Jos. A. Bank sales have continued in a downward spiral to finish off 2015, dropping almost one-third as reported on February 16, 2016, by The Baltimore Business Journal. The formerly Hampstead-based company’s new owner is struggling with turnaround plans as average transactions per store fell.
Executives are now moving towards store closures and cost cuts at the troubled brand after previously bringing in global advisory firm AlixPartners to look at expenses. Tailored Brands CEO Doug Ewert said in a statement, “Although we have seen improvement since the holiday selling season, we are still not satisfied. We are taking actions to reduce costs and rationalize the store base.”
Men’s Wharehouse bought Jos. A. Bank for $1.8 billion in 2014 and created the holding company Tailored Brands to cover the two brands.
Since the purchase, the leadership in the company has set out on a complete overhaul for Jos. A. Bank that included redoing its clothing assortment and discontinuing the chain’s well-known “buy-one-get-some-free” discount. But executives turned back to the “buy-one-get-one” and even “buy-one-get-two” promotions after sales collapsed at the end of the year.
With the 31.9 percent drop in sales, Jos. A. Bank closed its fourth quarter far behind other Tailored Brands’ other chains. One has to wonder how simple the solution can be? Is it possible that Jos. A. Bank is out of touch with its audience and that companies like Trunk Club are snagging Millennial market share? Or could it be just a case of training the staff in the stores to better handle the new, modern shopper?
Ask NY Times best-selling author and international sales expert Grant Cardone and he’ll most likely respond with looking at the actual processes happening in the stores? Cardone created Information Based Selling as a simple sales process any salesperson can follow that is tailored for the customer, not the company.
How long does it take to get greeted when you go into their store? What kind of greeting can the customer expect? Are the salespeople legitimately interested in finding out why the client is here and what problem(s) are they looking to solve? How many options do they show the client and most importantly, are they asking for the business and attempting to close the transaction?
To save companies time and money from having to hiring a trainer or taking salespeople off the floor and sending them to workshops, Cardone created a cloud-based sales training platform designed to add sales skills and ongoing training at the store level with full reporting and accountability for leadership. Companies utilizing this tool with Cardone’s help have seen record increases in sales and profitability up to 40%. Matt Manero of Commercial Fleet Financing says of Cardone University, “If you want every aspect of your company to turn into salespeople and get people to understand how to skill up, you need Cardone University. With the help of Cardone University, we do over 100 million in new sales annually.”
If you’d like more information about Cardone University for your company you can visit their website or call 310-777-0352 for an initial opportunity assessment and custom solution presentation.