Dive Brief:

• New York City-based J. Crew has trademarked the brand “J. Crew Mercantile” and is searching for locations to feature what will be a lower-priced offshoot of the fashion retailer.

• The move could be compared to Ann Taylor’s Loft stores or Gap’s Old Navy stores, which started out as discounted little siblings and took off to outpace the more expensive brands.

• J. Crew Mercantile is part of a broader effort by J. Crew to grow its operations ahead of a potential public offering.

Dive Insight:

New brand offshoots can help a company or drag it down. Abercrombie & Fitch and Aeropostale recently closed down sibling brands, while Ann Taylor and Gap have found success. J. Crew is hoping that, with J. Crew Mercantile, it can capture more customers and increase its reach by offering apparel at lower prices without overly discounting its flagship brand.