I couldn't agree more with the last line. Thanks to blogs (like those listed on the JCA Blog Roll Call) and product reviews on company e-commerce sites (like Anthropologie), I always do a bit of research before any purchase online.J.Crew CEO: Retailers Have Come Back, Not Consumers
By Christina Cheddar Berk
April 8, 2010
A record jump in monthly retail sales has some cheering the comeback of the consumer, but J.Crew CEO Millard "Mickey" Drexler isn't impressed. "I don't talk about the comeback of the consumer," Drexler told CNBC in an interview. "...I talk about the comeback of great retailers, or of good retailers."
According to Thomson Reuters, retail same-store sales rose 9.1 percent in March, the biggest gain since the company began tracking those numbers in 2000.
Drexler said he doesn't think last month's sales are as good as they first appear. He explained that March 2009 was "the easiest month in the history of the retail world" to compete against, as sales were depressed last year by the "tsunami recession." The timing of Easter, which occurred a week earlier this year than last, also helped bolster results. "We look at 20 retail companies in our industry, and there is just a handful that are ahead on a two-year basis," Drexler said.
Like a growing number of retailers, Drexler's company doesn't report monthly same-store sales. However, under Drexler's leadership, J.Crew [JCG 46.75 -0.10 (-0.21%) ] has improved its performance. Last month, the retailer swung into the black in its fiscal fourth quarter and posted full-year earnings that surpassed pre-recession levels.
Drexler said the key to J. Crew's success has been to sell items that "cannot be sold anyplace else." According to Drexler, retail sales are improving not because the consumer is coming back, but because those retailers are taking market share from others.
"The consumer either shops value, or they shop emotionally, or it's both," he said. He also thinks the Internet has made competition more fierce because consumers research prices and know a product's true value.
Also, I laughed a bit at the line that "the consumer either shops value, or they shop emotionally, or it's both". Doesn't that cover about everyone? ;)
What are your thoughts on the article & video? Disagree or agree with any of the points mentioned? Do you think customers shop either on value, emotionally, or both? :)
What about shopping for actual NEED!
ReplyDeleteLOL! Genny that is a great point!!! :)
ReplyDeleteItems that can't be sold anywhere else. Like Tretorn, Converse, Schleich, Essie, Belstaff, and the other like thirty brands in the "J. Crew in good company" section.
ReplyDeleteSorry for posting without watching the video, but from the quotes, it sounds like the most sensible thing he mentions is consumers being more informed because of the internet. I really wish JC would get on the review feature bandwagon! Anthro's gotten much more of my clothing budget and many, many less returns from me because of the reviews.
I'm sorry but.... I cannot stand Mickey D.
ReplyDelete"People cannot find items like J Crew".....ummm I hate to break to you Mickey but I can can go to Ann Taylor, Banana Republic and find the same exact items at a cheaper price and BETTER quality.
I do like J Crew.....but their 15 minutes is just about up!!
CheesyGoodness: I think J.Crew is scared of allowing a review feature on their website! Commenters on this blog have mentioned the declining quality of certain items (i.e cashmere) and I think JC avoids the review feature so that word doesn't get out further :) It sure would be helpful, though!
ReplyDeleteI agree with App Gal; I think that JC is (and ought to be) nervous about having a review function. Perhaps Anthro is more comfortable doing this because it offers a number of different labels, whereas a bad review for a JC item could be perceived as reflecting negatively on the whole JC line? Just a theory.
ReplyDeleteReviews--good and bad--are why I looove JCA. Thanks to JCAs I have purchased a lot of items I wouldn't have otherwise considered, and I've been able to steer away from some mistakes as well.
Cocky bastard, isn't he? Taking over other's market share? Um, it's called scaling back in inventory, pricing it higher, FINAL SALE, FINAL SALE, FINAL SALE. Look around J.Crew, your stuff all looks the same.
ReplyDeleteI agree that JCrew's selection of goods is becoming like other stores selection--they are becoming more trendy and do not stand out as much as they used to in my book. Many similar items can be found for much less at other stores. To name just one: I still love JCrew but come on...Remember how Target did the exact orange/blue/white print last summer!!!
ReplyDeleteI still love J.Crew and depend on them for basics and classic pieces (and I don't mind the price for them) But when it comes to trendy items, I feel J.Crew is too expensive for something that might not be in my closet next year.
ReplyDeleteI don't think J.Crew would have done this well if Michelle Obama had not worn their clothes and brought attention to the brand.
ReplyDeleteI agree with Appgal it would be nice however to read reviews on the sizing.
ReplyDeleteI would also love to see a review feature, but implementing that would probably tank jcrew.com for another year! ;)
ReplyDeleteIn reading the reviews at Gap/ON/BR I've noticed how all over the place both sizing and quality seem to be. I wonder if the review feature has affected their bottom line.
AppGal, you're so right, they seem to want to keep the mini-couture facade going and reader reviews might just torpedo that!
ReplyDelete