Analysis: Will J Crew’s unusual property strategy charm UK shoppers?

J Crew has unveiled its plans to enter the UK via three London stores opening in October and November, with a flagship on Regent Street, a womenswear boutique in Brompton Cross and a menswear store on Lamb’s Conduit Street.

The US fashion giant is already selling in the UK via etailer Net-a-Porter, but its first standalone UK stores are eagerly anticipated.

London has long proved an enticing location for US brands and many including American Apparel and Urban Outfitters have enjoyed popularity in the UK.

However, it has not proved the Promised Land for all American retailers – Forever 21 scaled back its expansion due to the depressed economy after initially targeting 100 stores on entering the UK in 2010, while Gap’s popularity has arguably waned in recent years.

One of J Crew’s strengths is that it has always been savvy in getting the right people spotted in its clothes and this is something the brand will aim to replicate in London. US First Lady Michelle Obama and actress Katie Holmes are among those to have been pictured in J Crew attire.

J Crew has also cleverly tapped into London’s fashion scene to create a buzz around its British entrance. The retailer opened a pop-up store for two days in May in Kings Cross outside prestigious fashion and art school Central Saint Martins College of Art and Design.

Along with plans for collaborations with students from the school, for the next three years J Crew will offer one annual scholarship for Central Saint Martins as it appeals to London’s trendsetters.

Planet Retail senior retail analyst Isabel Cavill says persuading British shoppers its quality justifies its pricing is important amid the current economic climate.

Cavill believes that a significant marketing campaign to swipe shoppers from upmarket rivals Jaeger, Whistles, and Reiss - as well as clothing retailers that put an emphasis on quality, including Marks & Spencer - will be in order.

J Crew has selected Regent Street for its British flagship store, sticking to a traditional location for its largest shop which guarantees strong footfall. This will be a necessity considering prices are expected to be higher than in the US, a strategy which backfired when consumers complained over a 50% hike in pricetags at its Canadian stores in 2011.

Brompton Cross too appears a sensible choice. The west London location will attract high-end shoppers to its premium offer.  

J Crew’s property selection for its menswear store is perhaps the most intriguing element of its strategy. Advised by property agent Harper Dennis Hobbs, the retailer has opted to call its menswear store 38 Lamb’s Conduit. It is due to open on October 10 and the decision to use this experimental fascia shows invention from Mickey Drexler’s business and a willingness to test the boutique market.

Although the choice of location has raised eyebrows as it is a street bereft of big brands, it could be an appropriate area to trial the store specialising in shirts and J Crew’s Ludlow Suiting brands such as Thomas Mason, London Undercover and Begg & Co.

With a heightened buzz and anticipation surrounding the opening of the new stores, all eyes will be on J Crew to see if it can muscle its way in to the competitive fashion market and make its affordable luxury proposition a must-have in the capital.