CRS 481- Blog #9

Jos. A. Bank Takes Unusual Path:Retailer Has Record 4Q
April 8, 2009
The Wall Stree Journal: Business

Jos. A. Bank recently had its best fourth quarter EVER; in the company's 100 years of retailing their annual financial results never reached what they posted this past fourth quarter. While many other retailers of failing, Jos. A. Bank seems to be standing pretty well. With 461 stores across the U.S., mainly located in high-end, specialty store shopping centers, Jos. A. Bank is one company that tries to provide high-quality at a resonable price. And when the recession hit, Jos. A. Bank's prices became even lower, without decreasing their quality; this drove more people in to the store and allowed for the company to grow its top and bottom lines.

The company tries to cater to men in white-collar jobs that are struggling now that the recession has hit, and with prices lower than other retailers who specialize in men's suits, the company seems to be doing well. They are able to provide lower prices because they have come up with a way to eliminate the middle man and only directly source with vendors. The company also only supplies what is demanded and does not overstock their stores, while also only opening new stores that will be profitable and meet the company's financial criteria. The company is also doing major promotions during the recession...which is risky but seems to be bringing in customers: they "offered to refund up to $199 of a suit's price and allow customers to keep it if they are laid off through early summer."
These different techniques are reasons why Jos. A. Bank is succeeding during the recession.




I have personally always seen Jos. A. Bank as what I like to call "Off-Price"...meaning not very special, out-of-date, not up with the new styles, etc... but during a recession a suit is a suit...and if men need suits for their jobs they will not really care how fashionable it is, men will just look for cheap. If Jos. A. Bank is providing high-quality suits at a lower charge then its not wonder why their company is doing well...especially when catering to a target market that still had to look good in the workplace, whose jobs are not business casual. However, I believe if the whole "Business Casual" trend grows any further...Jos. A. Bank might want to reposition itself. For now, though, I guess the company is doing quite well.