Once shoppers get used to buy-one-get-one-or-more deals, as they had at Jos. A. Bank Clothiers, they stop coming back when the promotions end.
Jos. A. Bank’s parent, Tailored Brands Inc., found that out as it attempted to fold the former Maryland-based retailer into its Men’s Wearhouse portfolio and move away from discounting, perhaps too quickly.
After ending the year with slumping sales and a $1 billion quarterly loss, the company is preparing to close 250 stores, including about 140 Jos. A. Bank locations.
The staggering problems facing Tailored Brands suggest that its corporate predecessor, Men’s Wearhouse, paid too much for Jos. A. Bank in the $1.8 billion acquisition in 2014 and overestimated its ability to integrate the chains quickly, several experts said Thursday.
Jos A. Bank used to be a place where, if you knew which lines to choose from and when to shop, you could get a good-enough suit for a great price. Then the Great Recession hit, and Jos became the place where you could buy four or five pretty bad suits for the same price.
The decline in quality may have as much to do with the store’s troubles as ending the massive discounts did.