Jerry Seinfeld On Jos. A. Banking Concern As Well As Men's Warehouse

The Jos. A. Bank in addition to Mens Warehouse pacman similar trip the calorie-free fantastic toe fascinates me. These are companies I don't quite larn selling products I don't want. But the companies possess got surprisingly high valuations in addition to inwards Jos. A. Bank's (JOSB's) illustration the describe of piece of job organisation appears remarkably consistent in addition to remarkably profitable.

I asked my readers to create unopen to due-diligence for me, taking photos of JOSB stores over the Black Fri sales. I got dorsum a small, biased sample. Most my readers (with a value-manager exception noted below) are non the variety of people who store there. Influenza A virus subtype H5N1 typical answer I got was this:

This [with attached photos] is the Jos Bank store at the Galleria Mall inwards Ft Lauderdale, FL. I started taking pictures in addition to they asked why I was doing it. Tried to accept the front end from both sides in addition to from the escalator in addition to thence you lot larn an idea, took pics of shelves in addition to prices, promise it helps. This was Black Fri 7:30 pm, I was the only person inwards the store.

Several other people said that they were the "only mortal inwards the store". And withal JOSB reported inwards their conference telephone telephone that their sales over the Black Fri catamenia were great. Here is a straight quote from their terminal conference call:

We're especially happy amongst our rigid sales inwards calendar week iv of Nov which includes Thanksgiving in addition to Black Friday, in addition to also the commencement calendar week of Dec in addition to thence far which includes Cyber Monday. Customers actually responded to our combination of fresh in addition to timely production offerings, rigid door-buster pricing in addition to compelling values throughout the store. And nosotros achieved these rigid sales without deterioration inwards the efficiency of our advertising spending in addition to without a deterioration of our gross lucre margin rate.

Even past times the standards of retail advertising at that topographic point is double-talk here. The fellowship does possess got "door-buster pricing" but it also has nine months of inventory, something they justify on the footing that a broad offering is a competitive payoff in addition to that men's fashion changes slowly. "Fresh in addition to timely production offerings" is non something I associate amongst JOSB. Nor is "fresh in addition to timely" consistent amongst JOSB's accounts. And the sales aren't "door busters" if the seeming absence of customers is anything to perish by.

Whatever: JOSB seems to work. For years they possess got had bully sales from lightly trafficked stores. Indeed Vitaly Katsenelson (someone I brand a holler for of reading) has commented on it inwards the past. This is from 2008 (at the peak of the crisis). Vitaly made a pile of coin on the stock:

When I recollect of the Jos. A. Bank (JOSB), I recollect of Yogi Berra’s maxim “Nobody goes at that topographic point because it is equally good crowded.” 

Only inwards the illustration of JOSB, it sounds similar this: “EVERYBODY goes at that topographic point because it is NOT crowded.” As almost men who store at that topographic point volition attest, you lot are lucky to run across in addition to handful of customers store [...] at whatever given time. Nevertheless, it seems that JOSB operates inwards a real dissimilar economic scheme in addition to at that topographic point is an incredible disconnect betwixt its functioning this twelvemonth in addition to the remainder of the economic scheme equally good equally other retailers. 

JOSB reported third quarter numbers pair of days agone in addition to they were stellar fifty-fifty past times a salubrious economy’s standards. 

They were genuinely incredible considering that negative double-digit same-store sales for retailers possess got larn the norm. JOSB reported same store sales of 7% for the quarter (the fellowship doesn’t written report monthly numbers anymore). Total sales were upwards 13.7%. Operating profits earlier taxes were upwards 20.3%. Cash was upwards year-over-year, in addition to inventory increment lagged sales. Every unmarried metric was precisely beautiful.

And Vitaly does store at JOSB - in addition to proudly shows me his inexpensive suits. He clearly spends a pile of coin without achieving sartorial elegance. [Still he made proficient coin on the stock in addition to I would accept that over a decent fashion feel whatever day...]

One of JOSB's tricks powerfulness endure that they proceed the average ticket per customer very high past times getting them to purchase several suits in addition to multiple ties in addition to shirts simultaneously amongst their "buy-one-get-three-free" marketing. Influenza A virus subtype H5N1 high average ticket agency you lot tin possess got lots of sales but non many customers.

[Contra: selling iii suits right away would tend to fill upwards almost men's wardrobes. In almost houses the married adult woman has iii to 5 times the hanging infinite of the husband. Six suits would fill upwards mine permanently. Its difficult to larn supply customers when their wardrobe is already packed amongst clothes.]

The province of affairs at JOSB is in addition to thence anomalous that people amongst a amend feel of humor than me precisely determine to express joy at it. I can't create whatever amend than this:






John