Business of Fashion: J.Crew to Launch More Affordable Line Titled Mercantile
Jenna Lyons, the chief creative officer of American specialty retailer, J. Crew has decided to launch a new child brand by the name of Mercantile. The new line will be aimed at more budget-conscious consumers, a similar offering to what patrons would find at a J. Crew Factory. Inspired by the decline of retail sales, the chain pledges to offer budget friendly products to lure in shoppers.
J. Crew filed an application on Nov. 25 to trademark the phrase for selling clothing and accessories, in both e-commerce and retail locations; according to the U.S. Patent and Trademark Office. While J. Crew’s trademark application is still pending, the agency sent a notice to J. Crew seeking additional information on the types of goods that might be covered by the trademark. The budget-concious line could assist in broadening the company’s horizon to more discount-orientated shoppers, without tampering its mainline brand itself. According to analysts at Bloomberg, the company is looking to boost sales after a rough holiday season this previous year, net income dropped to $5.92 million in J. Crew’s fourth quarter, down from $10.2 million a year earlier.
The enforcement of the J. Crew Mercantile brand, is the retailer’s latest effort to influence different segments of the consumer market. Miscalculations can be expensive, costing a company millions to exit leases. New formats can take away from sales and previous implemented marketing sales, as well as, harming the brand aesthetic in general.
“Retailers would rather cannibalize themselves than have someone else do it,” said Liz Dunn, an analyst with Macquarie Securities.
J.Crew’s Most Recent Collection Preview
Let’s hope this sister-brand from J.Crew will succeed, as it would not have the same outlet association, it would be its own brand with a full priced merchandise selection and discounts.
News reference via Wall Street Journal