These words cast an indelible impression on me as Don Fisher, Co-founder of Gap, Inc. sat on a solitary stool alone on a stage in front of over 3000 store managers and senior management from around the world in Las Vegas, Nevada in the late nineties. This was his mantra and he wanted to share it with everyone in the company. His deep baritone cast a spell on the audience as the white on black words appeared on three screens surrounding him on that stage.

He spoke about the humble beginnings of the Gap concept in San Francisco in 1969 and how he and Doris decided to go into the retail business after being in real estate for his entire career. Now, at 41, he decided to make his first big CHANGE.

His next big CHANGE came as he reached an inflection point in the Gap brand life cycle. He had built a terrific business based on being in stock in Levi’s jeans and he knew he needed to do something to drive his company further 16 years later. Being a real estate visionary and not necessarily a merchant, he decided what he needed was to hire himself a crackerjack merchant, and that he did. Mickey Drexler (now of J. Crew),  from Ann Taylor, was convinced to move from New York to San Francisco and become Don’s “partner” as they liked to call themselves. That was a brilliant move as Mickey effectively turned the company into what it is today, a multi-billion dollar, multi-national concern with four apparel brands (Gap, Old Navy, Banana Republic and Athleta), a burgeoning online business named Piperlime, and brand identities others crave to own.

There were many CHANGES in the business as Mickey helped steer the ship. Purchasing Banana Republic and re-positioning the brand. Conceiving of Old Navy and turning it into one of the largest specialty retail brands in the world. Pushing an online business which is the envy of the industry in performance and functionality. Occupying the best real estate in the country. Expanding internationally one step at a time in Europe and Asia and now licensing in several other countries.

Don was never afraid of CHANGE and as an entrepreneur, one can’t afford to be. He implored everyone in the company to embrace CHANGE and become a CHANGE agent, seeking it out before it is foisted upon us. He was our mentor, our father figure and our friend at the same time. I will never forget him calling me (when I was running Canada for Gap) several times to tell me how much he and Doris  appreciated my efforts on behalf of the company and that he was so proud of me. I will never forget him as long as I live and I will try to do him proud from this day forward.

Don Fisher passed away on Sunday, September 27th at his home in San Francisco, with his family by his side. His incredible legacy endures not only in the company he conceived and continually transformed, but in the San Francisco community, in the world of modern art and in his charitable work, specifically trying to revolutionize the educational system in the U.S. one step at a time. His story is one of humility, of fearlessness, of strength of convictions and of charity.

The true measure of his impact is that his message and his efforts have been and will continue to be felt by literally millions of people. What a life’s work. Rest in peace Don, you have earned it.

TheRetailTherapist

While it’s apparent that Mickey Drexler took The Gap to a new level, Donald Fisher deserves an enormous amount of credit for having the vision in the first place. He saw an opportunity to develop a business model tailored to fit the rapid expansion of regional malls during the ’70s and ’80s. He created one of the first specialty retailers filling a niche (or “gap”) that was being neglected by traditional department stores; in a very real way, The Gap was one of the earliest “power retailers” although not in a big-box format. And, finally, he understood the strength of branding: Even though The Gap began as a Levi’s “headquarters,” eventually the brand image of the store became bigger than the sum of its parts.

Not Clyde, but Mickey.

I was cruising Aly’s page and saw his post on this guy, “Mickey Drexler”. Now usually I leave my blog post pretty minimal, but I felt somewhat compelled to express my opinions on the Interview conducted by Charlie Rose last year. If you watch the interview and actually pay attention, the man says so many things that will have you nodding in a positive manner. From his philosophy of looking who to hire to his attention to detail, leading into excellent micromanagement skills. Oh yeah and he has a keen eye for “classic” American clothing I mean look at his resume: He is the CEO of J.Crew, resurrected Madewell a company originated out of Massachusetts and was the driving force behind a brand called “The Gap”.

“Most involved CEO in America today”

Hello-Hello and Happy Monday!  We hope everyone enjoyed a splendid weekend!

It seems this past weekend had a bit of a J. Crew management theme in some of the national media. As previously mentioned, J. Crew Grand Pooh-Bah Mickey Drexler was profiled yesterday on CBS’ “Sunday Morning” program.  The feature looks quite interesting, click here to see the full story.

Also this Sunday, the LA Times carried an interesting story on Jenna Lyons, J. Crew’s Design Director.

PHOTO: Melanie Acevedo

If curious about what duties and responsibilities her job actually involves, the story explains:

“That title means she’s in charge of every design element of the company, website and catalog, and it’s her attention to detail — delicate beading, raw edges, crepe de Chine ruffles — that sets J.Crew apart from other mall stores. The company’s ability to be both aspirational and attainable has made it popular with Indianapolis career women and Birkin-toting Malibu trophy wives alike.”

Fashion Critic Booth Moore’s article looks at the ‘cult of Jenna’:

“Bloggers evaluate her personal as well as professional style, contributing to the budding cult of Jenna. They wax eloquently about her love of neutral colors, Sharpie pens and Maybelline Cool Watermelon lipstick.

When it comes to the monetization of this phenomenon or other tangible values attached to such popularity, stock analysts aren’t necessarily seeing it:

“But praise in the blogosphere can’t guarantee a surge in sales of all those pencil skirts and cardigans. “Nobody needs another one-pocket tee or twin set or pleat-front skirt,” says Richard Jaffe, a retail analyst with Stifel, Nicolaus and Co. “Your closet is full of them.”

This feature on Ms. Lyons, when read in tandem with the CBS profile on CEO Mickey Drexler, provides insight into the business of fashion. More from the LA Times piece:

“The chief executive and the designer behave a little like a father-daughter team. Over lunch at Cecconi’s in West Hollywood, she tells him that “being back here even for one day, all my insecurities come back. Women here are in such great shape. Everyone is blond and beautiful. Girls are trying on bathing suits and coming out of the dressing rooms and I’m like, ‘Just stay in there!’ “

The story also  offers a look at select items from the Fall 2009 J. Crew Weddings & Parties line.

Lucinda Gown at JCrew.com

The dress is a poly/cotton/silk blend retailing for $2500.  Also shown, the cotton Erica dress in Cypress, a color available this fall.  (Note: our link connects to the current Erica dress, with most colors on sale for $99.)

Erica Dress at JCrew.com

And finally in our “J. Crews News section” this morning, word the company’s spinoff brand Madewell 1937 is launching a jeans collection deemed “… a bit more price friendly.”

Courtesy Photo via WWD

This morning’s WWD (Women’s Wear Daily, subscription req’d.) reports on the new line, Madewell ’37s, focusing on a single “skinny skinny” jean available in five colors. Perhaps most importantly,the new jean will retail at $58.50; other Madewell denim starts at $78.

Courtesy Photo

As far as differentiating the new jeans from other ?

“The tag line for marketing the ’37s is “Cool jeans. Great price. We’ve got your back.”’

This article also quotes J. Crew CEO Mickey Drexler:

“There’s a new world today. The denim customer is no longer trading up to higher price points. With customers giving us feedback and the marketplace changing, it was pretty clear there was a need to come out with a collection of jeans a bit more price friendly. Jeans at $92 to $110 represented the heart of the business.”

While we are not exactly the Madewell demo (cough-cough), it is good to see retailers being smart in pricing.

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Our final item today has *nothing* to do with either J. Crew Group or Mr. Drexler, not that we are Drexler-averse, to the contrary, we think very highly of his skills. We just need to chat about something else, don’t you think?

No, our next item involves a statement contained within this story in yesterday’s Times, a feature looking at the continued demise of the crossword puzzle, along with other puzzles, in many publications.

“The Atlantic’s Puzzler, which will take its final bow in September, and The New York Sun’s crossword are among the most notable recent casualties, in part because of their Ivy League street cred. (Let’s face it: the crosswords in TV Guide and People magazine seldom generate heat at Hamptons dinner parties.)”

“Ivy League street cred?” Now, TP adores her crossword puzzles. Nothing is quite as comforting as settling in with pen (it must be a very specific pen you understand) and newspaper, generally the Times, but we have been known to utilize others in a pinch. But we have never heard them associated with an Ivy, that is a new one for us.

Have you heard of such an affiliation in anyone’s mind previously? More importanly, do you use pen or pencil when you do the puzzle? When pondering how to best answer these deep questions, do keep in mind the world’s fate hangs in the balance. (Heh-heh.)

With this wackiness we say G’bye until next time!

Hello-Hello and oh-so-Happy-Friday to all!

We thought everyone might like a reminder about the new line debuting at Targèt this Sunday. (Although it has already been spotted in some stores.)

Courtesy Target

We are talking about the Hollywood Intuition for Target Collection.  Designer and stylist Jaye Hersh is the creative mind behind the Collection; she is perhaps best known for her more-than-hip Hollywood boutique, Intuition.

The Tarszay line includes handbags and small leather goods, scarves and jewelry, hats and headbands, and more.

Courtesy Target

Intuition is a major fave for loads of celebrities, including one of the original AntiPreps. Below, Ms. Hilton carries the HollywoodIntuition Belt Bag.

Prices for this new group will run the gamut; $2.99 for a headband to $29.99 for a handbag, very much in line with other collections at the Boutique.

Courtesy Target

Those price points are a world away from what some pieces cost in the couture line Ms. Hersh did for the retailer back in 2006; that Collection featured Target’s bullseye logo on all manner of things and prices ranged from $25 to $3000. (Ummm, we must claim Newzheimer’s as we have no recollection of this at all… do you?) Below, faux-leather pouches from the Collection debuting Sunday.

Courtesy Target

It looks like there are lots of goodies, clearly something requiring retail reconnaissance in the not-too-distant future.

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For those interested in closely following happenings at J. Crew, CEO Mickey Drexler will be profiled on CBS’ “Sunday Morning” this Sunday.

From the Memo Pad story in this morning’s WWD:

“… closely trailing Drexler and his team on and off for about a year, experiencing closed-door design reviews, spontaneous brainstorming sessions, photo shoots and the rise of new retail concepts, such as the Liquor and the J. Crew Collection stores.

It could be an entertaining story, probably instructive for those of us who have studied fashion merchandising and marketing.

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As we generally share new of Gossip Girl stars landing on magazine covers, we have news the Blake Lively cover for the Glamour UK August issue.

Courtsy Glamour UK

As always, there is no shortage of photos accompanying the cover story.

Courtesy Glamour UK

We also have a number of other G2 tidbits:

• Joanna Garcia from “Privileged” is guest-starring for 4 episodes, playing ‘Nate’s’ love interest.
• Hillary Duff’s multi-episode guest spot on the show begins on October 5.
• Season 3 of the show premieres September 14.

The entire cast has been out and about this week, back on location and shooting in the city. Below we see costars Ed Westwick (at his gnarly best) with Leighton Meester.

Courtesy JustJared.com

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Speaking of Season 3, it is merely 5 weeks until we see the return of Mad Men.  August 16. 10pm EDT.

But what we really wanted to ask: has everyone seen the creative way amc-tv packaged the Season 2 DVD set?

The set is designed to look like an old-style mens shirt box, a nifty idea IOHO.

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A reminder, ArtHamptons gets underway today; it is worth the trip if you are in the area and in the market. Actually, even if not in the market, it can be fun to attend simply to look at all goodies.

If anywhere near Water Mill,one might want to do a drive-by and peek at the 2009 Hampton Designer Showhouse, it is now officially on the market.  (The area isn’t exactly our ideal, but the proceeds do go to a good cause, Southampton Hospital.)

May be it be a simply splendid weekend for everyone, regardless of where one is located!

Here’s the no-crap headline of the year: The economy sucks. That’s caused most brands to re-evaluate their marketing mix, re-allocate spending and re-prioritize initiatives. Sometimes the marketing strategy or tactic that makes you stand out, though, can be something incredibly small.

I’ve always heard that you shouldn’t sweat the small stuff. There are times, though, that I disagree. Depending on the context, sweating the small stuff can mean the difference between success and failure. The details matter and paying attention to them can set your brand apart from the competition.

Case in point…

I bought my wife a sweater from jcrew.com a few weeks before Christmas. It wasn’t a large order for the retailer – about $50 total. My wife opened the box when it arrived, pulled out a note card-sized piece of paper, read it, smiled and said “this is nice.” Then she handed it over to me.

The note was “from” J.Crew chairman and CEO Millard “Mickey” Drexler. Here’s what it said:

“We’ve all read the news, and I think it’s safe to say, we’ve seen better times. We understand that now more than ever, where you shop is an important decision… so we just want to say thank you for your continued loyalty to J. Crew. – Mickey”

Of course he didn’t hand write the note, though the font chosen gives you that impression. He most likely didn’t write the copy. He may not have even read it. As a marketer, I know these things. But the note and the sentiment behind it left us with a very good feeling about our purchase and about J.Crew generally. Apparently, the brand has given a few other folks the same feeling.

That’s because the note shows that J.Crew recognizes an important truth. Consumers are making more calculated purchase decisions now, but getting what we pay for is never the only value we want from those purchases, regardless of whether we’re in an up economy or a down economy. We also want to feel that our business is genuinely appreciated.

Often we brainstorm elaborate marketing tactics in hopes they will make a big splash with consumers. That’s not a bad thing, but we shouldn’t overlook the small stuff that can make a meaningful impact. Want to build consumer loyalty for your brand? Let them know you’re thankful for their business. The easiest way to do that, ironically, is to simply say “thank you.”

Turns out our moms were right. Good manners like saying “please” and “thank you” can take us far in life – and our brands, too.

• Have you been impressed by a company – small or large, local or national – that won you over by paying attention to the details that too often get overlooked?
• What did they do?
• What are other small things brands can do to win consumers in this down economy?

*Image of Magic Toy by Georgios Karamanis. *Image of J.Crew note card by David Mullen.

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DISCLAIMER: The following report is rated M for Mature; it descends to new lows in its frequent and flagrant use of the M word (money) and it is intended only for adult readers.

MPAA

Everywhere one looks there are stories about “the death of luxury.”

JP Morgan recently called upscale retailer Saks Fifth Avenue “the Gucci Blue Light Special,” referencing the deep discounts they have taken this fall. Below, the company’s sale page on their website.

Saks Fifth Avenue

The International Herald Tribune (as well as the NYT) ran a story Monday, “Luxe is losing its edge,” with the focus on struggles facing high-end jeweler Bulgari.

Courtesy Bulgari

The story also talks about stores cutting back on expansion plans, like Burberry, Cartier, Saks and others.

The “Sale” notices do continue to pour in via both email and standard mail, many from establishments one would never associate with such aggressive price cuts, like this one from Barneys:

Barneys New York

Previously, *if* for some insane reason stores felt forced to discount at this level, they hoped and prayed it would not negatively impact their image as purveyors of luxury goods.

We cannot remember the last time (if ever) we saw Burberry Prorsum selling for 60% off their original price, as is the case with the Empire Cocoon Coat.

Burberry Prorsum Cocoon Coat

Not everything at Burberry is marked down at that level; this children’s Argyle Sweater is “only 30% off.”

Burberry

The same is true for the children’s Wool Duffel Coat:

Burberry

There is even a post at Vivre Magazine online asking if “60% Off is the New Black?” The story raises the question that TP considers the elephant in the room for retailers:

“As stores slash and cut their prices just to hear the cash registers ring, you wonder if consumers will ever want to pay for full price for anything ever again. When this is all over, will any customer actually walk into ANY store and still look at Prada wallets and other designer handbags that used to be kept behind glass and are currently on tables and bins, the same way again?”

The Times ran a story in November “In Hard Times, No More Fancy Pants,” quoting one of our favorite authors:

“The era of conspicuous consumption, at least for the foreseeable future, has come to a close,” said Paco Underhill, the author of “Why We Buy,” which explores the science of retail.”

In yesterday’s WWD a story made the case that “Flaunting Days Are Over as Consumers Cut Back.“

The story by Sharon Edelson does feature an amazing Graff necklace that we simply had to share:

Graff Courtesy Photo

The piece is a little over the top in our estimation (this is where Great Aunt Molly would lower her voice and whisper ‘New money sweetie… you know what I mean.”).  Actually, the story channels GAM in a remarkable fashion:

“Logos are becoming less important, said Pedraza, noting that customers are starting to ask for unmarked brands. “People want very understated products,” he said. “They want to consume privately.”

“While people with new money tend to define themselves by their labels and what they spend, the rules are changing. People want to buy more classic luxury at better prices. They don’t want to be the people who are showing off.”

For many readers this is not exactly breaking news. How are you reacting? Are you simply purchasing necessities and/or discretionary items as desired, or waiting for markdowns? Or perhaps a mix of both…?

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While not considered a luxury retailer, J. Crew has also been in the news.  As reported on the WSJ Holiday Sales blog, J. Crew CEO Mickey Drexler said:

“J. Crew is trying to adapt, he said, by making small investments in new concepts, implementing a hiring freeze… looking at lowering opening price points for its crewcuts kids line.“

Did everyone notice the hiring freeze? We almost missed it upon reading about Crewcut prices, but it was noted in a story on GlobeSt, a real estate website:

“J. Crew has initiated a company-wide hiring freeze Drexler revealed, even during the holiday season… If someone wants to hire someone, someone’s got to leave,” Drexler said.”

Regular readers will remember Mr. Drexler’s comments shared in this post about lowering price points on some adult merchandise. Speaking about the overall climate for retailers:

“I’ve never seen anything like this in my life…”

“Right now we’re all a little afraid,” he said. “If there’s anyone getting up in the morning and not saying ‘uh oh,’ then I’d like some of that medication.”

If Mr. Drexler locates a source for those meds we hope he brings enough for the rest of the class.  If not, we fear we shall be forced to make do with a little Prozac latte.

Indeed.

Well, hello again.  We spent a good part of the day away from Preppy Princess InterGalactic headquarters, picking up a houseguest and tooling about the area, come home and see this headline for Eric Wilson’s column in today’s Times:

J. Crew Gets Uppity

Now, a bit of background for anyone who hasn’t spent time toiling as an intern (or even as a paid employee, TP has done both) at a newspaper: the person who writes the headlines is well removed from the person who writes the story. Unless something has changed since we did print, Eric Wilson most assuredly did not declare J. Crew “uppity.”

As far as the story itself goes, the question is asked about the timing of opening the new J. Crew Women’s Collection. (That story follows this one.)

“Regardless of the market, J.Crew’s new designer collection — sold here and at jcrew.com — has raised eyebrows among analysts and competitors who wonder why on earth a company known for its preppy basics would put on such airs. Mr. Drexler said he believes in the product.”

“The first thing you see inside the store is a jacket covered in hand-painted French sequins to look like tortoiseshell, with a price of $3,000.”

“The clothes look more like those at Michael Kors, with featherweight cashmere scarves ($150), a gold beaded dress ($595) and a printed calf-hair jacket for $2,200; but mixed in were J. Crew staples like $85 matchstick cords.”

Mr. Wilson raises some valid points, although he points out:

“In the first three days, the store sold three of the $3,000 jackets and a surprising number of silk flower pins priced from $50 to $200, Ms. Lyons Mazeau said, looking at the numbers as a sort of validation. (Of 200 pins ordered for the store, only a dozen or so remained on Wednesday.)”

The next several months will bring rough sledding for almost every retailer; it will be interesting to see who does well in this environment. J. Crew’s first Men’s Collection store opened in Tribeca this August. (Here is one of our never-ending and somewhat tedious posts about it.)

With their second Men’s-only store slated to open next month in New Jersey (Garden State mall), Mr. Drexler has announced yet a third Men’s store.  This one will be in Soho, conveniently located next to their Madewell brand store on Broadway.  We thank the good folks over at Racked for the photo and their remarkable ability to stay ahead of all things J. Crew, among many other topics.

Regular blog readers know The Princess believes that what’s good for the goose is good for the gander. This is only one of many reasons she is pleased to share the news that the J. Crew Women’s Collection store has finally opened on the UES (Upper East Side) in New York.

PHOTO: John Aquino

The company is doing what we call a “soft-launch” if you will, no major promotion, the doors simply opened one day last week, and voila! There it was in all its perfection! The merchandise mix sounds fabulous in today’s WWD story:

“… the Collection store presents some higher-end products such as calfskin jackets, priced $2,200, or patent leather jackets lined in silk twill with a Ratti print, $1,800.” (Below.)

Lucido Patent Leather Jacket

“There are also metallic jackets and shoes in the $300 range….”

PHOTO: John Aquino

“… textured calfskin skirts priced at $495, as well as silk Japanese obi belts, Rolex watches, hand-painted Elizabeth halters, one-of-a-kind jewelry, including a vintage “mazel tov” charm bracelet, Lugano luggage…”

Lugano Valise

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Above, one of the Lugano pieces, also available online and through the catalog.

“… handmade silk flowers (only three per customer allowed), bleached and dyed python bags and clutches….”

Below, one of the $3000 python Jamie handbags referenced in the article.

Python Jamie Bag

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One of the many reasons we are so fond of Millard “Mickey” Drexler, J. Crew’s chairman and chief executive is evident in this statement:

“People tell me, ‘How about putting up a bigger sign,’ but we don’t want to intrude on anyone… In an Upper East Side building, I don’t think big signs are very elegant,” continued Drexler. “The last thing people want to see is their neighborhood become a strip center. It’s our way not to be out there, but to be there.”

Photo: John Aquino

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Above, Mr. Drexler and Jenna Lyons Mazeau, the company’s creative director, while touring the new store.  The store is on Madison Avenue, at 79th.

While you won’t find any of these goodies in the Collection, there is still a significant amount of merchandise still available at the J. Crew Clearance sale.  For an additional 20% savings on Clearance goods, use the coupon code EXTRA20.

Coupon Code: EXTRA20

We may not post every day this week as we are busy showing our houseguest around the area, so we apologize in advance for being a poor comment-leaver, we shall try and catch-up as soon as humanly possible.

“Big is the enemy of cool.”

–Urban Outfitters (URBN) CEO Glen Senk said this in the company’s recent earnings call. Urban Outfitters is one of the few winners in today’s punishing retail environment. Management reported a 79% increase in second-quarter net income.

Senk’s words echo the philosophy of J. Crew (JCG) CEO Mickey Drexler, the subject of a cover story in the current issue of Fortune. But J. Crew isn’t sharing in the success of its competitor, reporting disappointing earnings yesterday. Drexler blamed a 12% drop in second-quarter net income partly on a systems upgrade that disrupted phone and Internet sales. He lowered J. Crew’s fiscal-year outlook.

Even as Wal-Mart (WMT) is the world’s largest company, Sam Walton, its founder, subscribed to the “smaller is better” belief. (Power Point to come!) Low prices are vital to Wal-Mart’s success in this brutal economic downturn, but that ethos works in its favor too.

“The more you see of anything, the less special it becomes. it’s kind of like the first slice of pizza vs. the sixth. The first you’re like ‘God, this is amazing!’ The sixth you’re like, ‘Enough already.’”

-J. Crew (JCG) CEO Mickey Drexler from John Brodie’s story in the current issue of Fortune on why he thinks designer goods are going out of fashion–they’re too available. Drexler spent nineteen years at the helm of the Gap before being fired in 2002 after a two-year slump. Gap Inc. (GPS) announces earnings tomorrow after the market closes.

The June/July issue of Details sheds some light on the special new J. Crew men’s store in TriBeCa. So far we know that the space —an old liquor store on West Broadway —is spectacular and sort of Edward Hopper-esq. What we learned from the Details article is even more exciting. One of the ACL’s idols Mr. Andy Spade and his new creative firm Partners & Spade, has been retained to add his retail genius into the mix. This makes me think that we could have an American interpretation of Paul Smith on our hands. I can’t wait to get a first hand look at this store and I am excited to be able to finally buy Birdwell Britches in person.

Also of interest:

Mickey Drexler on Charlie Rose

J. Crew’s first men’s store [DNR]

“Sticking to one’s knitting” has always been an axiom in our retail world. We can count on one hand how many retailers have been able to completely re-invent themselves and become more successful. Once dormant brands have been ‘re-resuscitated’ such as Banana Republic and Abercrombie and Fitch. Mostly though, brands and concepts have been ‘refined’ along the lines of Target, J.C. Penney and even Victoria’s Secret to match the customer’s demands for change but all the while remaining essentially what and who they were before.

One example of a ‘re-invention’ gone sour was when Gap decided to rid themselves of all their basic commodities and become a young, hip source for fashion, earlier in this century. The chain dropped 25% overnight and hasn’t fully recovered since. Any other success or horror stories of re-inventions out there? I would love to hear them.

In a recent outing at the mall I was struck by two retailers who have been hot lately and are taking slightly different approaches in this tougher environment. Anthropologie has honed in on the 20-30+ year old women who love the thrill of the treasure hunt, when looking for either something to wear or something with which to adorn their residences. They are unique not only in their approach to the theatre of retail (with their elaborate visual changes every quarter in every store) but their ability to create branded labels out of their own private labels. They have been consistent in this approach with their merchandising, staying true to their customer and not wavering from their core formula.

J. Crew has been another fabulous success. What Mickey Drexler and his team have done with that brand and those stores is nothing short of remarkable. They have extended the brand to wedding gowns, suitings, kids clothing and additional accessories, while, for the most part, staying true to the original premise of well made, preppy/fashionable weekend clothing for the young at heart. However, I hope the latest store set up is not indicative of a change in direction.

At the front of the store, were mannequins lined up with quite dressy looks in metallic fabrics in quite hideous mustard and gray colour combinations. It was not pleasing to this eye when walking in the door. It did not seem to fit what the general premise or direction has been for the past number of years. Maybe it was an aberration and it will change in the next few weeks (if it hasn’t already) but the point is, especially in these uncertain economic conditions, the customer must feel their favourite stores are familiar and trustworthy and must not stray from them in their time of need.

Staying true is difficult especially the more success one garners and especially in the “fashion apparel” business. But the customer must be able to recognize who you are and what you are offering as that is how they, in part, tend to define who they are and what they should look like to the rest of the world. A very important facet to keep in mind in any retailer’s strategic planning session.

TheRetailTherapist

This past week J. Crew Group C.E.O. Mr. Millard Drexler was a guest on Charlie Rose. He provided great insight into the retail world, specifically that of The Gap and J. Crew Group. I was mesmerized by the interview and it made me feel as if I was friends with Mickey — or in someway connected to his inner circle. The story of how Mr. Drexler had purchased the defunct New Bedford, Mass. based workwear manufacturing company Madewell, relaunched the name as a contemporary women’s brand and then leased it to J. Crew for one dollar was particularly intriguing.

There are a lot of great things to be learned from Mr. Drexler in this interview — specifically about hiring talented people, treating those around you with respect, returning every phone call and acting like a small company in the “anti-customer service era”.

I specifically identified with one of the things Mr. Drexler said in the interview: “I have a uniform, I wear what is comfortable, not what is fashiony.” That is one of the great things about men’s fashion, your ability to find what works and then repeat indefinitely.

Further Reading:

A C.E.O. Sells the Store — NY TIMES

Mickey Drexler’s Redemption — NEW YORK MAGAZINE

The Gap Inc. saga is certainly one of the most compelling questions and stories in specialty retailing in the last few years. Questions have abounded over the past 6 years as to whether the company became too big for its own good; whether they overexpanded and thus overexposed its brands; whether the leadership was effective enough; whether they fell out of fashion; whether they lost ‘it’ (aka “cachet” or a certain “je ne sais quoi” they had in spades during “khaki swing” and Old Navy’s launch); whether any fashion retailer can last that long etc.

It was never a question of financial strength or lack of resources (specifically cash). But perhaps it was a lack of common sense and foresight. I would love to hear about whether you shop any of their brands including Gap, Gapkids, babygap, Gapbody, Old Navy or Banana Republic. One disclaimer I will inform you is that I worked there in the late nineties and early 2000’s – but hasn’t everyone worked there at one time or another?

Here are a few theories and observations…

1) It did get too big too fast starting when it was about $5 billion in 1996. When they talked about ramping the business to $20-40 million (not a word of a lie) and spend $1 billion on advertising to ensure the brands were top of mind and rival the spending of a Coca-Cola, I thought it sounded a bit strange. We did all drink the Kool Aid, but no one asked if the organization (including the leadership) possessed the skill sets to manage this growth and lead a $15 billion plus apparel retailer. HR was not a major influence at the strategy sessions and the work force was simply overwhelmed and overmatched.

2) Because of that growth sprint, managing o company of that eventual size was not Mickey Drexler’s forte. He is brilliant, don’t get me wrong and the proof that his forte is a smaller brand with huge potential where he can be hands on in the merchandising and imaging of the brand is never clearer than today at J. Crew. What he has done with that company and that brand is nothing short of phenomenal. He did the exact same thing at Gap when it was J. Crew’s size back in the late eighties and early nineties. But at Gap Inc., it quickly became too unwieldy and did not play to his strengths and hence his departure in 2002, which was the right thing for both parties.

3) I never understood why the individual brands were allowed to compete so fiercely with each other. The race for real estate and fashion trends and key items was intense and quite frankly, obscene. Old Navy was totally bent on eating Gap’s lunch and Gap was panicked as to what to do about their assortments and their store formats. Gap built much larger footprints to give it more of a department store feel with all 4 sub-brands in one box of 20,000 square feet (which was, not coincidentally, the average size of the Old Navy standard box). Each brand took the same type of real estate space and went after the same malls and in some cases opened right next door to each other. It also forced Gap to try and go after a more upscale customer, which then started infringing on the Banana Republic business. Gap was truly “Malcolm in the Middle” and like a middle child, started kicking and screaming and making poor decisions, including, at one point, ridding itself of all its tried and true basic commodities on which the brand was built (like denim, khaki, pocket t-shirts etc.). Gap swung the pendulum toward a trendy and fashion forward look that the company dropped 25% comp overnight. Gap then scrambled to get back in stock but it took close to 12 months for the pipeline (which was constantly replenishing the basics in an orderly, just-in-time way) to refill since it was completely emptied out.

4) Old Navy stayed too boring and basic. With the influx of European players such as H & M and Zara, Old Navy did not react fast enough to the changing tide of fast fashion and fresh looks. Even Steve and Barry’s came up with a fresh approach by synergistically using celebrity endorsements to attract a new customer and create excitement and hype (I call it “news” as it were) with Stephon Marbury (for the teen athletes), Amanda Bynes (for the teen girls), Bubba Watson (for college age and older males) and Sarah Jessica Parker (for the college and young women set). Ironically, Sarah Jessica Parker was featured prominently in two global Gap ad campaigns not 2 years prior to her signing a deal at Steve and Barry’s.

5) I also believe that Gap could have taken a road less traveled at the time, grounded itself in denim of all sorts, regained its authority over the category and morphed into more of what Lucky Brand looks like today. Between Buckle and Lucky Brand, they have stolen the mid-priced, fashion and basic denim market away from Gap in the malls across the United States and soon elsewhere.

6) Through it all, babygap and Banana Republic have remained strong and sharp. Their brands are solid and the merchants in those brands have separated themselves from the competition and stayed true to their strengths. They constantly differentiate themselves very well from their sister brands, something the other namesake brands of Gap and Old Navy failed to do at the outset and throughout the turmoil.

Having said all the above, I still believe in the brands and in Gap Inc. I know a number of people who are working hard every day to regain each of the brand’s prominence in the marketplace and in share of customer’s mind. They have a new CEO, a brilliant merchant as president of Gap and a very grounded, committed and humble founding family still holding around 30% of the shares outstanding. The Fisher family are among the nicest people you will ever meet.

So I am rooting for them and so should you be as they helped define specialty retailing over the years. What doesn’t kill you only makes you stronger and I believe Gap Inc. will be stronger for this extended period of transition and education.

TheRetailTherapist

It seems that everyone has a plethora of branding stories no matter whether you are relating to business issues or even personal issues. Any experiences with companies, stores, websites, or your own “personal brand” (as we are often called by some talking heads) make up branding moments. Nevertheless, there are thousands upon thousands of stories people have. It would be fun and instructive to hear yours.

My observations on the branding movement are diverse. I happen to think that in a retail brand, you have three legs of a stool that you must develop – the merchandising (product selection, assortment, visuals, store layout, store design); the marketing (messaging to the consumer either inside the store or externally, a strong brand image and the ability to capture a place in a customer’s mind); and most importantly to me, the customer experience (the sensory experience of the store – sight, touch, smell, sound, vibe – along with the quality of the staff interaction/store interaction or website speed and entertainment factor).

In the case of a store, the most important branding moment is between a customer and a sales associate/staff member on the floor of the store at any time of day or night in any store around the world. To me that is what makes or breaks your “brand” in the bricks and mortar world.

In cyberspace, it is the speed and accuracy with which the website responds to the customer along with any entertainment and visual stimulation that can be added along the way that does not interfere with the efficacy of the transaction or intent.

This is easier said than done. I remember at Gap, branding the “Blue Box” (the Gap logo) became a global initiative. So much so, that the head of marketing at the time (the very eloquent Michael McCadden) flew around the world to deliver a well rehearsed and highly informative and entertaining Power Point presentation on branding in general and branding Gap in particular to every store manager globally. I thought that was impressive and I have not heard of anything like that done since. It sure made a powerful statement and certainly had everyone singing from the same song sheet.

A few other musings on branding…

Why is Tim Horton’s always lined up across Canada- is it really their coffee? No, it has more to do with the fact it is a Canadian icon/brand and that it is a quintissential “experience” for Canadians.

J. Crew with Mickey Drexler at the helm has gone from zero confidence in the brand to about as cocky as one can get. Any brand that can feature cashmere sweaters for $118 at full price on the front tables of each of their stores in the middle of July during the height of clearance season certainly has a ton of brand confidence.

Someone once told me it takes years to build a brand but about 10 seconds to destroy one. Look at what has happened to Land’s End. Their catalogue was the ultimate in focused, branded merchandising, appealing to a large but very specific group of consumers. Since Sears has bought the place and tried to integrate it into its retail surroundings, it has been a disaster. Why? Because it is clear that Sears has no appreciation for or understanding of what it takes to maintain and nurture a brand. The last Land’s End section I walked into (a few weeks back) was an insipid display of basics, with very little signage or messaging, one large “Land’s End” sign and ‘lifestyle’ posters that were half covered up by the ceiling overhang as they were leaned against the back wall. It is sad and embarrassing. More on Sears at a later date.

For now, I would say that if you are lucky, a brand (retail, personal or otherwise) will occupy a specific piece of real estate in people’s minds that they will commonly refer to and think of fondly. Once that happens, that is the best “Brand Story” anyone could hope for.

TheRetailTherapist