I find this a strange move. Consumers aren’t spending, so J. Crew are taking their factory outlet online. The strategy seems straightforwards enough: if customers won’t spend, give them cheaper fashion to tempt them.
But aren’t they just telling we the non-passionate consumers to wait? Aren’t they communicating the fact that if consumers hold out a little, they’ll get it cheaper anyway? Isn’t this all a little short sighted?
Let me know what you think of the strategy by leaving a comment below.
J. Crew Group Inc. will put its outlet-store clothing online in September, making its lower-cost offerings more accessible at a time when the company says consumers are hesitating to pull out their wallets.
The New York-based clothing retailer is gambling that it can expand sales without cannibalizing demand for more expensive merchandise at its mainline stores. Apparel companies typically locate outlet stores in out-of-the-way malls, forcing customers to drive long distances to get access to the discounted goods. J. Crew is among the first to risk selling outlet gear over the Internet.
Via.
