Dive Brief:

• J. Crew’s Madewell and department store Nordstrom are strengthening their partnership, the companies announced, doubling the number of stores featuring the mid-priced brand nationwide to 30.

• So far Nordstrom is the exclusive retailer selling Madewell merchandise outside of Madewell itself.

• “Madewell” is a New England clothing brand from the 1930s whose trademark J. Crew bought several years ago, only recently turning it into a lower-priced sub-brand that is turning out to be a winner for the struggling retailer. 

Dive Insight:

So far this looks like a win-win for both Nordstrom and Madewell. Nordstrom isn’t suffering the current woes of many department stores, which seem to have lost their footing and their place in the American retail landscape. Bringing in Madewell has been one of several successful moves Nordstrom has made to diversify its offerings to appeal to a range of ages and tastes, breaking a bit from its reputation as a staid, upscale retailer. The move, along with its other exclusive partnerships with Bonobos and Topshop Topman, may also provide Nordstrom with needed extra traffic. 

J. Crew can capitalize on this partnership by leveraging Madewell, the company's bright spot at the moment. J. Crew has been closing stores and laying off employees, and taking a hit to its reputation for quality. Meanwhile Madewell continues to do well, with comparable sales at the stores rising 12% in the first quarter of 2015.