Rent a tux at Macy’s
On June 10, Macy’s (M) announced an agreement with Men’s Wearhouse (MW), a leading specialty retailer of men’s apparel, to open in-store tuxedo rental shops. In fall 2015, Macy’s will begin with 17 in-store tuxedo rental shops in the New Jersey, San Francisco, and Houston markets. The leading department store plans to extend the in-store tuxedo rental shops to 300 stores by fall 2016.
Macy’s will also partner with Men’s Wearhouse to introduce a digital tuxedo rental service on its website.
Focusing on men’s apparel
Macy’s agreement with Men’s Wearhouse will enable it to reach more male consumers. In fiscal 2014 ending January 31, 2015, men’s and children’s merchandise accounted for 23% of Macy’s net sales.
In 2014, Macy’s launched the Ryan Seacrest Distinction collection, which includes tailored suits, shirts, ties, and cuff links. The collection was designed by Ryan Seacrest, a popular TV and radio personality, in association with Randa Accessories, Peerless Clothing, and PVH (PVH).
Expanding special occasion capability
Macy’s in-store tuxedo shops will increase its ability to meet consumer needs related to special occasions like weddings. Macy’s has been improving its wedding and gift registry business and has also enhanced its engagement and wedding rings selection, wedding party suits and dresses, accessories, jewelry, and other occasion-related categories.
Men’s Wearhouse will have an exclusive ten-year right to supply tuxedos for rental at Macy’s. At the same time, Macy’s will continue selling tuxedos from its own collection.
Department stores make up over 6.4% of the SPDR S&P Retail ETF (XRT).