Crew Group Inc. is a world renowned American specialty retailer. As of August 2016, the company has 450 points of operation throughout the United States. The retailer extended its services through catalogs and online websites. However, all these strategies might not be enough. Therefore, the company decided to refresh its own management. As a consequence, chief executive Mickey Drexler will soon be replaced.
Chief Executive Drexler Faced too Many Financial and Fashion Challenges
Crew is one of today’s retailers with quality experience that feel the impact of a new culture of fast fashion. Therefore, the apparel market turned into a stiff competition. Nonetheless, J. Crew didn’t manage to stay on top of the situation. Heavy debt loads coupled with an odd style direction that creative director Jenna Lyons pushed forward dragged the company down. As a consequence, chief executive Drexler had too many financial issues and fashion challenges to handle.
As of Monday, the company announced the departure of both Mickey Drexler and Jenna Lyons. This news comes as a surprise as Drexler managed to make quite a name for himself back days. He was behind the huge success that Gap recorded. Moreover, he managed to turn jeans and T-shirts into indispensable fashion items that are still a common presence in today’s world.
J. Crew Lost Influence by Raising
Even though J. Crew evolved as a high-end brand, it was still a challenge to other names thanks to Mickey Drexler. He wanted customers to know that he had great quality to offer at only half the price of its rivals.
However, the business became shabby. Last year, sales fell 6% while the debt amounted to a total of $2 billion. The company holds less than $150 million in cash. In a recent statement, Drexler confessed that the main mistake the retailer did was a price decision. The stores had their tag values increased at a moment when customers were becoming more aware of their expenditures due to the recession.
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