In today’s retail environment, specialty stores J. Crew and Banana Republic play a major role in satisfying the needs of consumers who value classic, all-American pieces with subtle, trendy twists. Since both companies’ beginnings in 1947 and 1978 respectively, they have evolved to offer a wide variety of merchandise to the professional individuals that they target, in areas far beyond the realm of apparel.
Originating as a catalog company by the name of Popular Merchandise Inc., J. Crew was the preppy title given to a project that was started to deliver “Ralph Lauren on a budget,” to consumers across the country. The lifestyle-driven catalogs and merchandise became so successful that in 1989, Popular Merchandise Inc. was transformed to J. Crew Group Inc., which now encompasses J. Crew Factory and regular stores as well as their sister company, Madewell, in addition to their traditional catalog and website. Currently, J. Crew operates 283 retail stores and 143 factory stores in locations across the United States, Canada, Paris, London, and Hong Kong, under the direction of CEO Millard “Mickey” Drexler.
Banana Republic began as a family operation when American writer Mel Ziegler and his wife Patricia saw a market for safari-themed clothing constructed from unique army surplus. Their handmade garments prompted impressive profits and were eventually able to catch the attention of Gap Inc., who bought the company in 1983. Under the control of Gap Inc., Banana Republic was rebranded to offer more basic pieces to shoppers in addition to safari khakis and trend items, and today, the multichannel retailer has more than 500 Banana Republic stores in the United States alone.
J. Crew, headed by highly-creative Parsons graduate Jenna Lyons, has used the past decade to evolve from a boring, mom-like retailer to a quirky, on-trend powerhouse. Their innovation in the field of product development stems from unlikely couplings and paradoxical garments that mix sequins with casualwear, stripes and florals, and bold statement pieces. In the eyes of consumers, no other store can rival J. Crew’s embellished apparel, quality merino wool, or classic-with-a-twist accessories. This success in producing exceptional product has led to their apparel being worn by noteworthy individuals like First Lady Michelle Obama and Duchess of Cambridge Cate Middleton.
Contrary to J. Crew’s successes in the product development of casualwear and accessories, Banana Republic has thrived in the production of professional garments, more specifically, suit pairings. Through innovating texture, fabric, and color palette to otherwise classic pieces, the retailer has been able to create garments that can be mixed and matched with more casual items, driving sales in multiple classifications. Each season, both J. Crew and Banana Republic develop product that combines the basics of their customers’ favorites with trends derived from the runways of Europe.
Currently, neither retailer is performing exceptionally well, however in my opinion, J. Crew will come out of their sorrowful situation on top due to their heightened brand image and strong leadership. While both companies provide preppy-with-a-twist pieces, only time will tell who the real powerhouse is.
