Will J. Crew Change If Bought By Fast Retailing?

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March 13 (Bloomberg) -- Marvin Traub Associates President and CEO Mortimer Singer discusses retail mergers and acquisitions on Bloomberg Television's "Bloomberg Surveillance.” (Source: Bloomberg)

Is clean.

It is the urge to merge.

Retailers are meeting -- mating.

Unit close -- uniclo acquires j.crew.

This is the world of mortimer singer.

The talent just walks out the door.

It can walk out the door.

Because you need a balance of left and right brain, it is hard to find the right executives.

In j.crew, they have one of the brightest of the bunch.

Hopefully they can keep him if something happens.

They have to.

In terms of the j.crew tie up, if they were to absorb j.crew, it would be part of the middle brain -- brand of retail.

Other companies have tried this, the gap with banana republic, gap, and old navy.

Is it a successful formula?

I think it is for this grouping of companies.

It could be a retail nirvana.

Uniqlo doesn't have much of a presence here.

J. crew has 450 stores here.

Uniqlo has sourcing expertise.

J. crew has a 45% gross margin.

They occupy a little bit of a different segment.

Do you keep the brands separate?

You are all retail mavens.

What is in the dna of j. crew?

They have made the shopping experience exciting and fun.

They get what people want to wear.

It is about having the designer work with a merchant and the merchant comes in and says we will sell x amount of these kinds of products and we have to move inventory.

Coming up on they have figured out how to merge hot with girl next-door.

They took things that were separate.

They did it.

It has an adage, but it is a wholesome marriage.

What they did is they took some elements of the brand and created a lifestyle.

They brought the lifestyle into their experience.

It is the merchandise first.

The females migrate to the coffee table where there are girl magazines.

There is all this change.

J. crew merging and maintaining -- mating.

Why are they 1985 or 1965, still rocking the house in 2014? magazines like people magazine are moving inventory off the shelves.

Those magazines are the quick fix impulse magazines that get people going to the stores.

Everyone is wearing track pants and work out clothes as normal clothing.

Lululemon to get to a new love -- a new level.

Is this a hot trend for now?

It will continue.

The trend will be about making those products more wearable.

You can wear it throughout the day.

This can be yoga to lunch.

At yoga to lunch.

This text has been automatically generated. It may not be 100% accurate.


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