JoS. A. Bank Clothiers, the no-week-goes-by-without-a-sale retailer, is looking to burnish its credentials as a company that saves guys money on high quality clothing with the launch of its first factory store concept in Riverhead, NY.
"We are excited about kicking off our factory store initiative," said R. Neal Black, president and CEO of the company, in a statement. "We believe this concept could represent a significant long-term opportunity for the company and could result in an additional 50-75 factory stores in the U.S. Further, we feel that the locations we have chosen as part of the initial test phase reflect a good representation of the target market."
While the company is opening the first of the concept stores, it also launched a new website, www.josbankfactorystores.com, that gives consumers the options of buying the same items online. The website boasts of "Everyday values direct from our factories." As a point of comparison, dress shirts on the factory store site are priced at $29.99 versus $79.50 on www.josbank.com.
Factory store openings scheduled for this month include one at Jersey Shore Premium Outlets inTinton Falls, NJ and another at Philadelphia Premium Outlets in Limerick, PA. The company is also looking to open two other factory stores this year at locations in Maryland and Texas.
Discussion Questions: Is JoS. A. Bank making the right move with its factory store initiative and website? What will it need to do to make this concept a success without negatively affecting its flagship business?