Bank Branching Out Into Tuxedo Rentals

Jos. A. Bank Clothiers is getting into the tuxedo rental business. The menswear cataloger/retailer plans to launch the new initiative this month on a test basis in about 5% of its 474 stores. Bank aims to rollout the initiative to more than half of its stores in the spring.

Customers had been asking the merchant for a tux rental service, according to a statement from R. Neal Black, president/CEO of Jos. A. Bank. “Although we are a national leader in the sales of tuxedos, we have not offered the specific formalwear products and services that are most commonly used by wedding parties and these products complete our formal assortment,” Black said.

Hampstead, MD-based Bank has partnered with a national distributor who will own the formalwear inventory and deliver the orders to its stores. This will reduce the required investment and risk associated with starting up a new operation, said the merchant’s chief financial officer David E. Ullman.

“With this structure, we expect that the incremental sales volume will add to the operating margins of the Stores segment, although the gross profit rate will be lower than we achieve with our merchandise sales,” Ullman said. “Also, the tuxedo rental business has the potential to generate significantly higher gross margins if we choose to invest in our own infrastructure in the future.”

Partner Content

Hincapie Sportswear Finds Omnichannel Success in the Cloud - Netsuite
For more and more companies, a cloud-based unified data solution is the way to make this happen. Custom cycling apparel maker Hincapie Sportswear has leveraged this capability to gain greater visibility into revenue streams, turning opportunities into sales more quickly while gaining overall operating efficiency. Download this ecommerce special report from Multichannel Merchant to more.
The Gift of Wow: Preparing your store for the holiday season - Netsuite
Being prepared for the holiday rush used to mean stocking shelves and making sure your associates were ready for the long hours. But the digital revolution has changed everything, most importantly, customer expectations. Retailers with a physical store presence should be asking themselves—what am I doing to wow the customer?
3 Critical Components to Achieving the Perfect Order - NetSuite
Explore the 3 critical components to delivering the perfect order.
Streamlining Unified Commerce Complexity - NetSuite
Explore how consolidating multiple systems through a cloud-based commerce platform provides a seamless experience for both you, and your customer.