Tuesday, January 13, 2009

News Article On J.Crew's Sample Sale

There is an interesting article at Crain's New York Business (click here) about J.Crew and it's sample sale (refer to here):

J.Crew, A Sample-Sale Virgin No Longer
By Adrianne Pasquarelli
January 13, 2009

In yet another sign of troubled times for retailers, clothier J.Crew Group Inc. is holding its first ever sample sale beginning next Tuesday. Like many stores, the company ended 2008 with excess inventory and is making strides to get rid of such merchandise, even if it means lowered profits. At this point, retailers need to clear stores of winter merchandise to make room for the new spring styles.

Experts say the excess inventory may even be too much for retailers such as J.Crew to sell at factory stores, which are already stuffed to capacity. Many factory stores carry clothing lines made specifically for them, so sending them unsold garments from regular stores is not an option.

Instead, J.Crew has turned to one of Manhattan’s sample sale operators, Clothingline in the Garment Center, to market its wares for up to 70% off the original retail price in a five-day event.

“They can’t carry it over, they have to get rid of that inventory at any price,” said Bob Grayson, founder of retail consultancy the Grayson Co. “They have more than they could pass on to the outlets.”

He noted that this could be a trend. Other retailers, such as women’s clothing store Calypso, have flushed their merchandise to sample sales for the first time over the last few weeks. Mr. Grayson also said that one high-end retailer, who he was not at liberty to reveal, is planning a major warehouse sample sale event.

What are your thoughts on the article? Do you think this is a new trend? Do you think J.Crew sponsored "sample sales" are something that J.Crew should pursue more often?

64 comments:

  1. I have never been to any sample sale, but I wish I could attend this one. I wonder why they don't want to get "rid" of their items through their website? I also wonder how old some of their items will be?

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  2. Actually, I went to a JCrew warehouse sale back in the early 90's, before Mickey took over, and long before they started the outlet stores. This sale was in an abandoned store near me. I still have a few of the things I bought that day.

    It was push and shove, and I imagine that this sale is probably going to be much of the same. Still, I would love to go since I only live about 3 hours from NYC.

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  3. They could very easily get rid of their excess inventory--extra 50% markdowns online!!! I supposed they wouldn't do this b/c they don't want the masses to expect this and a sample sale can be done on the DL to the rest of the country.

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  4. I'm looking forward to hearing about it from fellow JCA's. If it's worthwhile, I'll plan a trip to NYC at the time of the sale next year. We go a few times a year anyway so may as well add in some JCrew fun.

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  5. I would love more J Crew sample sales! How about bringing them to other parts of the country besides NY? I'm not anywhere near NY so I'd be very interested to hear how it was from other aficionadas!

    I've been to a few non- J crew sample sales before and it is hit or miss- racks and racks of things of all different sizes. But when you find a hit, its exciting!

    Sometimes the dressing rooms lines are very long, so people try things on outside the dressing rooms- so wear clothes that you can try things on over them and not feel self conscious.

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  6. The terminology of "sample sale" seems misleading - I always thought sample sales were to get rid of (as someone mentioned in another post) the clothing used for photo shoots, one-offs created by the designers, and other random clothing "samples" that they had no other place to sell.

    Like Anon 8:35pm, I also attended a warehouse sale in the late 90's - at Vets Memorial I think, and that was where they sent all the excess overstocked inventory to get rid of it.

    Which brings me to a whole other tangent: why on earth have they created a whole line of clothing specifically for the outlet stores? Outlets used to be for seconds and...excess inventory. Or a place to pick up leftovers from last season. Whatever happened to that philosophy? Nevermind that every time I step into a J.Crew outlet I'm shocked that the prices are so close to the real J.Crew. I'd rather just wait for a sale and the real thing (and better quality).

    Anyway, I'm jealous of those who get to attend this "sample sale" - I can't wait to check out eBay later on in the week to see if any "special items" show up there. :)

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  7. This says that they are getting rid of winter inventory, but the ad says spring merch. Which is it?

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  8. I know I went to a JCrew warehouse sale years ago.
    I believe it was at a highschool or gym in New Jersey.
    Burbury had one at Woodbury Commons a few months
    ago. People were stripping in the aisles. I don't do well in those environments, it's chaotoc and the clothes get demolished quickly. I would buy now online
    if they offered the 20 percent off plus free shipping, even though I already have many winter items I haven't worn yet. I also wish they had a 14 day sale return policy. I would love the Crawford blouse, but I have no idea what size to order.

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  9. Rats on Parade- That is exactly why I have stopped visiting outlets. I get better deals on better quality clothing at my B&M!

    I am curious though, are JC factory stores carrying more regular store clothes now due to their excess inventory? Is it worth a visit?

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  10. RatsOnParade, I always thought the rise in outlet-only clothing was due to the increase in outlet malls, which are a destination for many. Retailers don't want to miss out on the outlet phenomenon. I have a couple of friends who are die-hard outlet shoppers and plan trips to large outlet malls for vacation. I don't understand it myself. Been to J.Crew outlet once while visiting Napa Valley and it was pretty much a bust.

    I am curious to see what happens to outlets as the economy changes. Will they increase in popularity or will they tank...?

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  11. I'm going but honestly all the press this is getting makes me almost not want to. It will be insane.

    Keep in mind, though, that is NOT a sample sale. This is a "we sent these stores too much of a XS and an XXL Seafoam Broken-In Polo which didn't sell after 50 and 60 % off sales and were sent back" sale. In case you are from out of town, there is a HUGE difference.

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  12. Thank great post. I just put your blog "add to favourites" to read more in the future

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  13. gosh they should just save themselves the trouble and sell all their stock for 70% off online. that way they dont have to rent the place, pay for the services, pay for organizing the event etc etc. Wrong move!

    CECE

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  14. Never been to a sample sale; would love to hit this one :-)

    Just got my hands on the Spring 2008 Look Book. Only taken a peek so far, but saw some beautiful clothes!

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  15. Drat. If it's overstock, I wish they would have put it online.

    For those of you lucky enough to attend, have fun and let us know how it goes!

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  16. Want to go so badly!II It's like getting an access to a treasure chest- X-mas all over again! I am sure there would be fabulous finds and deals. Pushing and shoving is the only turn off. Whoever goes- have a fantastic time and please, report back , we can at least enjoy your purchases vicariously.

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  17. I agree with 8:36 anon. If they wanted to get rid of excess inventory, run a 50% off the website sale. Look at how many orders they got with HOHOHO & JINGLE. Include flat-rate $10 shipping - I'd be willing to pay that if I got any sale item at extra 50% off.

    Excess inventory problem solved!

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  18. i will be there on tues! a couple questions, does anyone know if we can use our jcrew cards? if it is really being run by an outside vendor im thinking they may not take them.
    also, this may be wishful thinking, but any thoughts on whether the student discount will apply?? i've actually been one of the few to have luck with getting it applied to the "extra X% off sale" stuff, so i'd love to get it to work at the SS.

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  19. Not sure if I'll go. If it starts on Tuesday and I go on Saturday, what's the point? I'm sure all the good stuff will be gone by then.

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  20. Anonymous 9:04, I found the Crawford blouse fits TTS. Plan to wear a matching tank underneath. I have it in black (size 4) and recently ordered another one in bright berry.

    I agree with others who also said, why not put the overstock items online with further reductions? The internet is a much bigger market than NYC. :)

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  21. hell yes it is. Let's start a class action lawsuit against J.Crew for discriminating against everyone not in NYC in making excess inventory available :-)

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  22. anon 10:15, I would guess more stuff will be made available each day as stuff gets cleared out. I imagine they must have container loads of excess inventory if they're running the sale for six days.

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  23. Anon: Sample sales normally don't accept credit card from retailers unless they are co-sponsored by visa or amex or MC... like, the BR card. Some sample sales don't even accept cards so go prepared with a check or cash just in case. I dont know what clothingline's rule is. Also... it is cheaper to run a sample sale than even sell through their warehouse, because there is no overhead for J.Crew

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  24. I doubt this company is selling the stuff for free for j.crew.

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  25. not for free... but for very little... I believe clothingline takes a percentage of the profits... not sure though.

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  26. I will be attending this on Saturday (I hope everything isn't gone by then!!) I don't know what to expect (well, crowds obviously) but it's right after midterms so I'll have something to look forward to.

    Also I am planning on going to Madewell for the first time after visiting the Sample Sale. I don't know what to expect there either; I got an email stating that sale prices were %40 off, but I don't know how long that lasts.

    I'm crossing my fingers for some good deals!!!

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  27. For those who have attended or will be attending this sample sale, do you know what is considerered "early" in terms of going there on the first day? I know it opens at 10am...does that mean I have to be in line by 9am or something absurd as 7am?

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  28. right, so if they take a % of the profit, there's really no way to know just how much this is still costing j.crew. Under any circumstance, the stuff has been collecting dust in the warehouse, while a lusty online sale would have cleared it out.

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  29. i think costs is probably why they are only pulling one sample sale in NY as online inventory management could be too much hassle when the clothes are not even on the website anymore. JCAs in NY please take the chance to shove and share with us!
    -Kira

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  30. some of those excessive inventory are defective items we returned, but jcrew does not want to throw them away. Every year, they have this kind of sale in virginia tech. You have to rather carefully check the clothes you pick.

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  31. I went to a J.Crew warehouse sale in Manhattan in 2002. Went on the first day and the selection and deals were amazing. I think I got 13 items including a pea coat for around $100. Coats were going for around $25, including the long, double cloth ones. I still kick myself for not picking up more coats! It was busy but early in the day it wasn't so crazy you couldn't look through things and try them on over your clothes. Most of the stuff was recent past seasons with a small selection that was older stuff.

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  32. A few tips, go early and avoid the lunch hour 11:30-2 and immediately after work 5:30 close. the crowds will swell and slow down shopping and checkout. On checkout, they take major CC's & cash no JC gift cards, discounts, etc. don't bring a lot with you(huge handbags, other shopping etc.)coat/bag check at SSS can be horrendous and I expect it will be for this. The crowds are hard to judge, i don't see this appealing to the hard core sample sale crowd the way some of their brands do paired with crazy economy around here. If my reading of J. Crew's tea leaves is correct, there should be a ton of spring/summer stuff they'll be looking to unload.

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  33. KatherineD- I visited Madewell for the first time on a trip up to the Natick Mall in MA a few weeks ago. I was not impressed. It kind of has an Urban Outfitters vibe, which (usually) does not appeal to me. Plus the store was really really really picked over!

    The Natick store is small, so maybe the NYC store will be larger and better stocked. Please let us know how it is.

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  34. Ah pushing & shoving. What I'm the best at. Well, I think I'm a shoe in to win this one.

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  35. Yes, please share if you're able to go. :) I'm curious as to what they'll have there (and for how much they'll decide to let it go!)

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  36. At virginia tech sample sales, first a couple of days things will be more expensive. Each day later, they will reduce those unsold. Coats should be starting around 50. Those pretty much the most expensive prices.

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  37. I have been to a JC warehouse sale years ago. It was madness but some great deals. swim suits were $1 and coats were $25 shoes were $10. There are no fitting rooms so make sure you have slip on shoes and try to wear clothing that you can try stuff on top of for example, girls wear a fitted shirt and a skirt. That way you can try on pants sweaters etc... You can score some great bargins but I would go Tuesday.

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  38. J. Crew's samples are size 8,which I don't understand because the models all look TINY. I take a 0 in J. Crew and the models are thinner than me, although quite a bit taller. However, I've been to J. Crew's sample sales before and there will probably be all sizes, including a huge mix of things from past seasons. Be aware of defective items-inspect everything carefully. There is probably no trying on. When I've gone, everything was mostly ugly merchandise in big disorganized cardboard boxes. It was all stuff that couldn't sell, remember. But that was not in NYC, so hopefully they'll have better stuff for their NYC sample sale.

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  39. The one I went to years ago I purchased 1 wool peacoat, 1 pair of leather sandals, 2 bikinis and 1 skirt for under $50. So there are bargins to be had but yes, check for defects and don't be afraid to try things on in front of everyone. There were some stand up mirrors, but no privacy

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  40. I think this would be so much fun! I hope all of you who get to go have a great time, and find some great deals, too! :)

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  41. I wish I could go, but I'm in Canada!

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  42. They used to have these back in the 90s near major college campuses...I used to live in Bloomington IN (I.U.)and they had a few there in a banquet room of the Hilton Garden Inn....wonder why they aren't taking a similar tack these days?

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  43. When I was in school in MA, they used to have a sample sale every year around the holidays in one of the malls. Various sizes and some really great deals to be had (plus, you could negotiate on pricing a bit). But unfortunately, a lot of it was ugly old stuff that didn't sell from years before. All the colors that nobody wanted, etc. I only live an hour from NYC but haven't decided whether its worth taking off work and fighting the crowds just to shop the same old, same old ...

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  44. I think I'm going to go there Tuesday. I'm taking the day off from work so I'll be there in the morning before it opens waiting in line (crossing my fingers I wake up on time). I've been to one other sample sale before and they did have a fitting room, but it was common so you had to change in front of everyone. Obviously they had one for guys and one for girls. I hope it's the same at this one because even though everyone said where tight/light clothes and easy shoes, I checked the weather and it's going to snow that day.

    Also, since I communte to and from work through Penn Station and the sale is right near the station I'll still check it out after work everyday before getting on the train to see if there's any new merchandise and additional discounts. It would really suck though if I bought a sweater Tuesday and saw the same size/color marked down significantly on another day, but no big deal.

    I know there will be crazy crowds because of the economy and the amount the sale has been promoted, but I just feel that the more the people the more the excitement!

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  45. IIiela,

    I am 5'10" thin at 128 lbs with a small frame and I wear a JCRew size 8 so fits with the model image to me......all that height takes up "room" in clothes. I love JCrew.

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  46. Thanks anon! I was wondering if height really could make such a difference with sizing. 5'10" and 128 lbs. is definitely "model thin" :)

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  47. Thanks to those posters who seem to be "in the know" about these sample sales. To those people who live in the area and are familiar with sample sales at this place:

    What time on Tuesday should we plan on getting to the line??? We are staying at a hotel one block away so we'll just walk over! Is 9:30 good enough? or should I plan on something more like 7 or 8?

    Thanks in advance!

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  48. This article is misleading, it looks like the author has never been to a sample sale. I used to work a few blocks away from clothingline and I have attended many sample sales there. I can tell you that if they advertise summer merchandise from the new collection, they are going to have summer merchandise and not winter stock that they cannot get rid off. This has more to do with the fact that many retailers put in their spring/summer orders before the crisis and they now fear that they're not going to sell enough. It's a good strategy to try to sell their surplus stock before everyone else and when people are ready to buy new stuff. And now, some insights from my past shopping experiences at clothingline. First, you won't be able to use your JCrew/students cards: you're dealing with a third party company, not JCrew. Third, there is a big common fitting room and yes, there will be a long line. The reason why the line can be long even if the place is kind of big is that they make you check in your coat and bag, so a good tip would be not to wear a coat/jacket and bring only a small purse and your credit card but unfortunately it's very cold now and this is not going to be an option I think. Last, if you can go the first day is obviously better but they usually have daily arrivals (not everything, some items) and if you can only go the last 2 days (Saturday and Sunday) you could have even better deals to make up for the relatively lower inventory: they usually slash the prices by about 20%-25% the last days. Hope that this is helpful. If you have more questions, feel free to post them here. Have fun!

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  49. Lindsey B,

    I was planning on 9:30. I didn't even think of 7 or 8. Granted the line will probably be longer when I get there but at least I won't be bored waiting. I want to bring a book to read but I don't want it to weigh me down when shopping.

    Ema,

    You said they make you check in your coat and bag. Does that mean you have to keep your wallet in your hand?

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  50. When is everybody planning on getting to the sale? I already took a vacation day for the 20th, but now I'm wondering how early I should arrive. Swimsuits for a dollar and jackets for $25 are enough to make me take the 2am train from Boston so I can get there in due time!

    I also think it's weird that the ad on Clothingline is advertising Spring/Summer clothes, when the author of the article thinks otherwise...which is it?!

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  51. Ema: Thanks so much for the insight!! What is your take on timing in the morning? Getting there at 9 - 9:30 should be fine? Do they provide big bags to stuff your clothes in while you're still shopping (ala Gap Outlet) or would we be allowed to bring one?

    Obviously we'll be wearing heavy coats (I don't do cold!) so I don't mind checking those, and I'll just put my cell and CC in my hubby's jean pockets.... that will work!! I want both arms and hands free to shop!!
    I'm certainly waiting in no long fitting room line!!! I pretty much know JCrew clothing enough to chance it without trying on... esp at slashed prices! At least seeing and holding the clothing is better than buying 'final sale' items online that you've never seen IRL!

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  52. I think the main reason this is held in NYC and not online is that is where the merchandise is and they use a third party company to run the sale. In order for them to put overstock online, they would have to ship all the merchanise to their warehouses in VA and Salt Lake City. I'm guessing that would cost a ton and defeat the purpose of the sale. JMO....

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  53. Monica and Anna L: I don't think I would get out there any earlier than 9 no matter what! (my husband and I are going out the night before, sans baby... so I'm not waking any earlier than that!) Plus, I hate standing out in the cold! My only concern is if they only let a certain amt of people in at a time and make it one-in-one-out .... that could be a horrible wait!!

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  54. Everyone! I WORKED a sample sale for Jcrew around 1999. I know how it goes - or how it went. Sample sales lines in NYC have people lining up more than an hour or 2 before the doors open. People go prepared, mugs, food, etc. Early is an understatement.
    Stock is never ending, replenished at the end of each day.
    Prices dropped each day as well, and by the last day, were up to or more than 50% off the sale price. It is worth it to go later in the sale. I know I will!
    Try to keep your cash or cards in your pockets, or a small purse. You will have to check larger items. They usually give you garbage bags to use for your goods.
    Any other questions...let me know!!

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  55. Lindsey and Monica: they will let you go in with a small purse that can fit your wallet and few other things, so you can have your hands free to shop and your wallet safely with you ;-). And yes, they give big plastic bags to take your tresures home;-). Re. the "arrival time" for the line, I never arrived earlier than 15-30 minutes before the opening and never waited too long to get in. You don't need to be the first in the line but the important thing is to be in the first "round" of people that they let in when they open because then they apply the rule one-out-one-in and you're basically good for hours of waiting. My advise would be don't arrive too close to ten because people tend to arrive all around the opening time and the line can get long in matter of seconds, so your chances to be among the first to get in will slim down and you will regret that cappuccino ;-)

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  56. Ema: agree wholeheartedly with your points. I want to get your thoughts on pricing. I've known them to discount further into the sale, but i've noticed with certain brands-Hickey, KidRobot, and a few other prices never changed despite abundant inventory. This leads me to believe certain vendors might hold the line on going below rollout pricing. any thoughts?

    Prior J Crew sales aren't a terribly useful benchmark as they aren't running the show here. Clothingline runs a pretty good ship and has staff walking the floor trying to keep the place fairly organized which is aided by folks not stashing and laying stuff about. as Ema noted avoid right around open and the lunch and end of working day crowd. I would speculate you'll probably see lighter crowds on Tues. than Wed. because of the inaugural.

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  57. So there are conflicting ideas as to how early we should get there to line up!! :) Darn!

    I think I'm going to shoot for 9 and see what happens! At least I can go line up while my husb fetches coffee ... that will help!

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  58. annon at 9:40: I, too, went to that sample sale by Burberry at Woodbury. It was madness with the crowds. But they were selling bags at $40. I got some boots, normally priced at $750 for $40. Short coats were starting at about $50. The space they rented was small and it was chaotic.

    If Burberry was selling at those price points, I expect JCrew will have rockbottom prices.

    I wouldn't worry about getting there on the first day because they will just replenish at the end of each day.

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  59. Lindsay: I don't think it'll be to imperative to be there quite at the crack. despite the fervor here, i don't know how big a draw this is going to be given A)J. Crew heavy in store discounting B)The economic malaise blanketing the city C)the inauguration. Notwithstanding, the posse that shows up will be both dedicated and eager. I'm keeping fingers crossed that there will be some of the print shorts and cocktail pants from last spring left.
    One other thing as it seems a lot of folks aren't familiar with Clothingline's Showroom. They don't have a big sign, usually a clapboard with the brands logo about toddler height. Also, they're on the second floor of their building which has the bonus of not having folks waiting outside. Perhaps Ema can shed some light on this as i've only ever waited in the coatcheck line which is always inside.

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  60. As far as I know the line forms in the street just outside the entrance of the building (which is a small glass door) and they don't let anybody wait inside the building. Which is bad because of the cold weather but good because at least you know where you are in the line (you don't wait an hour outside just to found out that you have another hour to wait inside). The staff is nice and they usually try to cheer you up while you wait and tell you how long you will have to wait.

    UWSClotheshorse: I don't know re. the pricing strategy. It's true what you say but I have a feeling that in this case they will slice the prices in the last few days.
    I should add for those who are not familiar with sample sales that you cannot return your stuff. Clothingline policy is that you can exchange during the duration of the sale for the lowest price (ie, if you buy something the first day and you decide to exchange it for something else the last day and the price of your item is now lower, you will get the lower price). Once that the sale is over they don't take anything back. Also I have found it difficult to use the Amex return protection benefit to return stuff bought at Clothingline because they don't give you a valid ticket, only your credit card receipt with the total (and you need the ticket with the items breakdown to return stuff through Amex). Bottom line is: think twice before buying because it's very likely that you're going to keep everything.

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  61. Hi! Is there any indication as to whether they will have primarily retail items with some factory store products or equal of both. I agree with the comments re quality of factory stuff-I don't waste time at the factory stores-maybe once a year if that. During the last visit I asked if they retail items only. The SA told what little there was would on the sale racks. She also told me the tags of items made only for factory stores will have 2 diamonds under the J Crew name, whereas retail items will have 3 diamonds or no diamonds at all. Having said all that I'd love to find the orange Talitha dress and the ankle length patwork madras skirt in size 10 or 12 from 2 years ago. Sorry for the errors. I'm typing with one hand on the phone.

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  62. Just to further justify JC doing a sample sale instead of an online clearance of merch: the website can't even handle a little "20% off final sale"!! Can you imagine 70% off or more? HA! I'm not supposed to be spending any money at JC anyway until after the sample sale ... so thanks JC for helping me keep my promise!

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  63. Clothingline, the company that is running the sale, has a website (clothingline.com) that should answer most of the questions people seem to have...they take plastic (but not the JCrew card), they have try on rooms, when they expect to be the busiest, etc. Check it out!

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  64. I can't exactly pop over to the east coast just to shop--much as I would like. I too wish they would sell their overstock online or at the outlets instead of making lower quality items specifically for the outlets.

    Does anyone remember the old days when they used to ship special sale catalogs? It was so addictive to receive the package and then go to town on the special sale catalog.

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