Dive Brief:
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Men’s Wearhouse CEO Douglas Ewert is moving to expand its customer base by broadening its Joseph A. Bank brand, he told CNBC Tuesday.
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The menswear company acquired American designer brand Joseph Abboud in 2013, and, after a bruising back-and-forth takeover battle, acquired Joseph. A. Bank last year.
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Joseph A. Bank is known for its affordable suits and heavy discounts, but Ewert says the company will be building on that retailer’s loyalty with expanded merchandise offerings.
Dive Insight:
For Men’s Wearhouse, it’s a tale of two Josephs. In Joseph Abboud, the retailer acquired a venerable American brand with a solid reputation for quality and style; in Joseph A. Bank, it acquired a dependable discount brand. But Joseph A. Bank needs more than what Ewert calls a “hyper-aggressive promotional strategy.”
For one thing, it would help the brand move away from a cheap-suit reputation. But as the economy improves, a greater diversity of offerings will help keep and expand its customer base as men are able to afford better suits at a time when menswear is booming.
"The Joseph Bank brand has a very loyal customer, and they respond to the quantity discounts," Ewert told CNBC's "Squawk on the Street.” But the plan is to develop "additional products to get a deeper penetration into their closet and give them another reason to shop with us besides just buy one get three free."