Jos. A. Bank is killing one of the main reasons that people shop there
The company's owner, Men's Wearhouse, is scaling back on the ridiculously cheap discounts that have helped make Jos. A. Bank a household name.
The "buy-one, get-several-free" deals on men's suits, sport coats, sweaters, and more are no longer sustainable, Men's Wearhouse CEO Doug Ewert says. Men's Wearhouse purchased Jos. A Bank last year for $1.8 billion.
"We see an opportunity to expand on other reasons to shop at Jos. A. Bank, beyond just deep discounts," Ewert told Business Insider.
The promotions run so frequently that they have become the butt of late night TV jokes, which has eroded the brand's public perception. Jos. A. Bank's same-store sales fell 2.5% last year, while Men's Wearhouse namesake stores saw comparable sales rise by 3.9%.
But the deals also gave cash-strapped customers a big incentive to shop there.
Jos. A. Bank customers are typically older, prefer classic styles and appreciate quality and value.
"They are not trend watchers," Ewert said.
The "new" Jos. A. Bank will try to attract a younger, somewhat trendier customer with tailored and tech-friendly clothing.
Men's Wearhouse will also be adding some collections from its upscale designer label, Joseph Abboud, to Jos. A. Bank stores this year. Joseph Abboud suits cost between $600 to $800, while Jos. A. Bank suits are typically in the range of $225, Fortune reports.
"We see opportunity to update the entire business," Ewert told Business Insider. "We're updating the products, updating customer engagement... and updating the services offered in stores."