Comment: J Crew’s flagship must reflect its enhanced premium positioning

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Following a low-key entry into the UK in October with a menswear-only store, J.Crew is opening its flagship on Regent Street to much greater fanfare.

Following a low-key entry into the UK in October with a menswear-only store, J.Crew is opening its flagship on Regent Street to much greater fanfare. With anticipation rising, along with its prices, J.Crew will need to work hard to justify its premium to luxury positioning – ensuring it is accessible enough to aspirational shoppers and yet exclusive enough for more affluent consumers.

Though prices are reported to be 60% higher in the UK than in the US, UK shoppers familiar with J.Crew will already be well aware of its inflated prices having had access to its ranges via its website and Net-a-Porter. While repositioning the brand as more premium may be necessary to recoup the costs of entering the UK market, like other US brands that have raised prices in the UK, J.Crew will now have to work extremely hard to satisfy consumers in terms of quality, instore environment and customer service. The brand received significant backlash in Canada for hiking prices by 15%, and while we do not expect the inflated prices to limit its success in the UK market, J.Crew must showcase value for money.

The US retailer is now tasked with not only justifying its high end prices to consumers, but also setting itself apart from premium competitors such as Whistles, Reiss and Ted Baker and luxury players Paul Smith and Ralph Lauren. J.Crew’s higher prices have allowed it to sit between these premium and luxury brands, filling a gap in the market that will encourage premium shoppers to trade up and lure in luxury shoppers with its keener price points. Its emphasis on quality, sharp design detailing and incorporation of fashion trends will also provide a source of differentiation.

While Regent Street guarantees J.Crew high footfall, it also brings neighbourly competition, with the likes of Apple and Burberry already setting a high standard for innovative store environments and retail theatre. J.Crew therefore has its work cut out to live up to consumers’ expectations and build destination appeal, ensuring shoppers make repeat visits.

For its flagship, J.Crew will need to create a much grander store environment to suit its premium location, in contrast to its menswear store in Bloomsbury, which has a more boutique, under the radar feel. Eye-catching window displays, easily navigable store layouts and approachable staff are crucial to enticing customers instore, while highlighting the brand’s quirky personality is imperative. The recent 3D installation of London taxis on its façade is an exciting indication of what could lie in store for shoppers.

Chairman and CEO Mickey Drexler has stated that J.Crew is a ‘designer business’, ensuring the brand will be seen as aspirational by the majority UK consumers. However, without the rich heritage of a luxury brand such as Burberry, J.Crew’s appeal may be limited to more affluent shoppers and high-value spending overseas visitors if it does not showcase its quality and service credentials with a unique store experience to build its appeal among less affluent consumers.

While J.Crew looks set to cement its successful entry into the UK clothing market, bridging the gap between premium and luxury sectors can be difficult to achieve; however, the brand is well positioned with its strong product offer, providing its flagship store showcases its ranges and the brand’s authority on style.