News Article On J.Crew's Sample Sale

There is an interesting article at Crain's New York Business (click here) about J.Crew and it's sample sale (refer to here):

J.Crew, A Sample-Sale Virgin No Longer
By Adrianne Pasquarelli
January 13, 2009

In yet another sign of troubled times for retailers, clothier J.Crew Group Inc. is holding its first ever sample sale beginning next Tuesday. Like many stores, the company ended 2008 with excess inventory and is making strides to get rid of such merchandise, even if it means lowered profits. At this point, retailers need to clear stores of winter merchandise to make room for the new spring styles.

Experts say the excess inventory may even be too much for retailers such as J.Crew to sell at factory stores, which are already stuffed to capacity. Many factory stores carry clothing lines made specifically for them, so sending them unsold garments from regular stores is not an option.

Instead, J.Crew has turned to one of Manhattan’s sample sale operators, Clothingline in the Garment Center, to market its wares for up to 70% off the original retail price in a five-day event.

“They can’t carry it over, they have to get rid of that inventory at any price,” said Bob Grayson, founder of retail consultancy the Grayson Co. “They have more than they could pass on to the outlets.”

He noted that this could be a trend. Other retailers, such as women’s clothing store Calypso, have flushed their merchandise to sample sales for the first time over the last few weeks. Mr. Grayson also said that one high-end retailer, who he was not at liberty to reveal, is planning a major warehouse sample sale event.

What are your thoughts on the article? Do you think this is a new trend? Do you think J.Crew sponsored "sample sales" are something that J.Crew should pursue more often?