a lot of JCrew pills, but it is a softer, loftier yarn, so that may be part of it.

    I need to see where my raise, taxes and bonus are going this year, even though I have a secure job. I just am a little conservative and things like another sweater or pair of shoes will have to wait unless it's a really amazing deal. And I feel like I need to save more "just in case."
    This is a bit off topic, but
    nother thing that gripes me was that it seemed like they gave everyone a 25% off coupon and 10% off for giving their email addresses, but I was never given either. I probably spent at least 1500 in late November, early December, and had purchased a bunch of stuff in October as well. My husband also spent around $500. All I got was a bunch of "thank you" notes. It's upsetting to a customer who's been spending a few hundred a week to be standing in line and everyone else has the coupon you do not have. TI might be a little childish, but it makes me wait for a better deal as well.

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  42. Liz,
    I work for J.Crew, and I can say that we often put items out before they are updated online, but it could also be an in store only item. I think your best bet would be asking an associate to do a "we'll find it for you", They can track them down in another store for you.

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  43. Anonymous at 11:29 AM,
    We are required to give out the promotions but some associates are lazy. As a customer, I would want to know every discount that is offered to me, and so I make sure to let them know. In this economy the thank you notes are nice, but they simply aren't enough. I think for anyone to continue shopping consistently in this economy it will be in sales. I know that they're are alot of impulse buys and we have plenty of customers who still don't look at price tags, can you imagine!?!, but for the most of us it is only practical to wait.
    Sorry your associates were less than stellar.
    -Sara

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  44. Bug pin-
    I never really paid much attention to the Carmen's until you pointed them out. They are awful! The sad thing is that they remind me of my HG Lulu's. On one my Lulu's the leather is not wrapped around the heel properly. I would have returned them but I bought them during the 50% FS a few months ago and I only paid about $40. I would never ever buy a pair of J Crew shoes at full price- simply not worth it!

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  45. Sara-
    I must say, most, if not all of the associates are great! I also had good service with the online customer service people. I think it's a corporate decision to send out coupons to only certain customers. Perhaps I need to get the card. At least my husband got the 10% off a day after I asked and was told they were no longer doing it.

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  46. I think this might work for certain items. If I really like something and it is under $100, I am more likely to pay full price. I did look at some of the new arrivals and they didn't lower the price point for everything. The bathing suits seem more expensive and the cheapest option was $76 for a plain bikini. No, thanks!

    I agree with other posters that we are used to promotions so it will be harder to get us to pay full price. I have a cart full of items but will not buy without a percentage off the sale price. I just refuse to pay more for something now that I would have before Christmas.

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  47. Anon @ 11:29 - agreed.

    If anyone thinks that they can get Italian milled fibers made into Italian assembled clothes for the prices that JCrew sells its items, then he or she is living in the 1980s and 1990s. MOST items are produced, manufactured or assembled in China now, including your Japanese electronics.

    By the way, back in the 1970s and 1980s, some of the highest quality cashmere, knits and tailored clothes came from Hong Kong. True HK is not mainland China, but guess what - it's in China, not Continental Europe.

    The real problem is that this is truly a "throw away world" as Anon @ 11:29 has pointed out.

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  48. I think I am trained to thing more $$ = better quality. And I feel like I am getting a "good deal" when a $$ item goes on sale.

    So I'd feel better about getting $169 shoes for $79.99 than paying $98 for shoes right out the door.

    I am embarassed to admit this -- it's silly of me -- but I imagine a lower price point will = a lower product, and I don't find that appealing.

    I used to find awesome shoes at (of all places) Talbots. Great construction, leather soles, made in Italy, adorable flats, and ... always available on sale if I was patient.

    They started the lower price point thing a few years ago. The quality TOTALLY changed. I have no interest in the shoes now. Lots more plastic, rubber, cheap leather, etc.

    You know --- Ann Taylor also did this fiarly recently. I dropped in to peruse thier footwear last week and it was SO much nicer a few years back.

    So ... I hope that the lower price point does not correspond with cheaper materials/construction. I'd rather wait for sales!!! Or spluge less frequently.

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  49. Bug pin,

    Item #11333 confirms my fears.

    What a nightmare RE the construction.

    It cheapens the whole "made in Italy" cache.

    Anna

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  50. Factories are closing in China and labourers are protesting because they are now out of a job and cannot go back to their farms because the farms no longer exist. It is going to get ugly out there on so many fronts. Not to be so negative but the US has been fueling China's exports and people are cutting back heavily already out of necessity and reality. Other countries of course bought cheap Chinese exports too, but the crunch in the US had the quickest and deepest impact so far. The throwaway culture is going to change whether we like it or not.

    I've always been one who prefers to buy fewer quality clothing and footwear that fits with my current and future wardrobe plans, rather than have a multitude of cheap items. That includes buying multiples just because they are on sale. I don't need a "perfect" item in 5 colors every season. I'm not bashing people for getting a deal, it is always nice to save money, but when you buy as many as possible when it is as cheap as possible and end up with never-worn items - well, that doesn't support a retail strategy to deliver quality goods at a reasonable price now, does it? It's obvious JCrew is trying to deliver on the cheap as some JCAs have commented, a lot of product is of poor or even defective quality this year, but was shipped out just the same.

    Hopefully JCrew will improve their quality and realistically adjust prices this year. I have been purchasing from them for over 10 years and I will continue to do so if they continue to offer quality items. I truly believe that it will be necessary for successful retailers to go back to the idea of customers buying clothes to last. It would be wonderful if they were also made in the USA like several of my old JCrew suits and coats. Too much to hope for? We'll see, I guess.

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  51. I would actually start buying jcrew jeans again if they came back down into the $58-78 price range. I still feel that jcrew's quality in general hasn't improved with the higher prices (collection items have gotten better, but that doesn't justify higher prices on everything else).

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  52. This comment has been removed by the author.

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  53. Yes-and I even failed to mention all the glue one can actually see around the edges of the sole meets fabric--it is beyond shoddy.

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  54. ^ no kidding! Look at all the glue. What a mess. Original price at $275 and "made in Italy". I doubt that it is really made in Italy. Like Anon @ 7:56, I also purchased shoes from JCrew that were listed as "made in Italy" but came stamped with "made in China" on the shoes. I complained to JCrew and they said it was a mistake on the website and sent me a free shipping code for my next order.

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  55. The only footwear I purchased from JCrew this year were the Chalet shearling boots. They are made in Italy and the quality is superb. The boot is lined with shearling on the shaft but the foot and sole are lined in nubuck. There is arch support and the foot lining is pieced together, like the outside of most shoes, then stitched in as part of the boot, a sign of quality construction and not just gluing things into place an hope they hold.

    I just didn't think the rest of the footwear was worth the price as it looked cheap to me. I also would rather have one nice pair of shoes that will last, rather than several that look ratty and don't hold up. I think I'll call and ask the CS to check the actual footwear to see where it's made, if I plan to buy again in the future.

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  56. I'm glad to see that JC is not too proud to adjust their prices. As we've all discussed, now is not the time to be stubborn and massively over-priced. I think offering some high priced specialty items and reasonably priced basics is a good strategy.

    $98 for JC flats seems reasonable to me. I'll pay about $100 for style and color but I won't pay much more than that unless there is true quality, i.e. all leather.

    I don't think we will see the continuation of the massive pre-xmas sales. I'm hoping to see at least a 20% off soon but if the things in my cart get low in stock, I'll suck it up and pay full price. Last year I bought too much sale stuff I didn't need. For me it's better to pay more for less items that I truly love. Either way, I spend the same amount of money total.

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  57. Since bug pin brought up the Carmen shoe, did anyone notice that the plain satin ones (item # 11335) in the light flamingo color are dirty? I noticed this when they first came out but I thought I was being too nitt-picky so I didn't say anything..does anyone else see this? correct me if I'm wrong

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  58. Monica - ROFLMAO

    That is just ridiculous. How can JC even pretend to be producing quality if the items selected for the photo shoots are showing up as crap or dirty. I do not want to know where the dirt came from on those shoes. ick!

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  59. TIA: Hi, I thought that the coat was just way too spacey. I ordered a small & there was too much room around the shoulders & throughout the arm. The body of the coat is not fitted, but boxy. You basically look like a lampshade with the coat on. One good point though is that it is quite warm, but don't expect to be able to maneuver much in it. The fabric is stiff. Honestly, it felt like carpeting.

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  60. Thanks Jeff - have you seen the coat in previous years and does this seem lower quality? would you recommend waiting for the winter 2009 version?

    Based on your description, it just doesn't sound worth it. I like the soft JCrew coats of years past.

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  61. It has been written in an article before that Mickey will ask his SA's if the customers are complaining about the prices in order to gauge how much he can raise them. Now it looks as if perhaps customers have been complaining about and refusing to pay the higher prices, so he has no choice but to lower them in order to survive in the current economic climate. It's either lower price points and hope to sell more merchandise at full retail, or become a *sale* store, which he doesn't want to do, because he feels that sales cheapen the brand.

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  64. Anon @ 2:55: I would not wait for this year's version of the Authentic Peacoat. Why? Because there is little possibility that there would be another version. A friend of mine had purchased the coat in 2007. It's the same cut & fit as the one in 2008. I suggest you find an alternative. I found Ralph Lauren's to be a much better fit. It too has the anchor buttons that JC's has. Currently, it's on sale for $299.99. Here's the link.

    Click Here

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  65. Anna B.

    Wow, I don't agree or think like that at all...price has nothing to do with it...I look for quality made garments. And that doesn't matter if it is Wal-mart of JCrew or whatever...it is all made in China and I have a best friend whose aunt works in the clothing industry and has let me know so...most garments are labeled as $4, $3 or $2 to make and then the designer labels are sewn in...for the $4 garment, $3 for JCrew/mid price and $2 ones stay in the country...

    Higher price does not mean higher quality. Period.

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  66. Anna B-I am the same way with price. I think J Crew has shelled it out to us that way as well. Shoes that were $198 but now I am paying $90 with a promo and it feels "o-kay" but I bet if I walked in the store, I wouldn't pay the $90 right then. I would wait for them to go on sale for $60..I follow that thinking with you..right or wrong. Brain--trained/washed.

    Monica and Anon-many have mentioned on this blog over time the various nasty marks, dirt etc. in the product photos...esp. the shoes. Why on earth they would choose the dirty product to photograph is beyond anyone's imagination. Strange.

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  67. Not sure that was clear. My example, if I walked in the store right now and a shoe was brand new for Spring at full price $90, I would wait for a sale or promo before buying. Perhaps the same shoe that retails at $198 and I am willing to pay $90 with a promo. Interesting isn't it? No wonder there is so much market research about consumer thinking:)

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  68. The light flamingo Carmen definitely has blackish smudges on it. I guess QC has gone downhill all the way around at J. Crew. :(

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  69. Even a year ago, I was willing to pay FP at J.Crew because those prices were reasonable. Now they've become so stratospherically ridiculous (case in point: the "art deco" brown & yellow silk dress, which was priced at $350 and now sells for $60) that I usually don't even bother looking at the FP items in stores, heading instead directly to the sales racks.

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  70. Anna B:

    I find my shoes at Talbots too! I find that in general, for the price you pay, the shoes are really good quality -- and they have it in my size too. The quality of Talbots shoes beat J.Crew's anyday, and most of them are made in either Brazil or Spain.

    I'm a huge fan on their ballet flats which I think are super elegant and classic.

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  71. Everyone: Thank you so much for sharing your views on this particular topic. I loved reading everyone's take on this- from what J.Crew's future strategy should be to what our shopping habits are in regards to their current strategy. :) Loves it!

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  72. Jeff - thanks for the RL link. The coat looks nice. I know my husband wanted the one with Thinsulate lining and he wanted black - of course, something I cannot provide. I'll have him look at the RL jacket. I have a number of RL coats and he does like them so here's hoping.

    I still laugh at the lampshade comment. Oh, and the Trilby hat/boxers comment from NYE. U funny.

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  73. Amanda-

    Are you still having luck at Talbots? I swear - I would find the best shoes there - and the last year or so has been less thrilling. A lot more synthetic soles (my pet peeve).

    I agree though - when they get it right, the quality for the price is super! I also used to find cute bags there and, occasionally, costume jewelry.

    The clothing never fits me, I must be the excact opposite of their fit model.

    I will give them another try this weekend.

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  74. Thank you SO MUCH for the Talbots tip, ladies! I think J. Crew's shoes are mostly adorable, but they're also anything but neutral and are priced way too high for how often I would wear them! Not to mention, I can't wear ballet flats (they make me look stubby) and the ubiquitous peep-toe is not appropriate for my profession. I have been dying for some shoe inspiration--just some versatile, well-made, ladylike shoes--I think I just found plenty through Talbots.

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Dear J.Crew Aficionadas & Aficionados: Please feel free (and encouraged) to share your thoughts and opinions. :) However, please note that this is still a personal blog. So comments that are considered inappropriate (e.g. obscene, racist, homophobic, personal attacks, rude, and just plain mean) will be removed.

And now back to J.Crew! :)