Monday, May 26, 2014

J.Crew Says "Bonjour Paris!"

"Thanks!" to WellFedFred, who let us know about the following news from Business Week. (Click here to read article in its entirety.)
J.Crew Looks to Paris After Hong Kong for Overseas Growth (2)
By Billy Chan and Stephanie Wong
May 20, 2014

J. Crew Group Inc., the retail chain that is opening its first Asian stores this week, plans to expand its international push with outlets in continental Europe and will be scouting for locations in Paris.

The company plans to open stores in mostly capital cities worldwide to boost brand awareness, said Chief Executive Officer Millard “Mickey” Drexler. He will head to the French capital in a few weeks to look at some sites, Drexler said. The company currently has no presence in continental Europe.

J.Crew, ...has been expanding overseas and the Hong Kong stores are part of its plan to open outlets abroad this year including one in London and about four in Canada after opening three in the U.K. in 2013. The store additions come amid slower pace of annual revenue growth for the retailer that draws almost all of its sales in the U.S.

“We are looking where we see the right environment, like Paris is obviously a great city to do business in,” Drexler said in an interview in Hong Kong today, ahead of tomorrow’s opening of its first two Asia locations in the Chinese city. “The ambition is to go slow and do it well with great integrity, and not do it quickly and lose the quality control that’s critically important to us.”

...J.Crew reported in March net income fell 42 percent to $5.92 million in the fourth quarter ended February as it’s working to bounce back from an industry slump that hurt holiday sales and triggered a wave of discounting among rival retailers. Revenue growth in the 12 months ended February slowed to 9 percent from 20 percent in the year earlier, according to data compiled by Bloomberg....
I can easily see J.Crew open a store along the Avenue des Champs-Élysées. It is a super-busy street that attracts international shoppers. I would also be excited to see how they would design the store. Very exciting news! :)

What are your thoughts on J.Crew's international expansion? Do you think now is the time to ramp up international expansion? Do you think they are moving into the right cities?