Men's Wearhouse (NYSE:MW) is losing the battle for male shoppers to Jos. A. Bank (NASDAQ:JOSB), but according to analysts it's not because their customers don't love the way they look (even though they can't guarantee it anymore). What it really comes down to is the deals they get—or think they get.
Both go after the men-who-don't-want-to-spend-much audience, but Jos. A. Bank executives recently said sales are increasing, while Men's Wearhouse offered up a disappointing outlook for future months.
Men's Wearhouse has had a disastrous time in terms of PR recently, culminating in the loss of its founder and pitchman George Zimmer. But clearly, with its direct competitor doing just fine, there's something Jos. A. Bank is doing that Men's Wearhouse isn't.
As it turns out, that thing is offering deals that sound absurdly irresistible. Jos. A. Bank gets men in the door with promotions like "buy one, get seven free" sales. And once those customers are inside, there's a good chance they'll dish out some extra money for things like ties and belts.
"Those promotions are why Jos. A. Bank is getting foot traffic that Men's Wearhouse isn't," Brian Pitera, a principal of consultancy A.T. Kearney, told Business Insider. "To compete, Men's Wearhouse is going to have to step up promotions and advertising."
Even better for Jos. A. Bank, its must-see deals don't even cost them since their merchandise is marked up in anticipation of the bargain hunters buying in bulk. The cost of the "free" suits is built into the one that you buy.
"Critics can hate on Jos. A. Bank's promotions and call them a bait-and-switch, but they actually have a tried-and-true tactic for getting people in stores," Pitera pointed out. "That's more than Men's Wearhouse can say."
- See this Business Insider story
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