Plummeting Sales Call for Closures of 250 Jos.A. Bank Stores

Jos. A Banks

Jos. A. Bank net sales plunged 32% in the fourth quarter, which ended Jan. 30. Known for their extreme discount sales “buy one get three free” which the retailer discontinued in October of 2015 after a Saturday Night Live skit. Instead the retailer has been targeting a millennial market that values craftsmanship and heritage but the correction with the brand has been costly.

Doug Ewert, Tailored Brands chief executive officer stated, “While our fourth quarter and full year results were consistent with our revised guidance, we remain very disappointed by the weak Jos. A. Bank results. Our transition away from unsustainable promotions has proven significantly more difficult and expensive than we expected. We do, however, remain confident that Jos. A. Bank offers a longer-term opportunity to profitably grow market share in the menswear business. Additionally, our Men’s Wearhouse, Moores, and K&G brands continue to perform well, with profitability in line or ahead of our expectations.”

“As part of our store rationalization program we plan to close approximately 250 stores during fiscal year 2016. The store closures fall into three categories. First, we expect to close 80 to 90 full-line Jos. A. Bank stores which we believe have limited potential for meaningful profit improvement. Second, we will close all Jos. A. Bank (49) and Men’s Wearhouse (9) outlet stores. We have determined that outlet stores, which collectively were not profitable, are not sufficiently differentiated enough from our core offerings and have not resonated with our customers. Lastly, we intend to close between 100 and 110 MW Tux stores. These closings are a continuation of our strategy of migrating tuxedo rentals to full line stores and reflective of our new partnership with Macy’s, Tuxedo Shop @ Macy’s. We have refined our Tuxedo Shop @ Macy’s rollout schedule and now plan to open 166 stores in 2016 with the balance of 122 stores to be opened in 2017.”

We contacted the local Jos. A Banks store located in the Cool Springs Galleria where a representative told us they have no news whether or not their location will close at this time. They do feel confident they will not be one of the locations to be closing.  Cool Springs Galleria is located at 1800 Galleria Boulevard,Franklin.

Recently,there have been a number of other major retailers announcing closures including Kohl’sWal-Mart, JC Penney Macy’s, and Gap. 

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