J. Crew is heavily reliant on the United States, Japan, and Canada for sales. It lacks a major presence anywhere else in the world. Thus, economic stagnation in these developed regions would cap growth for J. Crew.
J. Crew is heavily reliant on the United States, Japan, and Canada for sales. It lacks a major presence anywhere else in the world. Thus, economic stagnation in these developed regions would cap growth for J. Crew.
With future economic conditions looking unstable, consumer spending might decline. Personal spending on apparel as a percentage of income has declined over the past two decades. The possibility of a below par Christmas for retail looms in the immediate future.
The retail apparel industry has extremely low barriers to entry. J. Crew's rivals can easily copy the firms style and strategy to eat away at market share. Such a change could be bolstered by a change in fashion taste , like the fading of the 'preppy' look.