Men's Wearhouse adds additional layers with expanded casual line, new formalwear - Brief Article

Discount Store News, April 3, 2000 by Mike Duff

FREEMONT, CALIF. -- Men's Wearhouse has succeeded in rolling out across the United States and into Canada, but now it's turning much of its energy to an ambitious plan to reconstitute its core Men's Wearhouse stores, expand unit size, and enhance or launch key categories.

Those new operations should make Men's Wearhouse more competitive with a range of retailers, including mid-tier operations, big-and-tall outlets and even Target.

In a way, the company's store growth and its updated operational strategy reflect one another. Men's Wearhouse has expanded and has purchased businesses in Canada and the United States along the way.

In Canada, it purchased the Moores chain and is currently redesigning operations to bring them into line with what Men's Wearhouse does in the United States. In the United States, the company acquired K&G, a weekend-only operator that sells suits starting at price points considerably lower than those available in Men's Wearhouse. Along the same lines, it developed the Suite Warehouse concept to reach urban markets.

But the company's heart is the Men's Warehouse store, representing 450 of the 501 units the company operated in the United States as of Jan. 29--and that's being overhauled.

A tailored-suit operation at heart, Men's Warehouse won't walk away from the coat-and-slacks business at all. It is expanding its location from about 5,000-sq.-ft. on average to about 7,000-sq.-ft. to absorb new and expanded categories beyond suits. In those locations where sales floor expansion isn't feasible, a few coats may depart, but not enough to confuse anybody, said Eric Lane, coo. "When a store hangs as many coats as we do, when you walk in, you'll see enough coats," he told DSN.

Men's Wearhouse has raced to expand nationwide over the past several years, entering the New York City market about two years ago, for example. Today, the company is in all but seven principally rural states. Coverage elsewhere includes most major markets, although Men's Wearhouse is still eyeing several significant regions on a fill-in basis.

Because of the new stores, many existing Men's Wearhouse locations have been without a serious face lift for a decade or so. Those stores will get a new color scheme, a reduction in the amount of chrome-and-glass fixturing and a fresh sign package, and an addition of 2,000 sq. ft. wherever feasible.

"This year, we've got about 50 stores we're looking at remodeling and expanding," said Rich Goldman, a company founder and executive vp with responsibilities for merchandising and marketing.

Men's Wearhouse has also launched a casual-clothing initiative. Most of the attention will be on 'the dressy end of the continuum. Although elements like casual cotton pants will be features, tailoring will be offered.

Men's Wearhouse has been getting into casual clothing gradually. According to NPD Group, men spent $2.7 billion on suits in 1998, or about 5% of the clothing that they purchased that year, down from $3.3 billion, or 7.7% of their purchases in 1993. Five years ago, Men's Wearhouse offered little casual apparel, but now the category accounts for about 35% of company's sales.

In a new plan, sales floors will be restructured to give casual a lift. While a final layout hasn't be settled upon, sportswear will be conspicuous.

"Sportswear is going to be relocated to the front of the store to soften the look as you go in. Sportswear is more of an impulse buy than most of the other product categories we carry, so we'll get it into the higher traffic areas of the store," Doug Ewert, gmm, said.

One area where the operational changes come together is shoes. The assortment will be expanded generally and open up two areas specifically, casual offerings--dressier casual rather than active--and plus sizes.

Demand for large men's apparel has prompted Men's Wearhouse to devote additional floor space to that segment as well. "Over 20% of our business is big and tall, and it's growing," Ewert noted.

Yet, while the other initiatives represent expansion of a current operations, Men's Wearhouse is getting into a new business, tuxedo rentals.

The company will center the tux business in a central location. About 215,000 sq. ft. of a new distribution center set on a recently purchased 46-acre Houston site will be devoted to tuxedo rental and e-commerce. The tuxedo business may expand to include the company's other U.S. and Canadian banners.

For Men's Wearhouse, today's initiatives may be diverse, but the point of each comes back to a central issue. "The goal now is to grow our sportswear business but also many other categories like big-and-tall products, shoe assortments and tuxedo rental, and just become a better service provider to our customers," said Ewert.