Business Insider/Jessica Tyler Almost everything at Banana Republic was on sale.
- Banana Republic and J.Crew both appeal to working professionals by stocking classic styles with a trendy twist.
- But both brands have hit some roadblocks in recent years.
- Banana Republic's parent company, Gap Inc., announced it would be shifting attention away from Banana Republic and closing underperforming stores after the brand reported disappointing earnings in the first quarter of 2018.
- J.Crew has continued to struggle, with sales dropping for a third consecutive year.
Banana Republic and J.Crew both target a similar set of customers: working professionals drawn to classic styles with a trendy twist.
But both brands have had their struggles in recent years.
In the first quarter of 2018, Gap reported a same-store sales growth of 3% for the Banana Republic brand. It was the first quarter in several years that the Banana Republic brand saw growth. It has long been seen as Gap Inc.'s weak link, in part because its styles tend to have a higher price tag than the company's other brands. In late 2017, Gap announced it would be shifting focus away from its namesake brand and Banana Republic in favor of the Old Navy and Athleta brands. 200 underperforming Gap and Banana Republic stores are set to close by 2020.
J.Crew has also suffered from a customer perception that its prices are too high for the quality of its clothing. In the first quarter of 2018, comparable sales decreased 6%. This is the third consecutive year that sales have decreased for the brand, as it's lost favor with some customers because it's seen as overpriced, generic, and even "wannabe trendy."
We visited Banana Republic and J.Crew to see which store we thought was better. Here's what we found: