J. Crew to launch new store concept

New York -- J.Crew Group, a company struggling to regain its mojo, is jumping into the value category.



The company announced it will launch a new store banner, J.Crew Mercantile, selling lower-priced (“value-driven”) merchandise with classic J. Crew styles for women, men and children. The first J.Crew Mercantile store will open in late July, at The Shops at Park Lane in Dallas. The retailer plans to open more Mercantile stores in strip centers and some malls, Bloomberg reported.



The move comes as the once high-flying fashion retailer is working to turn around its namesake brand. After a dismal 2014, J. Crew’s total revenues decreased 2% in its first quarter, to $581.8 million from $592 million in the year-ago period. Same-store sales fell 8% on top of a 2% decrease last year. The company let go its lead women’s designer and 175 corporate employees in June.




The Mercantile collection was available previously in J. Crew Factory stores, but it will now will also be in the dedicated Mercantile stores. As to how the two store concepts will differ, J. Crew isn’t talking.



Speculation about J. Crew Mercantile has been building for some time. The company filed an application in November 2014 to trademark the phrase for selling clothing and accessories, both online and in retail locations. And in May 2014, the Wall Street Journal reported that J. Crew planned to use the name to create a chain targeted at budget-minded shoppers.



J. Crew CEO Mickey Drexler is no stranger to the value category. He launched Old Navy while he was head of Gap Inc.