Friday, August 19, 2011

Dear J.Crew, Stop Double Charging International Customers

"Thanks!" to Alexandra from the U.K. who had the following to share:
So J Crew have started shipping to the UK and Canada! It is now a bit clearer about how they are doing it. I have made some observations below.

Good news: UK customers can get direct shipments from the main site: all the same things as US customers including petites, bridal, shoes, etc.
Bad news: Prices are in UK pounds. And the exchange rates the site uses to convert from US prices are really REALLY terrible: today it was 1.09 dollars to the pound. That compares to today's market rate of about 1.65, and the 1.61 rate that UK customs uses.
Bad news: UK customers can only pay by Visa and Mastercard. Not American Express (unlike the US customers).

Good news: the site calculates and charges UK customs duty and tax upfront. So you know precisely what you are in for when you order.
Bad news: because the UK prices are so high, customs duty is triggered on many items (anything over £140 in value).

Good news: There is only one shipping method available: flat rate 1-2 week international shipping to the UK for only £9.95, or about $15. That compares to the average $40 I pay for 2 day Fedex shipping at the moment via my mail forwarder.
Bad news: All parcels are sent by DHL: in my experience the slowest and least reliable transtlantic carrier.

Just to give you a couple of examples to illustrate what all this means: a Taryn wedding dress would cost $598 to a customer living in Florida, including all taxes and shipping. The same dress would cost a staggering US$1071 (£650) to a UK customer if shipped direct! A pair of classic leather ballet flats - which are cheap enough to come in below the customs duty threshold - will cost a US customer $128.27 - but a UK customer will pay $211 (£128).

My conclusion from all this is that J Crew's e-commerce partner is using an appalling dollar-pound exchange rate to subsidise its (quite slow) flat rate shipping. This means that the price points are very high and even worse, a lot of parcels will wind up as worth over £140 and trigger customs duty, which is a disaster.

Please please do the math before you choose the direct shipment option to the UK. By my calculations, it will always be quicker and nearly always cheaper to do this instead: order from the US website, pay US tax and shipping, get it delivered to a US friend or mail forwarder, then get it sent onto the UK via Fedex (ideally in parcels worth $200 or less), and pay the UK tax!!!!

Shipment example under $200 value: Classic ballet flats direct from J Crew to UK: $211. Same flats via US mail forwarder: $199 ($128 incl US tax and shipping + $35 Fedex+ $36 UK Vat and handling fee)
Shipment example over $200 value: Taryn dress direct from J Crew to UK: $1071. Same dress via US mail forwarder: $803 ($598 incl US tax and US shipping + $40 Fedex + $155 UK vat and duty and handling fee)
So in the end, J.Crew has really hiked up the prices for international shoppers! Just read the comments in the "J.Crew Opens its Doors in Toronto" & "J.Crew Updates Website with New Arrivals!" posts and you can find a lot of heated words over this topic.

There are lots of posts on other blogs about this too, including:
Well, I am going to add my two cents... Although this change does not impact me directly, I find it really discouraging that they would charge significantly higher prices for international shoppers, in addition to duty and tax! (Charging fair rate prices based on a reasonable conversion is one thing, what J.Crew is doing... well, it doesn't appear to be that way. It appears like a 30-50% markup.)

Right now, it is unclear why they need to “double charge” international customers. J.Crew claims it is "the cost of doing business internationally". Well that line does not sit well with me. Especially since J.Crew was selling the same merchandise just one week ago in Canada without the extra costs.

J.Crew's CEO, Mickey Drexler, always talks about the importance of taking care of its customers. We have seen it first hand from the special gifts to excellent service from Personal Shoppers. It's one of the main reasons why I love them. So I hope J.Crew will quickly reconsider the ridiculous double charge. Keeping the double charge will only drive loyal {international} customers away.

90 comments:

  1. What a scam. They make an effort to appeal to Canadian customers more directly and at the same time jack up the prices! It was cheaper buying from them a week ago!

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  2. As I said in my post at DelectablyChic!,the Canadian prices are VERY misleading. We are NOT being charged $9.95 flat for shipping. A certain percentage (I don't know what it is. Didn't bother with the math, but I think it's about 80%) of the shipping costs are jacked up with the base price. I want them to be more up front with what the jacked up prices mean. When I see Canadian prices, I automatically think that duty has been applied.

    I have written to Mickey and Jenna about this and hopefully they'll get back to me. According to my read receipt, Jenna has "read" my email.

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  3. I am so glad that you've written about this since I have sent J.Crew customer service and called them to talk to them about this.

    I'm from Canada and not only are they charging a higher price on all of their items, they're not even charging in Canadian dollars! It's still American dollars! Then, on top of that, we still pay the hefty customs and sales taxes. It makes no sense to raise our pricing especially if 1) they're not even charging CAD - it's like if I went to the United States, went into a store, and they charged me more just because I'm a Canadian. It doesn't happen in real life -- I pay the same that an American would. This is highway robbery. 2) The Canadian dollar and American dollar are practically at parity -- why a $10-20 increase on items anyway? This is ridiculous.

    I love J.Crew's clothing and style, but the way they're treating their international customers is just ridiculous and unacceptable. I'm refusing to shop online until they get their act together. If I knew this change was happening, I would've bought everything last week when this hadn't happened yet.

    Let's hope they'll read this post and get the idea that we're pissed off.

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  4. Also, I'm even more pissed just because I *have* to shop only from J.Crew's website since I require petite sizing that they don't offer in-store anywhere. Good job, J.Crew -- open one Toronto store, and alienate all Canadians from buying from the larger pool of sales -- i.e., the online storefront.

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  5. Thanks for the shout out Alexis! This is certainly a hot topic here and on the other JCA blogs. I am really REALLY hoping DL will get this resolved and CORRECTED ASAP! I've simmered down a bit since yesterday, but you should have heard me when I read about the mock check out prices! My BF had to ask me "What's wrong?!?" LOL

    @Fong: you are so right! I need petite sizes too! Urgh!!

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  6. Thanks for posting about this Alexis, it's nice to know we have some support! We need to keep on questioning them about this and hopefully we can, at the very least, go back to ordering from the US site like we could last week.

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  8. Awh that's a bummer on the prices since some of the items are steep to begin with. I just can't imagine paying double!
    Eeeeeek!!!!!!

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  9. J Crew ... I've put up with rising prices, recent awful catalog-styling and occasional terrible CS experiences but with this stupid "international" pricing model, you have just completely alienated this loyal Canadian customer!

    I usually just lurk on this blog but I felt the need to de-lurk and join in the voices of fellow Canadian customers.

    Yes, opening a few Cdn stores will bring in new customers but sooner or later, the novelty factor will wear off. Please rethink this very silly marketing strategy that you have implemented

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  10. Alexis, thanks so much for the post. I'm hopeful that this situation truly is a glitch and just start-up pains.

    Not too sure why after years of selling to us in Canada things had to change and change for the worse. BR does things differently and much more reasonably.

    Since BR began shipping to Canada my J.Crew shopping has slipped and almost always to sale items. Don't get me wrong, 'crew is still my girl, but she's getting a little too pricey and we don't go out as often.

    Here's hoping she'll come around and we can go out more often.

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  11. Kudos Alexis!

    I mean i really love J crew and my closet is basically like walking into one of their stores but this is the last straw!

    I have people stop me all the time either on the street or by my best friends saying "oooh! Where'd you get thattt???" And i used to say J Crew!and then they'd say "oh they actually ship to Canada!" and i'd go on about their intermittent free shipping and promos....but now i'm going to tell them still J crew but what rip off artists they've become!

    In my books they offically have a month to turn this side show around or i'm cancelling my account and deleting the website from my bookmarks - out of site, out of mind!

    Oh Mickey you're not sooo fine!
    Oh Mickey you act like slime!
    Hey Mickey (huff huff) Hey Mickey!

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  12. I have emailed them too, it's ridiculous not to use the going exchange rate! I compared the price of buying a garment on Net a Porter UK with buying it directly from J Crew - almost £100 increase - that is utter insanity.
    Unfortunately I don't really like Net a Porter's edit.

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  14. Thanks so much for posting about this. I'm from Canada and have been shopping from the j crew site for years! I always loved how j crew was so fair and would apply free shipping and discount codes for Canadian orders, something that not all websites do. But all that's changed now.
    I was so mad yesterday when I first visited the site and figured out the double charge! I had been expecting some price changes as the catalogues kept on warning me that U.S. pricing would only be effective until Aug. 18, but I assumed that the price changes meant that we wouldn't be charged duties! The new Canadian pricing will really have a negative impact on the amount of purchases I make from now on.

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  15. Alexis thank-you so much for writing about this, JC is even jacked up prices on made in USA items which are duty free.

    There is a cost of doing business in Canada our good old Canadian government surcharges the American stores bringing items into Canada, we as a consumer has to pay some of that but not to the levels JC are charging us now.

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  16. Thank you Alexis - for this post for we Canadians and the UK folks.

    I, too, have written to JCrew and Mickey and Jenna. I truly hope they change this - I had so many things in my shopping cart which have now been dumped. So sad, as this was such a lovely roll-out!

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  17. Hi Alexis,
    Thanks so much for mentioning my post.
    My Fall Picks are torturous as there won't be any ordering for me! I thought it was a great Fall roll-out too.
    I've got to protest with my wallet. I could ship to a friend in the US but then I'm not really making any point, as consumers our only power is where we spend our money.
    Let's hope JCrew has a look at their charges and reconsiders this treatment of so many loyal customers.

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  18. Thank you for posting this Alexis! I have been so upset about this and emailed previously as well. I got the 'cost of doing business' reply.

    I was already thinking of Christmas shopping, normally everyone in the family gets JCrew for Christmas but not this year with these ridiculous charges. I'm still in shock that after years of ordering online this has happened because of JCrew's arrival with one store in Canada.

    Excitement for the arrival has turned to bitter disappointment.

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  19. thanks for posting this and doing the math - i couldnt figure out anywhere on the website what rate they were referencing. i had hoped they learned from the BR experience of opening in the UK - too expensive and lots of sales because customers aren't stupid - but clearly not. having been eagerly anticipating shipping to the uk, theyve now lost a customer. what a poor effort.

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  20. Like DaniBP, I am protesting with my wallet. It was questionable in the past but the quality of the clothes are definitely not worth the higher prices now. I didn't buy a ton of merch but most of what I bought was at full price because I plan my wardrobe and prefer to avoid the impulse purchases that sales inspire. I'm not going to become a J.Crew sale shopper and fall into that trap. I will continue to plan my wardrobe and shop elsewhere. It may not be as easy as a few clicks from home but I could use more time away from the computer anyway.

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  21. I wanted to mention that when reading the posts the other day, I was a bit surprised just how many JCAs were "outed" as Canadians. I'm impressed at the following you have built up over the years Alexis. J.Crew could take a lesson from you on how to inspire loyalty through consistent and fair practices.

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  22. Has anyone in Canada tried to buy from the US site? Like can we still do that or does it automatically change to the CND site when going through the shopping cart procedure?

    First the online catalogue, now this? J. Crew obviously doesn't want CND and UK customers!

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  23. "That’s so important — that people feel that they’re getting value and quality out of something and not just style. I think everyone works really hard — we know what it means to part with your cash and want you to feel good about what you’ve bought."
    - Jenna Lyons, The National Post (Canada), August 19
    Ironic that Jenna is out loyally doing the PR rounds while we JCAs are in revolt over a abysmal e-commerce move. Thanks Alexis and all our compatriots south of the border for the posts and support. I did get to Yorkdale Thursday, but will be headed back there this weekend to make my first-ever B&M return. No more online or cross-border JC shopping for me either.

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  24. @Tiny Dancer -- If you shop on the American site, you can only ship your order to the States. You can't choose any other country to ship to.

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  25. You honestly have to wonder if this is J.Crew's way, at least one of them, of recouping some of the cost of the significantly rising cotton prices. From what I have been hearing, clothing manufacturers have 2 choices, lower quality or raise prices. That is if they want the same profits they have been making in previous years. I have already seen a decline in quality in many of the items I buy from J.Crew so I know they are at least taking the lower quality route on some of their items. Maybe they are taking a double pronged approach. Lower the quality on some items while charging significantly higher prices to international customers. I may be way off but you certainly have to give it some thought. What other reason would they have to raise prices so significantly for overseas customers? Yes, it does cost more to ship overseas but that doesn't even begin to account for a 50-60% rise in price. Just my 2 cents.

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  26. There's a huge ad in The Globe and Mail this morning for JCrew, not just the Toronto store but for their "biggest store in the world" JCrew.com, which got me to thinking.
    Perhaps they are willing to lose their past Canadian customers who are surely going to notice the price increases by gaining many Canadians who have never shopped JCrew.com before. They'll log on and see it looking all Canadian-flaggy and whatnot, and think that it is a friendly, safe shopping environment. Maybe not even realizing they are being gouged with these marked up rices and then duty /brokerage slapped on as well.
    I did a mock check out on my last order, exact items, and the end result now would be $260 on top of the order. Wow!

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  27. It's nice to see discussion about this. The math is making my head spin. If I lived in Canada, I'd stop rowing for the Crew, too. The downgraded quality and other issues don't warrant even higher prices for anyone. Hopefully J Crew will read the free focus groups they have access to here and make changes accordingly.

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  28. This pretty much spells the end of my J. Crew shopping. With the price hike, many of the items I was looking at are now at the same price point as designer lines which are better quality. I hope they change their policy otherwise they are losing a very longtime J. Crew customer! (And it sounds like I am not the only one!)

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  29. Ditto to the posts above. I have written to JCrew that they have lost me as a longtime, loyal customer. I am a US citizen living for a few years in the UK. I eagerly awaited the UK shipping rollout but my excitement quickly disappeared as I saw the 50%-60% price markup BEFORE tax and duties. For that amount of money, I have a multitude of better quality shopping options in London.

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  30. DaniBP: I was wondering the same thing. Such a shame.

    I mean, come on, if Boden can set up a bodenusa.com site and not overcharge Americans (their prices are exactly the same was what they charge the UK citizens after doing the exchange rate and all), why can't J. Crew do in reverse?

    And Asos? Umm, I received a beautiful sequined jacket, on sale, for $40, with free ship and NO duties. I basically felt like with shipping costs and taxes, Asos was giving their goods to me at cost.

    Once or twice I have even perused some Canadian on-line shops and all of them have fair prices and shipping costs for the Americans.

    I just don't get it.

    Sadly, I think they believe that losing some early converts to J. Crew in Canada is worth it if they gain a multitude of Canadians who believe all of this is so novel. Sigh.

    Gigi: "I wouldn't be rowing for the crew anymore." LOL. Love it!

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  31. "My conclusion from all this is that J Crew's e-commerce partner is using an appalling dollar-pound exchange rate to subsidise its (quite slow) flat rate shipping."

    I'm not sure if it is this so much as they are trying to make sure they stay on top of the unstable rate exchange.

    I can definitely relate to the pain of the cost inflation, because Topshop did a similar set up when they introduced their US site. The prices on the US site were much higher, and the cost of returning an item was ridiculous.

    But I have friends in the UK that have complained that when Forever 21 opened up over there it was the same problem as well.

    So it really isn't one company, but rather a more universal retail problem that still needs to be worked out. I wish every country used the same postal system, with streamlined prices and delivery times.

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  32. @Moodboard, a simple solution is to leave the prices in US dollars, as other retailers selling overseas have been doing.

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  33. Agreed Cris, this isn't rocket science were talking about here. The solution is simple.

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  34. As I've said before, the issue here is NOT the 18% increase itself (at least not for me), but DUTY CHARGES APPLIED on the 18% increase. If I order stuff from bananarepublic.ca, duty is already applied (and I know that it is), so obviously, all I'm paying "extra" for is 13% tax. I don't even pay for shipping, since my orders are pretty much always over $50. If I order stuff from the US Banana Republic site, I expect to pay duty, and it's usually very high. I don't order from the US site unless it's something I don't see in Canadian stores or on the web (e.g. XXSP sweaters). J.Crew, on the other hand, applies the duty charges over the already jacked up by 18% price just so they can apply the $9.95 flat shipping.

    I have a feeling that Jenna and Mickey will reply saying that they'll have to increase shipping costs if duty is part of the base price (Crate and Barrel does this). Are you guys okay with that?

    Interesting fact: Coach doesn't do price increases in Canada (but will charge duty if you order online and have it shipped to you. You DO have the option of picking up at a store)

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  35. Wow JC this has blown my mind and that is not easy to do...and I am not even Canadian. I had a bad feeling about this company going private and it seems my gut was right. This is such a horrible thing to do to its customers. It seems that NOT building a store in Canada would have been better for all of it's international customers. You should at least be able to see the USA sale section in case you have contacts/ties to the US. Oh, my verify word is
    "addec". Maybe someone is trying to tell me something.

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  36. Oh, and let me add that the TIMING of this fiasco was really unbelievable....right at the same time as their Sept. roll-out. That seems pretty cruel to me.

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  37. If J.Crew does not change this policy we should to create a Facebook group bringing this to people's attention.
    I too have been a loyal customer, constantly telling anyone that will listen about their fair shipping policies etc..
    If it's been shipped from he US, it should be US prices; if they want to charge Canadian prices then they should open a distribution center here!

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  38. J Crew has no choice in adding the duties and taxes onto goods shipped in to Canada- it's Canadian law. BUT, in increasing the prices for Canadians, one would assume that they have factored those duties and taxes in to the price increases. Since the US prices have not risen they cannot argue that production costs have risen. I figure they are either using an exorberant exchange rate to calculate the price increase or they have added the duties and taxes into the price (like BR, GAP, etc does) but haven't clued in/don't care that they are still having to charge extra duties on top of that. Surely they looked to other US-based retailers who have introduced Cdn shopping online, like BR, Gap, to see their model. But, I think those companies also have Cdn distribution centres. Really, I'd be happy if we could just go back to ordering from the US site. I hate to say it, but I liked the status quo on this one!

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  39. As I said previously, I will continue to shop at JC in the US or have my stuff shipped there. UPS is not an option for me. ;)

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  40. @Bourbon&Pearls, @navyandbeige, @Linda:
    I quite agree. These UK prices just look hopelessly uncompetitive. You could shop at Boss, Hoss Intropia, Anthropologie, Boden, Hackett, Jack Wills, Aubin & Willis, Abercrombie...any number of places, and get the same quality, instantly, at a lower price.

    @Moodboard, @cris, @orangecrush:
    Actually it has very little to do with unstable exchange rates: the site already uses technology which can and does automatically update all the prices as exchange rates change on a daily basis. That's why CAD and UKP prices look so odd, not round numbers or anything.

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  41. This is ridiculous.

    I am a Canadian customer (and one in Toronto at that.) I was in the Toronto store earlier today and made some purchases, but they were sold out of the Hacking Jacket in Vibrant Flame in Size 2. There's a waiting list of over 30 people for that item, so I thought, well, why not just order online?

    And here's how I ended up here. How is it so much more expensive??

    When I purchase something at the Canadian anthropologie, the cost of the item is equal to the cost online + the shipping costs to Canada. Would it be so difficult for J. Crew to use the same approach?

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  42. @Fong, thanks for letting me know - I hadn't tried it yet.

    I also wrote an email to Mickey, if I hear back anything, I'll post it. As of right now he's away from his email...grr! I had posted this comment on xoxo's blog, but I definitely think this applies here...

    FYI Canadians - I find a LOT of my J. Crew look-a-likes at Joe Fresh's Loblaws/Superstore. American Eagle is good for a few knock-offs too sometimes (in the accessories) and sometimes Old Navy has a lot of similar shirts and tanks. Here's a post I did a while back on some similar J. Crew items found elsewear http://rufflesandsequins.blogspot.com/2011/03/j-crew-for-less.html

    Hope this helps!
    Tasia

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  43. I received this just now:

    "Dear Laura –



    Mickey shared your email with me – we appreciate your taking the time to write about jcrew.com and are absolutely taking your feedback seriously.

    The change in cost for merchandise purchased in our stores and online was necessary to keep pricing consistent with our new – and expanding – retail operations in Canada. Duty and HST are still a separate fee – the estimated tax when entering your postal code includes only HST, while duty is included in the total tax amount at checkout – very sorry for any confusion.

    We definitely understand your concerns, and will continue to work to provide you with an excellent online shopping experience.

    For J. Crew, the reception to our new store in Canada has been nothing short of extraordinary. Our Canadian customers are very important to us. As we expand our presence, we are committed to keeping you a loyal J.Crew customer, offering the best quality and service possible.

    Sincerely,

    Jenna Lyons
    President & Creative Director"

    My reply:

    Jenna,

    I appreciate your email.

    However, it has still not explained why the merchandise is priced
    higher in Canadian stores. If it is unrelated to shipping and duty
    costs, are you simply charging Canadian customers more for your
    product, when for years they have been charged the same amount as
    Americans?

    How does that present to Canadian customers that you feel they are as
    important as your American customers?

    I look forward to your reply,

    Laura

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  44. I'm really disappointed in jcrew. Canadians are not suckers. I remember when BR came and how expensive it was. They rarely had sales. What a difference a recession makes. Now sales are so frequent I almost never buy anything FP.If jcrew wants to do well here they will need to do the same.

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  45. Closet Crisis & DaniBP: Happy to share your links. J.Crew needs to know there are lots of blogs discussing this most important topic.

    West Coast Crew'ner, jcrew guy in Canada, Jenny, Casual-Crew, WMM, Jan, navyandbeige, xoxo, GetFresh, & Everyone who posted: Thanks for the thanks. I am happy to help bring attention to this important issue. (We JCAs have to stick together!) I think it is really is unfair to have this double charge and the excuses we have been hearing from J.Crew don't add up. (I don't know how the cost of business in Canada could have possibly increased that much in just one day. Wednesday prices were fine, Thursday they are hiked up. Maybe I just don't get it. But they need a better explanation.)

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  46. All I ask is to pay the same as I was paying before!! (I'm not asking for much.)

    If "the cost of doing business internationally" warrants these new Canadian prices, then perhaps the company should spread this "cost" evenly across its entire customer base. But no, they've actually made US online shopping cheaper.

    (not that I'm not happy for the Americans for their new flat rate shipping, but if they can afford to do that... )

    It just doesn't make sense!

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  47. @Laura, I just recieved an almost identical reply from Jenna.

    Dear Tasia –


    Mickey shared your email with me and I wanted to reach out. Please know that we appreciate you taking the time to write about jcrew.com and are taking your feedback seriously.

    The change in cost for merchandise purchased in our stores and online was necessary to keep pricing consistent with our new – and expanding – retail operations in Canada.

    However, we understand your concerns, and will continue to work to provide you with an excellent online shopping experience.

    For J. Crew, the reception to our new store in Canada has been nothing short of extraordinary. Our Canadian customers are very important to us. As we expand our presence, we are committed to keeping you a loyal J.Crew customer, offering the best quality and service possible.

    Sincerely,

    Jenna Lyons
    President & Creative Director

    ....Blarg

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  48. I don't see that shopping is now cheaper for US customers. Shipping is now higher if you're buying up to $25. The shipping savings doesn't kick in until about about $100 and then at $175 or more, yes it's now free.

    I still don't really understand what's going on except that people are getting jacked. I was really hoping that this was some sort or e-commerce glitch. It's nice to see a timely response, but Jenna's email response seems to say, you wanted stores in Canada...it's gonna cost you!. Every now & again I mention that trust has become an issue for me w/J Crew. This new development is another example. Obviously the merchandise is attractive or we wouldn't hang around. This community is phenomenal, too, and definitely keeps me around. However, with other retailers like ASOS changing to free US shipping in the past year and Zara coming online (9/7!), competition will get a little tighter. At least I hope it does.

    Aw, I'm sad. J Crew flag at half mast today. No, I've taken it off the pole in honor of our non US JCAs.

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  49. Re: "Our Canadian customers are very important to us."

    I have always loved J.Crew; the quality and fit would justify customs costs and long postage times. My J.Crew tie clip receives more tender affection than any other part of my wardrobe. But even to a dude as fond of J.Crew as I am, this business move is disagreeable for its flavour of avarice. I fear that this may erode the trust of international customers, and tarnish the image of a heretofore sterling brand.

    For the past three years, I have been on my toes for the opening of a Canadian store. The tolerability of the merchandise notwithstanding, I now face the disappointment of not only a gender-exclusive catalog, but rising prices on the web-site. For a young professional like myself, this is problematic. It is nothing less than a dual insult to my loyalty, a misfortune that arguments of economy and logistics cannot remedy.

    As a Canadian, it is now not only less difficult, but also less costly, to obtain similar garments from competing retailers who have friendlier, more graceful, business ethics. I do hope that Jenna and Mickey arrive at this realization. Pocketbooks and patience have limits, the violation of which will upset even the most ardent patronage.

    -Dip, a dismayed customer

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  50. I got the exact same reply from Jenna, too. My J. Crew shopping days are over until they start respecting the intelligence of Canadian customers. Did they think we wouldn't notice, or would just accept the change?

    At least when new customers google J Crew Canada this huge uproar will come up and they will know... mua ha ha!

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  51. Too bad J.Crew. I was a loyal customer from across the border and was eagerly anticipated the new website and store. I paid more and risked clothes not fitting by ordering online. I will not do that anymore, I will not pay more when our dollar is the highest it has ever been. I will exchange my money in Canada schlep myself across the border and pay likely half what I would pay in Canada for your clothes in the US, if I ever get the chance. Too bad your fall coats, sweaters and retro styling looks so great this year.
    Sincerely a sad JCA

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  52. I also received a response and I provided some further clarification.

    "Dear Jenna,

    Thank you for personally sending a response. I was excited to hear of J.Crew's expansion into Canada and was looking forward to making my first purchase in an actual store. You'll get no argument from me that a price adjustment is required "in-store" to cover the costs of doing international business. Your competitors have done the same thing.

    The difference lies in your new online Canadian shopping experience. The easiest way for me to explain my point is, if I were to buy an item in your store, it should cost exactly the same online. (Subtracting the shipping.) However, this is not the case. In fact, the difference is so large that it will deter Canadian customers from ordering in the future.

    Let me give you a real world example, my last order August 12th:

    Merchandise Total: $721.00
    Duty Amount: $67.77
    GST: $39.44
    Total Amount: $828.21

    After J.Crew's pricing change, the exact same order is now $1021.56. ($193.40 more or roughly +24%)

    I can whole heartedly say that this is not the benefit Canadian's were looking for with the news of our first store. You can see our responses all over the Internet and even on our news stations. The local Toronto folks who are excited and intrigued by the Yorkdale store pale in numbers to the legions of loyal J.Crew customers who have shopped online for years. And some of those years were difficult indeed with the relative exchange rates at $1.65 or higher.

    I can't begin to understand the complexities of international expansion. But I do understand basic consumerism. And the fact that I have to pay this much more for being Canadian is a deal breaker. If you look at your online competition, although they have marked the goods up to cover the costs of doing business in Canada, they are offering free shipping and absolutely no duty or customs.

    And lastly, it appears certain items are oddly no longer available to ship internationally even though they were previously. (American made items?) Perhaps to avoid upsetting customers you might hide these items from international shoppers. Or better yet, return to your previous method of business that was such a positive experience for so many of us in Canada."

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  53. "The change in cost for merchandise purchased in our stores and online was necessary to keep pricing consistent with our new – and expanding – retail operations in Canada."

    Ok. So now I am curious as to how Jenna will explain the 50% price increase on the UK site and the missing sale section, that will surely also be reflected on the Euro site.

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  54. Has anyone spoken to staff at the Yorktown store about this? I would but I live out of province... perhaps they could be an ally?

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  56. I just do not understand why J.Crew makes it harder and harder to shop with them. Do they think that playing hard to get is going to make shoppers desire them more? They have taken away incentive after incentive on a consistent basis since the infamous website debacle of '08, and now this? I feel so badly for all the JCAs dealing with this mess. I just cannot imagine how this could possibly be a good business move on their part, but then again, nothing they seem to do ever makes much sense. I really hope that MD listens to the public outcry this time though and makes some significant changes quickly.

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  57. I'm so sorry that our JCA friends are dealing with this. Even more so because IMO, because of the declining quality there haven't been many pieces worthy of full price at JC in quite some time - I can't even imagine paying MORE for them.

    I think this is part of a bigger strategy to attract a more 'price-insensitive' consumer that's not going to balk at their high prices (relative to lower quality). Without shareholders to answer to, there's not as much pressure to keep the prices reasonable or move merchandise quickly - which may be why the Plumage vest has been languishing in the sale section for months at $299.

    MD has been ignoring his customers for quite a while (no doubt putting the finishing touches on his $800 umbrella) - hopefully this time will be different.

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  58. And do you know what else really bugs me (Sunday soapbox) - the awful phrase "thank you for reaching out" I did not reach out, I wrote to you, reach out makes me feel needy and suggests a sweaty palmed desperation! What a horrible new phrase.

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  59. silver-lining, I totally agree: they are looking for a "price-insensitive" customer and perhaps have weighed out the risk of alienating their past international customers.
    The truth is I didn't care that much that an actual retail store was coming to Canada. I am an online shopper, I just don't have time otherwise. I am exactly the Canadian customer JCrew should desire, now they've alienated me and hundreds like me. It's quite incredible.

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  60. I am starting to think that they are testing the market with the higher prices, all that talk about the costs of doing business internationally is just hot air.

    Luckily there is still Ebay, and of course a choice of several and more transparent retailers.

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  61. They don't offer a student discount to American students living abroad. I tried to get 15% off but it can only be in the store (what about students who don't live near Jcrew!!!). I order the clothes to my house and then have them shipped to Europe! JCrew has really lost their customer service in the last few years.

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  62. I wonder if they took the online catalogs down so International customers would not know what US prices are??

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  63. @savvy shopper We can view the US web site and the prices in US$.

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  64. I feel terrible for the Canadian JCAs. It's insulting.

    I teach undergrad and grad-level Business Strategy and Marketing, and I'm struggling to figure out a rationale here. The fierce brand loyalty they enjoy (and take for granted), despite routine product and service disappoinments to many of their customers, is really in jeopardy here.

    I agree w DaniP and silver lining ... they've "done the math" on this expansion, and are obviously willing to risk trading sales volume for margin in Canada. I'm also sure they have modeled the impact of Canadian orders shipped to US addresses somehow, unless they are really stupid. The timing of the US flat shipping is probably somewhat of a deflection tactic, too, because everyone knows that shipping is often revenue-generating for retailers.

    I think I have a new business case for my students this semester.

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  65. @tiny dancer: totally agree with you. Joe Fresh has a 100% silk blouse that's a total dupe of the blythe blouse in a variety of colors for $40. No shipping or duty nonsense there!

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  66. ha- I went to Joe Fresh yesterday and got that blouse in the gorgeous blush colour. The quality of the silk is identical to the blythe blouse, and is now hanging next to it in my closet!

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  67. I'm also boycotting J.Crew. It's been a few days, and I'm still as mad. It is insane that an item bought in the Toronto Store would be 25% less expensive than if bought online. Canada is a huge country, and a majority of people can't shop in Toronto!!

    It is over! I won't be taken advantage of. I was planning on buying many items for fall but I will now be looking elsewhere. If I want to pay 300$ for a cashmere cardigan, I'll invest in a piece that will last a lifetime, not on one that will develop holes and pill after a few wears, no matter how cute the color is... For the same price, there are local designers offering way better quality clothing here (like Ça va de soi for cashmere knits). Let's speak with our wallets and make sure that new canadian customers know about what J.Crew is doing.

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  68. Bottom line - The clothing industry is easily one of the most competitive markets in existence. Just look at the explosion we have seen in high end denim in recent years. There are simply TOO MANY options out there to stick with a company that is going in the direction that J.Crew is going. Sure, I will still get their catalog and I will most likely still put in the occasional order. With that being said, most of my business will be going elsewhere until J.Crew returns to proper form, if they return to proper form.

    I spent over $8,000 in 2009, spent roughly $6,000 in 2010, and I am on course to spend roughly around $2,500 in 2011 if my orders remain consistent. In other words I am currently spending roughly 30% what I did just 2 years ago and I guarantee that number will continue to decline if J.Crew continues to do business they way they have been.

    I dont know about other people but my single favorite aspect to J.Crew is the designer collaboration items. Its where I have really spent the bulk of my money. With that being said, I dont have to shop at J.Crew to buy from those companies. Sure, I might not get the items that J.Crew is having made by these companies but that's ok. These companies have FAR more to offer than just their J.Crew contributions. For example, I dont have to go to J.Crew to buy a Barbour jacket or a pair of Sperry shoes or a pair of Ray Ban sunglasses. The reason J.Crew picked these companies to do business with is because they are outstanding companies, all who have plenty to offer outside of J.Crew.

    Its pretty obvious to those that have been shopping at J.Crew for a number of years just what direction this company is headed. We, as consumers, have but one way to really show our displeasure with particular companies....that being our wallets.

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  69. Hi everyone! I am posting the following from fellow JCA, Monika M., who wanted to add to the discussion (but was having Blogger issues):
    - - - - - - - - - - -

    Monika M. said...

    There is a statement in Jenna's reply letter that is in contradiction to how they have always done business in the USA:

    "The change in cost for merchandise purchased in our stores and online was necessary to keep pricing consistent with our new – and expanding – retail operations in Canada."

    I live in Canada but have followed this and other J. Crew blogs for years. Isn't there always someone posting about how the price in the B&M stores are different than the online price for a lot of the items?

    So why suddenly care about matching the prices for ONE store in Canada right now? Americans have been used to seeing different prices for online and B&M stores for a long time.

    Canada is a big country geographically - we aren't all running to Toronto to purchase J. Crew there and not ordering online... There are some Torontonians who may only go to Yorkdale a couple of times a year. The same goes for when they open in Calgary or Vancouver. Plus if you are Petite or Tall you have to order online anyway. So the majority of J. Crew's market in Canada is still ONLINE.

    If Jenna asked me right now how to fix this mess, I would say "put the website back to the way it was - charge US dollars for everything - leave the duty and taxes where it was. Let the Canadian stores sell for a Canadian price that is different because it INCLUDES duty and brokerage, etc."

    We are not stupid, we have always understood the concept of dealing with a border and what that means financially. Leaving the website the way it is now is insulting to our intelligence. I am not going to pay that much more from one hour to the next, simply because we have a store in Canada. It's like they haven't done the math or don't understand what we are talking about. I don't care about a price increase that INCLUDES duties and brokerage like every other site or one that just leaves the US currency in place and then charges the duties and taxes on top. One or the other please - not both.

    There has been no justification given to Canadian website shoppers that isn't insulting so far. We all keep thinking it is a website glitch or something else because for a company as forward thinking as J. Crew to have got this so wrong, it is simply amazing.

    I really wish now that I had bought everything in my cart the night before "the great expansion into Canada". I really thought things would be so much better after the launch, that I never considered it getting almost 30% worse.

    Sorry for the long post and the odd "all caps" but if you really love J. Crew, I guess you are passionate about the good and the bad...

    I agree with Gigi - the J. Crew flag is truly at half mast here in Canada.

    Thanks for listening.

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  70. I emailed Mickey this morning, have had a reply from him and a phone call from one of his assistants.
    Apparently the situation is under a complete review.

    They have heard us loud and clear, but keep emailing and phoning. And posting here too (THANKS ALEXIS!)
    I told the lovely young man who phoned me that things should just go back to the way they were, we all know we have to pay duty and HST, we live in Canada, we "get" taxes!

    I won't just miss shopping JCrew I'll be missing my people here in the JCA community, definitely a fun part of my often stressful day.

    It will be interesting to see what happens.

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  71. Thank you so much Dani, and I hope that also the European prices will be reviewed.

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  72. That is good news indeed, thanks Dani! And I totally get that you'll miss more than the shopping-I currently stay home with my 2 young children and browsing the j. Crew site was my way of unwinding at the end of the day. Not only will I miss the shopping, I'll miss my sanity!

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  73. DaniBP: Thank-you for posting. The only way to get back at JC is to stop buying, and only when there is a sharp drop in the Canadian and UK on line business something will get done.

    Also any Canadian JCA who placed an order on Wednesday watch your cc statement, JC has altered the charge hopefully for the flat rate shipping rate.

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  74. Good job y'all, don't give up -- I have a feeling they actually are going to try and sort this out for our Canadian friends. I hope so. As someone else said earlier, why should we be surprised at price inconsistencies, we're all used to following the bouncing price ball ... but this is at a whole other level of craziness.

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  75. Hurray!

    I really do hope they reconsider this! Their fall line up looks amazing and i want to be able to purchase a lot of things! But honestly if they don't even consider lowering the prices or (fingers crossed!!) going back to the old website, my account will be deleted! I'm not exactly priced out of J Crew budget wise but i do feel that these rising prices are going to effect everyone sooner or later.

    At these prices i think would rather purchase from other online stores such as Kate Spade and DVF! And really its mainly because i know what i have paid in the past (last weeeeek!) and its infuriating!! I mean come on - J Crew is suppose to be your easy going go to for everything - especially the classics! And usually while i was looking for those i would add different new items or not-so-classic pieces! But now if you do that your bill goes way over a 'normal' spending spree. So it really limits trying new things and really even bothering to take a "gamble" on something you're not totally sure about!

    Thanks for all the support from everybody especially the americans! I know it doesn't affect you but who knows what tricks are up their sleeves...Stock up now or forever hold your peace [of mind]!

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  76. @Sunflower, I love Ça va de soi too!!

    Tasia

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  77. West Coast Crew'ner

    I was in the Toronto store on Friday - and let's just say I was making a rather large purchase. I did happen to mention what was happening with the website and how upset people were. They seemed sympathetic, but not sure they have a lot of say at this point beyond maybe mentioning they have been getting a lot of complaints. However, who knows how many people even realize the price difference yet. When some of these new customers start turning to the website to pick up colors or sizes not available in the store and realize how much more it's going to cost them, maybe they will start complaining too.

    It is definitely poor form and I can guarantee you, I will not be ordering anything online to my Canadian address unless they do away with the extra duty cost. And, given the still higher prices, if I have a trip planned to visit the US, I will start sending items to family and picking up when I go down.

    That being said, I have no problem with the price increases in the store for the most part, as they are about equivalent to adding in the duty. However, I agree in many cases, you can find similar items from Canadian brands and even UK brands for less. I admit I might have been overly excited about the new store (and possibly drinking some Crew-lade) during my visit on Friday and purchased more than normal, but think I will be much more careful with my purchases going forward from JCrew in general.

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  78. I forgot to add these new prices are set for a Canadian distribution center which is fine with me however the items are still shipped from the US and the prices should be the same as before on the old website.

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  79. The prices when switched to pounds are absolutely ridiculous, plus I can not access sales anymore ("lovely" message pops ups as to how Jcrew is sorry for inconvenience)..

    I was looking forward to shipping directly to the UK, and bypassing the intermediates, but as it comes with all the service charges from set up US address companies, it will be still cheaper to use them and buy in $. Please give me access to sales, my only kind request to jcrew, it is trully not fair

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  80. An update for all the outraged JCAs…

    A photographer from the Globe & Mail was at my house earlier this afternoon (taking pictures of me and my soon-to-be-returned Toronto JCrew purchases) and I just got off the phone with the reporter – things can always change with newspapers, but it seems at this point that the JCrew story will be running in tomorrow’s edition.

    I try to keep a low profile and I’ve only lurked here in the past, but I am posting now and pursuing this story for all of us because it is just so wrong. I’m not at all comfortable with the attention (I’m basically the only person I know aside from my cat and my mother-in-law who is not on facebook and I hate having my picture taken) and I don’t want anyone to think that I consider myself to be any kind of JCrew authority. But I do love and live in JCrew and I thought this was an important consumer issue to bring to light and was able to find a way to do it.

    When I realized on Thursday what was going on, this was the first place I turned to and it made me feel better to see that the JCAs were already way ahead of me. All of your comments here are just as important as your emails to the company, because you had better believe there are both PR people and reporters reading this site regularly, too. I also know they are looking at the math some of you have done and it does not look good for JCrew. Clearly, none of us are fooled by the responses we have received about pricing needing to be consistent with the Toronto store etc. We’re Canadian, we’re used to getting screwed at the cash register, but even if we might have found an increase acceptable in-store to offset duty charges, there is no acceptable explanation for why an order I paid $260 for a month ago online would cost me $385 today on the Canadian JCrew site when the only circumstance that has changed is that they’ve opened a store here. I wish now that I hadn’t spent the past 9 years asking JCrew when they were going to come to Canada every single time I had a customer service interaction with them.

    I haven’t heard anything further about Global News (which I’d mentioned on Friday), but there is always the possibility that once this hits a national newspaper it will stir up further media interest. I will keep you all posted. In the meantime, keep your eyes peeled for tomorrow’s paper and keep making your opinions known!

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  81. Sudu! I am sure you were awesome! Thank you so much for doing this for all of us! I will be reading the article first thing in the a.m.!

    Ah - the power of social media!

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  82. sudu: Thank-you for posting and for following up on this mess. Where the prices hikes really show is the differences for purchases made 2 weeks ago and today for the same item at the same price incl duty and shipping.

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  83. @sudu: I'm looking forward to the article! Does J.Crew report public earnings anymore (They would still have to if they have outstanding debt, does anyone know?). If they do they may have an earnings call soon, and I could totally call in and ask Mickey if they plan to change the pricing policy.

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  84. sudu: Thanks so much for interviewing with the Globe&Mail on this issue, I understand that it was a compromise to your privacy but we really appreciate it!
    I will be up with the birds to gather my newspaper from the front porch... !
    I also rue the day I wished for a Canadian store.

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  85. I'm Canadian and I get around shipping limitations/increased Canadian prices by having a US address for online purchases. I live 5 minutes from the US border and set up an account with Mailboxes International whereby I use their address as my shipping address, pick up my packages from Mailboxes International and bring them back to Canada. They charge $2.50 per parcel, which is so worth it, and even though I declare everything I bring back to Canada, the border guards rarely make me pay duty. This may be an option for other JCAs.

    I definitely won't be shopping at the Vancouver store when it opens since it sounds like JCrew is using its new Canadian stores as an opportunity to rip off Canadians. Despicable.

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  86. This Canadian is protesting the unfair international pricing policy with my wallet. I am a longtime J Crew fan and was hopelessly optimistic that the launch of the Canadian website would be a good thing(!). Now I feel alienated by my favorite clothing store. A cult-culture can easily swing the other way -- for good if they do not rectify the situation quickly.

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  87. I'm still trying to wrap my head around why J.Crew thought this would be a good decision. A few things that come to mind:

    a) Our intn'l customers already have to pay higher shipping fees and duty and still willingly shop at J.Crew despite this. Therefore, they must be a fairly elastic customer base. This means there is a good chance they will still continue to buy our product even if we raise our prices after introducing a flat rate shipping fee. This is straight up short sighted opportunism.

    b) By using vertical integration to exchange currency ourselves, we are cutting operating costs since we are no longer being charged by a third party (banking institution) to do the exchange for these transactions. NOTE: there is no way the new jacked up prices for intn'l customers are an accurate reflection of the money it costs J.Crew to do these exchange transactions internally. This is a clear cut case of price gouging.

    c) Our intn'l customers will be "flattered" at our recognition of their patronage and won't notice our new flat rate shipping service actually results in a price increase (this is the most insulting of all explanations, and hopefully not true!).

    One of the reasons this blog is so great is that it gives customers a central place in which they can come to discuss feedback amongst each other. It's about time customer concerns became part of a group discussion that simply a one-on-one conversation between a consumer and customer service rep.

    Keep up the good work JCA's on voicing your concerns together!

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  88. J Crew have now offered international shipping to Australia and their prices are 30 - 40 dollars more expensive in Australian dollars when because of the exchange rate they should be cheaper! What a joke, and when I emailed them they tried to tell me that it was to cover the cost of offering their products internationally. How come then no other US company does that? I am so disappointed as I love their clothes and have been waiting for them to ship internationally but I won't be ordering from them until they change their prices!

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  89. I can't wrap my head around how JCrew hikes up their prices so much for international customers. I even sent them a mail about this. Their shipping rates are also so bizzare. I think the prices should remain the same for all countries and we all worry about our exchange rate. This is the first site I've come across that works like this and I'm a biiig online shopper. I hope they change this and soon.

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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! :)