J.Crew to Open Online Outlet Store!

J.Crew will be opening an online store for their outlet items.  Here's the article from DailyFinance.com:

 

  

J.Crew to Put Outlet Store Online to Attract Bargain-Hunters 

 

By HUGH COLLINS Posted 7:00 AM 08/27/10

J. Crew Group Inc. (JCG) plans to let customers buy its outlet-store clothing online starting next month, making it easier to get its low-cost clothes at a time when consumers are counting every penny.

Clothing companies typically place outlet stores in out-of-the-way malls, forcing customers to drive long distances in search of a bargain. Now, J-Crew is hoping that it can tap this demand for bargains without undermining sales at its main stores.

Customers are "deferring, they're waiting, they're comparison-shopping, and people are a little nervous," CEO Millard Drexler said, according to The Wall Street Journal.

Online and outlet sales have both seen strong growth even in a weak economy.

J.Crew's profit almost doubled in the quarter ending July 31, hitting $34.9 million, from $18.6 million a year earlier.

 This sounds like bad news for J.Crew's earnings outlook and its stockholders (but good news for me!) I wonder, though:  Will the merchandise be factory store-quality or  will it be comprised of past-season items?  If it's the former, I would rather wait for the retail store to hold sales and buy the higher-quality items. 

Seems like I share my opinion with most of the readers over at http://jcrewaficionada.blogspot.com.  I read through some of the comments to the article and the consensus is the same:  J.Crew is sacrificing quality and classic styling as they attempt to churn out runway inspired , on-trend items.  In other words:  Too much edge and not enough prep.  Customers are less confident in the quality of their J.Crew purchases, especially items from the "Final Sale" section which offers no returns or exchanges.  

What do you think of the outlet store launching online?  Do you agree with the jcrewaficionada commenters?