Business Analysis of J. Crew Inc. Essay

2069 Words 9 Pages
J. Crew, also known as J. Crew Group Inc., is a private label company known for its preppy fashions that are fashionable yet costly. Essentially, the company was owned by the Cinader family for most of its history. Mitchell Cinader and Saul Charles founded the company in 1947. It was originally known as Popular Merchandise Inc. doing business as the Popular Club Plan, in which Mitchell’s son Arthur was the overseer. The company sold women’s clothing through in-home demonstrations. In the early 1980’s, Cinader and Charles observed catalog retailers such as Land’s End, Talbots and L.L. Bean reporting rising sales in revenue. With intentions to increase sales and duplicate success of these well known companies, Popular Club Plan began its …show more content…
Specifically, how it hangs and drapes, and also how it could be coordinated with a variety of clothing and accessories. J. Crew also incorporated close-up snapshots of the fabrics used to produce the garments to help authenticate the quality they claim to be (http://www.fundinguniverse.com/company-histories/j-crew-group-inc-history/).
Throughout the 1980’s, revenue from J. Crew’s catalog increased, along with the catalog industry in its entirety. J.Crew continued to improve its presentation and increased the number of consumers receiving the catalog. The company’s growth was emerging 25 to 30 percent a year. J. Crew’s annual sales increased from $3 million to more than $100 million in over five years. With J. Crew’s success with their first catalog operation in 1985, the company releases its second catalog (http://www.fundinguniverse.com/company-histories/j-crew-group-inc-history/). As a result, J. Crew will be the new retail powerhouse.
Soon after J. Crew became the million dollar company, many sought to buy out the company because of all the success the company brought to the industry. The journey of J. Crew’s growth as a retail powerhouse was very inspiring. Surprisingly, shareholders nearly rejected a private buyout of the company by TPG Capitol and Leonard Green & Partners, who was worth $2.86 billion, because they were displeased with the CEO Mickey Drexler. They believed they

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