Jos. A. Bank tries QVC to build brand recognition

In an effort to build brand recognition, Hampstead-based Jos. A. Bank Clothiers Inc. has partnered with West Chester, Pa.-based QVC Inc. to sell its products on television and on the company's Web site.

The partnership marks the first time the 99-year-old menswear retailer will use an intermediary to sell its products, which it sells directly to consumers through stores, catalogues and on the Internet. If the partnership is successful, the company might look into selling its products in department stores, said David E. Ullman, vice president and chief financial officer of Jos. A. Bank.

QVC can help Jos. A. Bank reach a whole new demographic: women who buy clothing for men, Ullman said. Most of the clothier's customers are male. QVC's cable channel reaches 86 million households and has 7.1 million active customers, 91 percent of whom are women.

Selling through QVC also will expand Jos. A. Bank's presence on the Internet. QVC.com has 3.6 million unique monthly visitors.

For the company, it's a test of selling brand name, Ullman said.

The move was surprising to Thomas S. Saquella, president of the Maryland Retailers Association. They want to convey a certain type of image. I don't know if that image would be conveyed on QVC.

But QVC, the company that started in the 1980s selling radios for the shower, has become a powerhouse, according to Scott B. Krugman, vice president, industry public relations for the National Retail Federation. QVC is a very dynamic seller, he said.

Products sold today run the gamut. About a third of all products sold are jewelry, but electronics sales also are strong. Some top brands include Birkenstock, Hewlett Packard, KitchenAid, Kansas City Steak and Toshiba, according to the company.

Customers will pay about the same amount for the Jos. A. Bank's clothes whether they purchase them from QVC or directly from the clothier.

By the first quarter of 2005, QVC customers will have the option to order pants hemmed and monograms on clothing as they do in Jos. A. Bank stores. For the time being, they will have to go to actual stores for those services.

According to Ullman, working with QVC is a natural extension of growth that has occurred in other areas of the company.

During the first six months of this year, Bank's sales increased 28 percent to $161.9 million. The greatest portion of new growth is from opening new stores, Ullman said. The company plans to open 60 more this year. Catalogue and Internet sales are also growing at double-digit rates, he said.

Partnering with Bank also reflects QVC's plans growth. While the $5.4 billion company sells some activewear for men, it has not offered a full product line of men's clothing until now, said Carol Snyder, director of merchandising for QVC.com.

Jos. A. Bank premiered last night on a two-hour QVC show that featured some of its stain resistant clothing. The show preceded a 10 p.m. show featuring the winner and loser from last week's The Apprentice, on which contestants used QVC to sell products.

Jos. A. Bank has 242 stores in 36 states and the District of Columbia. Bank's stock price rose 54 cents to close at $29.25 yesterday on Nasdaq.

Copyright 2004 Dolan Media Newswires
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