First, it was the Globe and Mail who covered J.Crew's higher prices in Canada (refer to the "Dear J.Crew, Stop Double Charging International Customers" post). Now there is more coverage. "Thanks!" to Sudu (in this post) who shared the following article from the Star (click here to read in its entirety):
Higher Canadian prices irk J. Crew customersIt is good to see continuing media attention on this topic. I am still hopeful that J.Crew will reconsider their current pricing strategy for international customers.
By Dana Flavelle
August 22, 2011
Popular U.S. retailer J. Crew opened its first store in Canada to long line-ups and immediate controversy over its pricing strategy.
Like many other U.S. retailers, the preppy fashion chain is charging higher prices in Canada than in the U.S., on average 15 per cent more before taxes.
The move has annoyed some of its Canadian customers, who believe Canadian prices should be on par with the U.S., given the currencies are roughly equivalent.
J. Crew has responded to customers with a letter signed by President Jenna Lyons that said the retailer is taking the concerns very seriously.
“The change in cost for merchandise purchased in our stores and online as necessary to keep pricing consistent with our new – and expanding – retail operations,” the letter said.
“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,” the letter also said.
The disparity is particularly noticeable online, where the final prices on J. Crew’s Canadian site are as much as 40 per cent higher than on its U.S. site once taxes and shipping are added.
For example, the U.S. price for a pair of Café Capri plaid wool pants is $138 while the Canadian price is $160, a difference of 15 per cent. Once shipping and taxes are added, the U.S. price is $159, while the Canadian price is $223, a difference of 40 per cent.
Many Canadians are familiar with J. Crew’s U.S. prices because they previously ordered online from the U.S. site, or drove to border stores such as the one in Buffalo to make purchases.
The controversy has taken some of the shine off J. Crew’s widely anticipated move into Canada.
There were long lineups outside on opening day at the Yorkdale shopping mall store last Thursday, Aug. 18, its first outside the U.S. market.
J. Crew isn’t the only U.S. retailer to charge higher prices in Canada. Many retailers do so, citing the higher cost of doing business in a smaller market and also higher government-mandated duties and tariffs.
Do you think J.Crew will change its current pricing strategy for international customers? In particular, will they revert back their Canadian pricing to before the site upgrade?
There was an article in the Globe today on the same topic, so it's obviously a problem.
ReplyDeletehttp://www.theglobeandmail.com/report-on-business/j-crews-canadian-shoppers-balk-at-higher-prices/article2136570/
I can't believe they think we are stupid enough to pay so much more when those of us who are longtime customers know that the merch just isn't worth that much more. But I KNEW something like this would happen...
What theyre saying is simple: we are price gouging you, fellow Canadians, so we can take our profits and open more stores. When we have opened enough stores, we will continually j.screw you, because you will have already have accepted our over pricing strategies. Jenna, stick to designing, because I'm really starting to dislike you as a businesswoman!
ReplyDeleteThis issue is getting a lot of attention, that's for sure. Ironically, other retailers that have moved up here also charge more, but I do not recall any of them getting as much attention as J. Crew is.
ReplyDeleteI urge all Canadian J Crew customers to express their outrage over the recent unprecedented price hikes for Canadian customers particularly online customers to boycott J Crew until they reverse their decision.
ReplyDeleteThese news articles are great though the real issue for us as shoppers is the online business, as has been said many times.
ReplyDeleteI placed an order last Wednesday which today would cost me $260 more in mark-ups and duty.
There is absolutely no way any of us can place an online order until this is resolved.
Just in time for back to school, very inconvenient for me I have to say.
As much as I would like to pick up a few things on sale with 30% off - I simply cannot until they fix the pricing online. With the 30% off on the sale items, it is almost like the "regular" sale price we used to enjoy on the US site.
ReplyDeleteBut on principle I will not buy anything until they fix this. I am hoping they will check their Canadian sales numbers and start to see a decline that is significant enough for them to do something about it.
I had so many items that were gifts for people in my cart - I agree with DaniBP - the timing of this is very inconvenient.
Kudos to @Sudu and Alexis for keeping up the media and posts' pressure, as well as everyone who has called, emailed, done returns to our one Canadian store as a matter of principle, and shown solidarity in the online shop ban. Although the glossed-over media soundbite and unkind comments to news articles are frustrating, what everyone is doing is so important. I think the issue is whether JC will see it as a blip on the radar and whether they continue to assume that the wallets of the "of the moment" many will make up for the longtime clientele's continued boycott @DaniBP and @Monika agree on the particularly lousy timing, good fall roll-out, need work clothes plus was planning on the 30% to pick up some pieces for my end-of-summer break. No go!
ReplyDeleteRe Rose's comment: That's because JC put themselves out there as the celebrity of mass mall merchants. Unfortunately for them, they are still not considered as luxury goods. Would you see this kind of uproar if Chanel or YSL charges more?
ReplyDeleteThe pricing difference is ridiculous. I hope they fix it soon for the international buyers.
ReplyDeleteWhen I first found the price difference last week I was disappointed. Another great thing gone bad. I resigned myself to the occasional item heavily marked down since the price jumped so much. Off to BR since their prices were much more fair.
ReplyDeleteThe outcry and media coverage surprises and pleases me. Thanks to everyone for having a voice and to Alexis for this blog. Fingers crossed things change soon.
Until then hello BR.
If J.Crew does bring down prices in Canada, that will likely raise prices in the U.S. This is because duties, tariffs, and other costs of business are what raise the prices in Canada. I think Canadians should pay that and not spread the cost of doing business in Canada to Americans.
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ReplyDeleteMagnolia, I have to say...your rationale makes absolutely NO sense. It might be prudent for you to actually read through the issues before making such an absurd and illogical connection.
ReplyDeleteI was going to write a long post against yours but then I realized, people like you will never change. You will find someone to blame for whatever "hardships" you feel you are in. I feel really sorry for you.
I can't say that I understand that now that we have "one" store in Canada - that I will likely never visit given the fact that I live on the other side of the country - that we have to suck up the online pricing becuase that is the cost of doing business in Canada.... I can live with the higher Canadian price, but it boggles my mind that we are paying duties on top of a price that has already been increased for Canadians! Other retailers that introduce a "Canadian" website certainly do not charge us duties on top of the higher price! That said, I don't like the "Canadian" only website idea as we are often subject to limited product on top of higher prices - I just don't get it!!!!!
ReplyDeleteI fail to understand how J Crew can use the higher cost of doing in business in Canada as justification for the new pricing policies. Prior to August 18, J Crew was in fact doing business in Canada. While it may not have had a bricks and mortar presence in the country (retail, distribution, or otherwise), the company was doing business in Canada by virtue of the fact that the company sold goods to Canadian consumers. I should not have to pay 20% more for the exact same goods today because I am now forced to order from the Canadian website versus last week ordering from the US website. I live on the East Coast, so I can't just "pop-in" to the TO store!
ReplyDeleteEven those of us who can "pop in" to the Toronto store are out of luck when it comes to items they're out of stock in or don't carry. I don't mind the price increase in B&Ms so much as I mind the price increase online PLUS duty.
ReplyDeleteI'm on a wait list of over 50 people now for a blazer in the right size and colour - but I will not buy it online and pay 60 dollars more for it.
Magnolia,
ReplyDeleteIt's not the higher prices in Canada that are being objected too, it's the fact that if I order that exact same item on line via the Cdn website I will pay significantly more for it. J. Crew could either factor the duties and taxes into the price (like other retailers do, ie Gap, BR) and not charge duties and taxes on top, as would happen in a B&M. OR, they should allow Cdns to order from the US website and then charge the duties and taxes on top of the US prices, as has been the practice in the past.
However, Lindsay's also right- the attitude of "you pay more so I don't have to" is appalling.
Magnolia, Canadians are used to paying higher prices when shopping with U.S. and international retailers. With J.Crew we have always had duty/brokerage added and for my orders that topped out at about 26%. Now when I want to order online the upcharge is 40-50%. That's much more than duty/brokerage, it's unfair pricing and that is why people are upset.
ReplyDeleteI can't imagine that U.S. shoppers would accept a 50% markup for Zara or H&M, just as an example. It's a global world and most customers are well-informed. It's like J.Crew is trying to put one over on their international customers. Who would support such unfair business practices?
Magnolia: We do pay, but there is a limit, and there is reasonable and there is unreasonable.
ReplyDeleteI am Canadian and I have always paid more - online I paid the US price, plus Canadian tax, plus duty for getting the goods from the US to Canada, plus shipping to Canada. That's fair. Now, online, I am asked to pay the higher, Canadian price (and our dollar is near or at par, I might add), plus duty, plus tax, plus shipping (from the US, I am going to assume). That is called a price increase for no reason whatsoever.
If I go to the JCrew store (I would have to take a plane, since I live in BC), they aren't going to add duty at the cash register, are they? AND, the store has to pay overhead.
None of this makes any sense unless you simply assume what is obvious - we are being charged more because this company wants to charge us more. And I won't pay it. I will pay more at the store, and online as before, but the online increase is OUTRAGEOUS and ARBITRARY and UNFAIR. And, I don't need a pencil skirt or a sweater from JCrew so badly that I will accept this treatment. No one does. It's clothing, for heaven's sake!
There is a simple reason why they won't let Canadians order from the US website anymore. Here it is: They want to see if they can get away with charging us more for the SAME GOODS shipped from the SAME PLACE as before. Shame on them.
Spent last night exploring other websites. There is a lot of very nice quality, well-priced merchandise out there. Which I will be ordering.
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ReplyDeleteThe Toronto Sun has just tweeted looking for people to talk about their JCrew experiences. One or all of the Canadian JCAs should respond to this and keep the story going (they could have easily found me, so they obviously want something fresh at this point).
ReplyDeleteAlso note that the reporter has thrown in a reference to VS - if we don't mobilize on this the story could morph into something else, so we need to get on this quickly!
Here's the tweet:
#JCrew CDN prices getting a lot of buzz. R u paying more at US stores, like VS, now that they r in Canada? Email stefania.moretti@canoe.ca
(Thank you to everyone who said I looked good in the video. I think I looked like a potato. If I'd known when I got dressed in the morning that I was going to be filmed I would have worn my bellflower tweed pencil skirt and some heels!)
I so agree with all of you! Being a long time J. Crew customer I am extremly disappointed with this pricing strategy and will certainly be boycotting them until the pricing has been reversed!
ReplyDeleteI am surprised that J. Crew did not "research" the Canadian consumer better when they decided to introduce a store in Canada and to their Canadian on-line customers.