J. Crew Executive Summary

numbered 22. In order to reduce cannibalization of its catalog operations, J. Crew designed to make 60 to 70 percent of the goods existing in its stores unavailable through its catalogs. The first J. Crew retail outlet opened in March 1989, in the South Street Seaport in Manhattan. With 4,000 square feet of selling space, this store was designed to demand to the many members of the New York financial neighbourhood who frequented the seaport. The company intended to open 45 stores in its first press on into retail. Five months after the opening of its first store, J. Crew introduced two new catalog lines: ‘Classics’ and ‘Collections’. Collections used more difficult designs and finer fabrics to create dressier and more expensive items, while

Crew opened three new stores, each generously proportioned than the first, in Chestnut Hill, Massachusetts; Costa Mesa, California; and San Francisco, California. J. Crew chose these locations because they were in markets where catalog sales had in the past been strong. Each of these openings was supported by print ads in local newspapers and magazines that featured images from the catalogs, with a line representing the store's site. In November 1989, company also launched a national magazine advertising campaign. By the end of the year, this had helped to make retail sales of almost $10

Crew went through the management changes once again in 2002, when, Sarvary stepped down. Ken Pilot was named his successor but was quickly replaced by the retail industry veteran Millard Mickey Drexler. Known for his turnaround efforts at The Gap, Drexler was brought in to revive the struggling brand J. Crew. Facing the fall in profits and sales, Drexler had his work cut out for him. He brought in the fellow Gap executive Jeff Pfeifle on board as president and the pair immediately set plans in motion to improve quality, cut costs, and reduce unpopular inventory at J. Crew. Over the next two years, seven stores were shuttered down while nine new locations opened for business. Instead of trendy fashions, Drexler focused on the basics that J. Crew had made quite popular—madras shorts, seersucker pants, and barn jackets. The company had also started offering more expensive fashion including cashmere sweaters and blazers. Inventory was kept to a minimum in an effort to avoid the markdowns, which ate into the company profits.
Several new ventures were launched in year 2005 and 2006. The J. Crew Wedding line made its debut and included bridesmaid outfits as well as the bridal gowns. Crewcuts, a children’s collection, also hit the store shelves. In addition, the company’s outlet operations went online with the creation of its website