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Tuesday, 9 December 2008

J.Crew News: Recession Impacts The Retailer

Posted on 06:15 by gaurav kumar
There's an interesting article at the Wall Street Journal (click here):

In Recession, J. Crew’s CEO Is Ready to Take Risks
By Jennifer Saranow

December 8, 2008

Mickey Drexler, chairman and chief executive officer of J.Crew Group Inc., says he wasn’t surprised by the recession and thinks it will take a while before the economy improves.


“We were in some kind of fantasy bubble over the last five to seven years,” he said in a speech at an International Council of Shopping Centers conference in New York, noting that the last few years reminded him of the technology stock bubble.


To survive in this environment, Mr. Drexler said shopping mall owners and retailers both need to innovate and take risks, ...


J.Crew is trying to adapt, he said, by making small investments in new concepts, implementing a hiring freeze, consolidating its direct and retail divisions, being pickier about which leases to sign and looking at lowering opening price points for its crewcuts kids line.
“I think you are going to see a dramatic change in the next couple of years in the makeup of our industry,” he said.

"Thanks!" to Lauren who let us know that there is another interesting article about J.Crew at GlobeSt.com (click here to view the article in its entirety):

J.Crew’s Drexler Doesn’t Promise Holiday Cheer
By Ian Ritter
December 9, 2008

...Apparel chain J.Crew has initiated a company-wide hiring freeze Drexler revealed, even during the holiday season, which he said falls on a terrible calendar year retail selling-wise. “If someone wants to hire someone, someone’s got to leave,” Drexler said. ...

...So did Drexler have any words of hope at all? He said that leadership is extremely valuable in this market, and he gets irritated when he walks into a J.Crew or on of its other chains and it isn’t obvious who is in charge of the store. And, ironically, Drexler, the former leader of Gap Inc. stressed that chains should temper their store growth and focus more on the quality of their products. “I’m not in a race to be the biggest or fastest,” he said. “It gets you going where your faster, not better.” ...


What are your thoughts on the articles? Disagree or agree with any points made?
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