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From Bloomberg: Men's Wearhouse Store-Closing Plan (over 250 stores) Sends Company's Stock Soaring

post #1 of 3
Thread Starter 

http://www.bloomberg.com/news/articles/2016-03-09/men-s-wearhouse-owner-to-close-hundreds-of-stores-as-sales-slide

 

I thought that we ought to have more "business of fashion" discussions, if anyone is interested.

 

Excerpted:

 

"Tailored Brands Inc. jumped the most in more than two years after announcing plans to close hundreds of stores, part of a cost-cutting push for the owner of Men’s Wearhouse and Jos. A. Bank.


The Houston-based company plans to shutter about 250 locations this fiscal year, including all of its outlet stores, according to a statement Wednesday. Tailored Brands also is reducing expenses by about $50 million by slimming down its operations and overhead."

 

"Tailored Brands, the largest retailer specializing in men’s suits, is scrambling to align its two major divisions. While sales have been growing at Men’s Wearhouse, Jos. A. Bank faces a customer exodus. Last year, management abandoned Jos. A. Bank’s “buy one suit, get three free”-style promotions, irking longtime shoppers. That sent the chain into free fall. Jos. A Bank’s same-store sales plunged 32 percent last quarter, compared with a 4.3 percent gain for Men’s Wearhouse."

 

"As part of the store-closing plan, the company will shut 80 to 90 standard Jos. A. Bank stores, as well as 58 outlet stores. Between 100 and 110 MW Tux stores also will be eliminated, part of a shift of tuxedo rentals to its full-line stores and partner Macy’s Inc."

Apparently, a fake deal is better than no deal at all?

 

post #2 of 3

I'll jump in with a few things:

 

Not surprised at the Tux closings for Men's Warehouse.  

 

- I do have a Men's Warehouse Tux story, although thankfully I didn't have to wear one. My mom works with a young woman who went to a relatively new Men's Warehouse store to rent tuxedos for their wedding.  Well, the staff didn't know what they were doing and it was extremely frustrating.  She is a very nice person (so say many people) but was apparently ready to scream because of the staff being completely incompetent.  Of course this would've been the perfect time to start offering alternative suggestions if I knew her, but it's not my place to speak up.  If I knew her fiancé I could've signed him up and we could've unleashed the hounds though haha!

 

- Service counts for a lot, and having never been in one of these stores I can't speak to their customer service but if it's anything similar to the service story above I can see why the Tux rentals are getting flushed down the toilet.

 

- I rarely buy clothes, but when I do I drive two and a half hours to a store that has excellent service and manages to survive while doing zero e-commerce. I end up spending more than I anticipated and usually as much as I can possibly afford. On the way I drive by at least three Men's Warehouse stores and one Jos. A. Bank that I know of, in various locations.  Sometimes I don't spend much though, and only buy one sale item and the staff are never pushy.  Ever.  I have one salesman I deal with, and the other's know that and will help me if he is busy but once he is free they let him take over.  It's hard to describe how they will let you look and not hover but can tell if you need help, it kind of amazing.

 

 

tl;dr version - Service, quality, and building relationships count.  If you don't have these, you are at the mercy of retail trends and sale cycles like everything else.  Just my opinion though.

post #3 of 3
And at the same time Amazon is entering the territory with men's suits, apparently, made in Canada.
http://www.businessinsider.com/amazon-suit-reviews-2016-3
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