J. Crew Competition
Now Viewing J. Crew's competition in: Specialty Retail (primary)
Call Preparation Questions
Customers, Marketing, Pricing, Competition
What demographics does the company sell to? Is this a growing segment of the population? - Many retailers target specific demographics. Mature market segments can also be lucrative.
What is the typical purchase amount? - This varies according to the type of merchandise and the market segment, but most retailers watch this amount carefully.
How are merchandising decisions made about specific items to sell? - Senior executives are often intimately involved in merchandising decisions.
Does the company do its own market research on customers and products? - Many companies hire market research firms or survey their own customers about product preferences.
Does the company price products with specific competitors in mind? - Companies may consciously price over or under a specific large competitor.
Does the company have regular sales or price markdowns to move old inventory? - Sales are frequent in the apparel business.
Who are the retailer’s major competitors? - Competitors can be other specialty retail stores, discount retailers, or department stores.
What types of advertising does the company do? - Print, radio, TV, special events, and direct mail are all used by specialty retailers.
How large is the advertising budget? - Aside from purchasing, this is usually the largest expense.
Competitive Landscape
Demand for many specialty retail goods is driven by gains in consumer income. Large competitors can offer lower prices because they buy in quantity. Small retailers can compete with large ones by offering different merchandise or providing a higher level of service. Despite the presence of some large chains, specialty retail markets are highly fragmented. Barnes & Noble, for example, with over 900 stores, is the largest US bookseller but has a market share of only about 15 percent.
Business Challenges
CRITICAL ISSUES
Retailer Revenue Tied to Job Growth - Job growth and personal income help determine consumer spending, all indicators of retail business growth. Retail sales grow rapidly during periods of strong economic growth, as consumers spend a greater share of their income and increase the amount of debt they carry. Specialty retailers, precisely because they specialize in only one type of merchandise, may be disproportionately affected by economic fluctuations.
Competition from Mass Merchants - Mass merchandisers like Wal-Mart and shopping clubs like Costco provide strong competition to specialty merchants by effectively creating large, low-cost specialty departments within their superstores. These stores can sell a wide range of popular merchandise at low prices because of the large volume of business they do.
Industries Where J. Crew Competes
- Retail
- Apparel & Accessories Retail(primary)
- Nonstore Retail
- Catalog, Mail Order & Television Sales
- Internet Retail
