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In the third quarter, comparable sales were up 4% at J.Crew and 22% at Madewell.
J.Crew has been in the process of rebranding its stores, ditching its preppy roots for the more timeless styles at Madewell.
We visited neighboring locations of J.Crew and Madewell, and saw why Madewell is thriving as J.Crew struggles to catch up.
J.Crew is being outshined by its sister store Madewell.
On November 29, J.Crew reported comparable sales were up 4% in the third quarter. Meanwhile, Madewell's comparable sales were up 22%. Prior to the second quarter, J.Crew sales had slipped for three consecutive years.
Part of why the brand has consistently struggled is that some customers see it as overpriced, generic, and even "wannabe trendy." Former J.Crew creative director Jenna Lyons left in early 2017 and was followed by longtime CEO Mickey Drexler. In late November, CEO James Brett stepped down after just 17 months.
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In September, J.Crew began ditching its preppy roots and redefining itself in an effort to win back customers by branching out beyond its iconic preppy style and offering a wider variety of styles and sizes.
It's also looking to its more successful sister brand, Madewell, for inspiration, adding products like sweaters with French slogans and high-waisted denim pieces that are more likely to be found at Madewell.
Madewell has been so successful because it knows its customer and doesn't jump on fast-fashion trends. Its focus is on good-quality, longer-lasting clothing, which have a lower price point than at J.Crew. However, when we visited both stores, the prices were about the same.
We shopped at both J.Crew and Madewell, and saw why Madewell is doing so much better:
The front of the store had a few cardigans and blouses on display, most of which were 25% off.
In the fall, J.Crew announced it would be rebranding, leaving its preppy roots behind.
But that didn't seem to be the case when we visited. There were plenty of preppy styles throughout the store.
The quality wasn't as high as I would have expected it to be, considering the high prices.
Crewnecks and hoodies cost $70...
... and sweaters started at $98.
The least expensive products in the store started around $50.
The store only had a few sizes for each style, but offered more online.
J.Crew also carried a little bit of jewelry...
... shoes...
...and a few small products like candles and face masks.
There was a denim shop in the back of the store, but most of the styles seemed pretty similar.
In the back was a kid's section...
...and a men's store was attached.
The men's store was also pretty expensive. These sweaters cost just over $60.
Overall, the store seemed to still be very preppy and pricey.
Madewell was directly across from J.Crew.
The inside was much brighter and more welcoming than J.Crew.
The prices weren't any less expensive than J.Crew, but it wasn't as preppy.
Most products were 40% off.
The colors and patterns were much quieter at Madewell.
Overall, the clothes were more timeless at Madewell. Part of its success is because it doesn't immediately jump on fast fashion trends, and it shows. Most of the styles were very simple.
It also carried a much bigger selection of jewelry,
Madewell carried a lot of smaller products like candles, water bottles, games, greeting cards, and so on. It had a lot more to offer than J.Crew.
It also sold beauty products, which J.Crew didn't. However, Madewell did not have a kid's section or a men's section.
The back of the store had accessories and shoes...
... and a wall of sale products.
If you couldn't find what you were looking for in store, there was a huge screen on the wall that allows you to order online without leaving the store, offering free two-day shipping as an incentive to do so.
Even though Madewell was just as expensive as J.Crew, the styles and quality were better at Madewell, and the store had more to offer. It's clear why Madewell is overshadowing J.Crew.
