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Archive for the ‘Branding’ Category
Outfitting Your Daughter as “Mini-Me” at JCrew
JCrew has had quite a turnaround in its business over the last few years. Hot in the late 1980s and early 1990s, the company went through a rough patch and now has emerged hot again.
The clothing isn’t cheap. It’s the Gap times two. But somehow they’re able to dress both college kids, 20-somethings and 30-somethings all at the same time- as long as those customers have the budget for it.
Betting that moms want their kids to be just as fashionable, the company started a child’s clothing line only a few years ago called “Crew Cuts.”
It will be interesting to see if JCrew can make it work because Talbots just announced it was discontinuing both its kids line and its men’s line. Talbots has had the kids line for quite sometime- much longer than JCrew has been trying it. From DMNews:
“This is a very important strategic move that will greatly contribute to our ability to focus and reinvigorate our core brands and provide sustainable long-term shareholder value,” said Trudy F. Sullivan, president/CEO of Talbots, in a statement. “By exiting these concepts, we can focus exclusively on our company’s core strength — the age 35-plus female market, where we believe there is significant opportunity for profitable growth in both our Talbots and J. Jill brands.”
The company will close approximately 78 stores throughout the US as a result of this decision, including 66 Talbots Kids and 12 Talbots Mens stores.
I really noticed the Crew Cuts line in this Spring’s catalog. Before, it was just a few pages, but this time it was 10 or more pages.
And I noticed something interesting that I hadn’t picked up on before. The girl’s line is nearly identical to the women’s line. Maybe this is how they’ll keep it profitable. Make the same exact clothing, only in smaller sizes. That way, you won’t need two different design teams.
Brilliant!
Think I’m kidding?
Check out these examples.
Here are some lovely silver and gold ballet shoes. (Ballet flats are really in for women again this year.)

Only these are from the girl’s catalog. Price? $128.
Yes, I routinely buy 7-year olds $128 shoes.
Want something cheaper? How about these Clea ballet flats with cotton and leather uppers. Made in Italy.

They’re “only” $84.
Do they look any different from the women’s ballet flats? These are also made in Italy.

Price for the women’s flats are $118.
Shoes are one thing. Because both 35-year old women and 8-year old girls might wear ballet flats.
Let’s say you want to wear the exact same mini-skirt as your 8-year old. You can!
Here’s the Coppelle Paisley Mini Skirt for girls:

This is $54. And every girl under 10-years old MUST have the paisley. It’s so “in” this season.
Mom can have the same skirt.

Mom’s version costs $75.
Am I the only one who is disturbed by this?
Customers can literally buy the same outfits for their 8-year olds as they are wearing themselves (same sweaters, same skirts, in some cases similar dresses.)
I was initally disturbed by the cost of these products (who buys their kid a $54 skirt?) but upon closer examination, the fact that they are identical products, just “mini-me”, is creepier.
The Crew Cuts line is aimed at kids aged 2 to 10.
I didn’t even get into the JCrew Cashmere line for girls. Cashmere shell is $82. Cashmere cardigan is $118.
Who is buying cashmere for a 5 year old?
I know, I know. There is a certain segment of the population that pays these prices. There is, after all, a reason that Neiman Marcus exists. But JCrew isn’t Neiman Marcus. Yes, it’s slightly higher end. I’m not saying its Old Navy.
What do you think the odds are of the kid’s line being a success?
Maybe I’m missing something…
Check it out here at JCrew.com.
Is Target a “Threat” to Whole Foods?
There is no doubt that Target is “hot” among a certain segment of affluent shoppers who buy Isaac Mizrahi pants and other “designer” merchandise.
Target’s target audience is the $55,000 to $75,000 income range.
Two years ago, Target started moving in on the organic food market with its Archer Food line, which included whole-grain pizzas and pastas, among other items.
All of Target’s SuperTarget produce departments are now organic.
I recently read an interview with a big investment manager where he said that Target was now a threat to Whole Foods because the rich would simply shop for their organic items in Target.
Where have I heard that before?
Oh yeah- when Safeway was a “threat”.
How about Supervalu and its Sunflower Markets- which the company just shut down?
And remember, Wild Oats? Whole Foods finally bought them last year after kicking their behind for years.
Yes, Whole Foods is pricey (people don’t call it “Whole Paycheck” for nothing.) But what they do, they do right.
They offer tremendous selection and those products are always in great condition.
Whole Foods is an “experience.” Shopping at a massive SuperTarget? Not so much.
I’m not saying Whole Foods isn’t without any chinks in its armour. The company has seen its growth slow in recent months. But it is mainly still an American grocer. The company has only six stores in Canada and six in the UK.
That leaves a large chunk of the world available for expansion. Like Starbucks, don’t count out Whole Foods.
Whole Foods Crushes SuperValu’s Sunflower Markets
In November 2006, I wrote a post called “Sunflower Markets: A threat to Whole Foods?” about SuperValu’s foray into organic retail.
The answer to that question now is: No.
SuperValu, one of the largest supermarket chains, just announced it was closing its five Sunflower stores across the country, including the one in Chicago’s Lincoln Park neighborhood.
The thing is: they just couldn’t make any money.
From the Chicago Sun-Times:
Sunflower Market was “an innovative approach” to try to meet the popularity of natural and organic foods, but it wasn’t profitable, according to Supervalu’s statement.
“Sunflower Market provided us with a tremendous laboratory for learning about the growing natural and organics market,” according to Supervalu’s statement.
I actually really liked the store in Lincoln Park. It was easy to get to and had a big parking lot.
From my original review of the store which I described as “bright and cheery inside”:
I think this chain will do very well for Supervalu. It may not compete directly in some upscale markets however. I asked the woman at the cash register whether it was always that quiet in the store (as there were only maybe 20 people in there besides me) and she said it picked up later in the day. I would have to go back and observe it on a Sunday afternoon to see.
Supervalu hasn’t really advertised the new market much. I only learned about it when TimeOut Chicago did the comparison. I think Whole Food shoppers don’t even know it’s out there yet.
SuperValu intended to open up 50 of the stores over the next five years. What went wrong?
Their prices were lower than Whole Foods. But I noticed that they never once advertised in the Chicago market. Who knew that the store even existed? Apparently not enough people.
And maybe brand had a lot to do with it. You can paint the stores sunflower yellow and make them “cheery” but that doesn’t mean they’re Whole Foods or even Trader Joes. In Chicago, there was a Trader Joes less than a block away. Same with Whole Foods.
SuperValu found out why Whole Foods is so good at what they do and why Wild Oats ended up being acquired.
It’s harder than it looks to run organic supermarkets.
Customer Service Still Matters: Von Maur
Von Maur is a family owned Midwest based retailer that reminds me of Nordstroms (but not quite as “upscale.”)

Founded in Davenport, Iowa in 1872, they have 22 locations mainly in Midwest states (Illinois, Iowa, Ohio, Indiana, Michigan, Minnesota, Kentucky, Kansas and Nebraska).
Like Nordstrom, they have live piano music in their stores (although Nordstrom has now apparently ended that tradition because they said their customers thought it was “old-fashioned.”) They have a great shoe department with shoes you normally don’t see in other department stores. And they are well-known for their customer service.

I encountered this first hand over the weekend.
I went to the Von Maur in the Yorktown Mall in Lombard, a western suburb of Chicago. I was hunting for after Christmas bargains at the Carson’s in the same mall (Carson’s is a department store in the same vein as Macys). I went to Von Maur to check out their boots - to see if anything had gone on sale yet. Von Maur doesn’t have the crazy “door busters” and other sales like the big retail chains.
Lo and behold, some of their boots were marked down. Even the ritzier brands.
A pair of black dress boots I had been eying for months was now on sale so I told the salesman my size and waited. When he emerged with my boots, alas, he didn’t have my size. But they ran “small” and so I tried on the boot that was a half size bigger.
But I knew they weren’t right immediately. They were too big.
Then the salesman offered: “I can check our other stores and see if someone else has them in your size.”
“Great,” I replied.
These boots rarely went on sale so I thought what the heck. I wasn’t too hopeful though.
But lo and behold- ONE store had ONE pair of them left (out of 22 stores.) The salesman called the store to have a salesman there go into the shoe “back room” and make sure they were really there (as sometimes the computer inventory isn’t correct.) But they were!
One pair of the boots in my size remained.
“We can ship them to you from this store,” the salesman offered. “Free of charge.”
Free of charge???
“UPS Ground. You should have them within a week.”
It was a no-brainer! I took the phone from the salesman and told the salesman at the other store who had the boots my address and gave him my credit card number. That was that.
And then I waited.
They had told me it would take a week.
But no.
Within 3 days the boots were sitting in my building mailroom. Only THREE days!
All FREE OF CHARGE.
What great service. Who does that these days? I will be shopping at Von Maur again. You can count on it.
Von Maur is apparently looking at expansion possibilities on Chicago’s Mag Mile or State Street (as they have 6 stores in Illinois, but none within Chicago.) I welcome them to the City with open arms.
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