J. Crew to launch new chain

|By:, SA News Editor

J. Crew plans to open a new budget chain called J. Crew Mercantile

The new concept could provide the company a new growth channel as it eyes an IPO or sale.

With an eye to the new "zero-sum" game of retail, Macquarie Securities analysts Liz Dunn thinks J. Crew might cannibalize sales away from its main brand with the new chain.