My headline refers to the recent announcement by Mens Wearhouse that the promotional cadence at its subsidiary Jos. A. Bank is not sustainable. The question is whether Bank can regain some credibility (and margin) without sacrificing too much sales volume in the process. Here’s a comment on the topic that I recently posted on RetailWire:
It will take some time for Joseph A. Bank’s new owners to figure out the right formula. What’s the right mix of promotions that will drive higher gross margin rates — and even gross margin dollars, which are the name of the game — at some expense to topline sales? And are there other ways to drive sales (and the brand) through more credible pricing and merchandise quality?
I agree with most of the comments by other BrainTrust panelists about testing and being deliberate, instead of walking into the same trap that JCP set for itself two years ago.