“I want Crew Clothing to become the Ralph Lauren of middle England.” It is a bold and ambitious statement from Crew’s chief executive David Butler, who has led the business since 2017 and has grand designs to grow it into the “most successful mid-market player” in UK fashion.
His strategy to achieve that lofty aim includes partnerships with sporting events and third-party retailers like John Lewis and Next, expanding its store estate to almost double its pre-pandemic reach, and refocusing on core product lines such as outdoor wear and polo shirts.
Unlike many of its fashion rivals struggling in the face of the cost-of-living crunch – the swing to a loss by former City darling Asos just last week punctuated the sector’s current travails – Butler has reasons to be optimistic.
In its results for the year to December 26, 2021, Crew’s EBITDA surged 80% to £16m as revenues rose 40% to £82.7m.
Crew has taken that trading momentum into 2022, with sales during September up 17% compared with the same month a year ago.
At a time when competitors such as Joules have called in advisers to help shore up finances and even fashion bellwether Next is warning of uncertain trading conditions over the coming months, Butler is bullish about the future of the clothing brand as it prepares to celebrate its 30th anniversary.
Smaller is better
Since starting life in Salcombe, Devon, back in 1993, Crew Clothing has focused its expansion plans on market towns and coastal havens, drawing in locals and tourists alike.
Unlike many of its rivals who are seeking prime flagship sites to build their brands and attract new shoppers, Butler remains keen to avoid bigger shopping destinations such as malls and major cities, focusing instead on the areas where its core customers – affluent middle-aged and millennial shoppers – are situated.
“The key differentiator for us versus a lot of other retailers is that we don’t have any exposure to big cities,” he explains.
“Generally, we don’t trade in your typical ‘tier-one’ shopping malls like the Trafford Centre or Meadowhall – we concentrate very much on where we know our customer is.
“This means commuter towns, nice market towns and seasonal locations. Add all of them together, and combine it with our online business, and we have some good exposure.”
During the coronavirus crisis, Crew grew its store estate by more than 20% – and Butler insists it is not stopping there.
The retailer now trades from 101 stores, up from 80 pre-pandemic, and aims to open “30 to 40 more stores” with a focus on staycation hotspots and locations outside its southwest heartland.
“I’d be lying if I said I had a specific number that I’m trying to get to, but the one thing that we are absolutely crystal-clear on is that there’s still a huge amount of headroom and potential within the UK for us to aim at,” Butler says.
50/50 split
Getting the balance right between physical and digital sales – and across genders in its customer base – has been crucial to Crew Clothing’s growth trajectory, Butler adds.
“When I came into Crew in 2017, it was predominantly a business that relied on shops on the high street and had a very small online mix, and almost zero wholesale business,” he explains.
“At the end of 2022, our mix is 50/50 in terms of stores versus online – and we also have a pretty unique proposition, which is the 50/50 gender split”
David Butler, Crew Clothing
The retailer’s sales are now split 50/50 split between stores and online – its ecommerce division also includes sales made through wholesale agreements with the likes of John Lewis, Next and Very, a growing stable of tie-ups that Butler is keen to build further in the future. Prior to the pandemic, that growing online arm accounted for just 30% of the retailer’s total sales.
“It didn’t have any real development in terms of the size of its collection and what we offered to the customers, but as we are here today, at the end of 2022, our mix is 50/50 in terms of stores versus online – and we also have a pretty unique proposition, which is the 50/50 gender split as well.”
Butler compares Crew to the likes of Joules and Fat Face, retailers whose sales lines are more reliant on female shoppers. He argues that having a 50/50 split in its customer base helps to “de-risk” the business as it has an appeal to a larger potential market – and with a childrenswear collection, too, it can appeal to the whole family.
Quintessentially middle England
But with those aspirations to become “the Ralph Lauren of middle England” in mind, Crew is building brand awareness through partnerships with third-party retailers and sporting events in order to access a broader customer base.
Crew works with Henley Royal Regatta, The Lawn Tennis Association, rugby union club Exeter Chiefs, the Professional Cricketers’ Association and Formula 1 team Williams Racing – a marketing push that aligns it with luxury sponsors such as Rolex, Moët & Chandon and Bremont, and delivers brand exposure to 11 million potential shoppers.
During the cost-of-living crisis, Butler says such associations have helped Crew win customers from the likes of Ralph Lauren and Hackett. The retailer says that customers acquired as a direct result of its sponsorships spend on average 35% more, shop 26% more frequently and are 10% more engaged with the brand.
“People are making a conscious decision maybe not to spend the price that is seen for some of the higher brands but get the same level of quality and style from us”
David Butler, Crew Clothing
“We’ve established a nice collection and a good price point with good quality, but our association with Henley, Formula One and Queen’s [Club Championships grass-court tennis] has resonated with our customers,” Butler explains.
“In the current climate where there are challenges for people’s disposable income, then I think people are making a conscious decision maybe not to spend the price that is seen for some of the higher brands but get the same level of quality and style from us.
“I think that’s part of the reason why we’re seeing these results.”
If Crew can maintain such momentum, its transformation into “the Ralph Lauren of middle England” may prove to be more than just an aspiration.
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