The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
NEW YORK, United States — J. Crew Group Inc.'s flagship chain will start selling an assortment of women's clothes at Nordstrom Inc. stores, part of a push to revive growth at the moribund apparel brand.
J. Crew will introduce the collection on Sept. 12 in 16 Nordstrom locations, as well as the department store’s website, according to a statement Monday. The move builds on an existing partnership with Nordstrom, which already sells J. Crew’s Madewell brand in 76 stores and online.
"We both share the same high standards of customer service and store experience," J. Crew chief executive officer Mickey Drexler said in the statement. "We are known for exceptional design, quality and style, which we know will appeal to the Nordstrom customer."
J. Crew is looking for ways to win back shoppers — especially women — after price increases and a shift away from classic styles alienated customers. The retailer has revamped its merchandise, but same-store sales have slid during the past seven straight quarters. As part of his turnaround plan, Drexler also has opened more off-price stores and expanded Madewell, the New York-based retailer’s younger, hipper brand.
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Falling Value
J. Crew’s slow comeback has brought headaches to its private equity backers. TPG, which led a 2011 leveraged buyout of the company, cut the value of its stake in J. Crew by 84 percent at the end of last year. The firm told investors that its $478.6 million equity holding in J. Crew had fallen to $76 million.
The agreement with Nordstrom is the only one of its kind in the US, and not a push toward selling more clothes through other chains, J. Crew said on Monday. For Nordstrom, the partnership fits with its long-term strategy of offering exclusive brands, co-President Pete Nordstrom said in the statement. The department-store chain began selling Madewell in 2015.
“Our customers love J. Crew,” the executive said.
By Lindsey Rupp; editors: Nick Turner and Mark Schoifet.
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