The Men’s Wearhouse

Beyond Suits: Corporate LeadershipTailor-made for the Community

Group E:Leo

TonyMohammad

Mission

Maximize salesProvide valueTop quality service

…while upholding values…and have fun doing it!

Values

Nurturing CreativityBeing HonestEnhancing communitySelf-actualizationBuilding Relationship

History

1970-George Zimmer graduates from college; works sales for father in coat manufacturing1973-Opens first Men’s Wearhouse in Houston, TXExpands outside Texas in 1981Over 100 stores nationwide by early 90’s1992-Company goes public

History

1994-1998-Averages one store opening per week1998-Exceeds $1 billion in sales 1999-Enters tuxedo rental business: Now the largest tuxedo rental business in the country2000-Named on of the “100 Best companies to Work for” by FORTUNE Magazine: Six times in last seven years2005-Opens a chain of dry cleaning stores in Houston, TX

Corporate Identity

Zimmer is logo, identityEarly focus on service

“I guarantee it.”

Evolved to customer delight

“You’re going to like the way you look.”

Corporate Structure

District Manager (72 districts) usually oversees a state; involved in land dealsArea Manager (7 Area Managers) oversees several statesRegional Merchandise Managers (oversees purchasing for a region)Store Manager (runs a store)

All report indirectly to CEO George Zimmer via VPs

Products & Brands

Men’s Wearhouse Retailer of men’s

tailored business attire

Targets middle/upper-middle income

Designer, brand name and private labels

Tux rentals/sales

Products & Brands

Moores Clothing for Men Canadian retailer

of menswear Similar product

line, clientele

Brands Offered

Bostonian (shoes)Stacy Adams (shoes)Kenneth Cole (shoes)Pronto-UomoGary Player

Joseph & FiessWilke RodriguezCampia ModaJay Jone-NYBotany 500

Financial Performance

“Whether you’re talking about a person, a community, a corporation or a country, the true mark of our lives is our ability to bounce back from adversity”

George Zimmer

Financial Performance

Net sales increase constantly

$0.00

$0.50

$1.00

$1.50

$2.00

Fiscal year

Annual Sales(billions)

2004 2005 2006

Store Layout

MW perception is high-qualityItems are neatly and nicely displayedSpine layout (free flow, grid, & loop)Shelved itemsHanging itemsPegged itemsFolded itemsValue/fashion imageAmbiance is upscaleWell lit storesCategory signage (name brands)MW stores are not cluttered

Merchandise Buying & Handling

Narrow & Deep (not many brands but a lot of selections)Some suits are made by MW, but most are outsourced to millsMW owns most of its suits templates (huge variety)Suits are purchased by Buyers several times per year from vendors primarily in Europe: Long-term agreements.Suits are purchased factory directPlanners/Splitters plan when merchandise is purchased and where it is to be sentAll merchandise passes through MW’s Houston DC (largest in the country)From Houston to “Spider” hubs strategically located throughout the U.S.

Merchandise Buying & Handling

All merchandise is sent via FedEx from Houston to “Spider” hubs (Flat packs) If a store has an item that is not carried at another store-2 day deliver via FedExOnce a style hits the West coast, it has been in Europe for 1.5 yearsFootwear is bought at the beginning of the fashion season56 Brands lease agreement boughtMW owns two Canadian manufacturing mills12 Brands-SKUs (stock-keeping unit)All stores are integrated (POS (point-of-sale) Oracle & MicroSoft Merchandise turnover ratio is high

Reasons to Shop at Men’s Wearhouse

30 to 40 less expensive than Nordstrom’sCustom tailoring for the life of the suit or pantsExceptional customer service by Wardrobe ConsultantsCustom-made suitsHigh-quality clothingDelivery of altered clothingMW wants to be your clothier for lifeMW guarantees that you will be satisfied with purchase

Your pants are hemmed while you waitYour MW suits, slacks, and tuxedo are pressed for free at any MW store for lifeProfessional on-site tailoring (24-hour tailoring upon request)Gives a portion on its proceed to local charitiesEarn $50 Rewards Certificate for every $500 spentReceive invitations to special events and private sales

Success…

“By treating its’ employees with dignity, respect and being sensitive to their minds, hearts, and financial security, the company has built a deep sense of loyalty, commitment and ownership within its’ employees.”

translates into quality relationships with its’ customers who tend to spread the word to their friends and return again and again, year after year.

Work Cited

Interview with District Manager Nate Peterson (Oregon) May 15th, 2007Interview with Wardrobe Consultant Justin Jones, May 12th, 2007 (Salem branch)Mens Wearhouse website

Questions?