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Why Jos. A. Bank is getting rid of ‘unnatural’ discounts

A Jos. A. Bank Clothiers Inc. Store Ahead Of Earnings FiguresA Jos. A. Bank Clothiers Inc. Store Ahead Of Earnings Figures
A Jos. A. Bank storePhotograph by Craig Warga — Bloomberg via Getty Images

Jos. A. Bank was recently mocked by Saturday Night Live for its ridiculous discounts. The company took it to heart and will no longer offer its “Buy 1 Get 3 Free” deal, Bloomberg reports.

Men’s Wearhouse bought the company in 2014. CEO Doug Ewert has plans to revamp the brand and broaden its appeal by adding more big-and-tall and slim-fit options, as well as an expanded shoe collection.

Last year, analysts had predicted that Jos. A. Bank’s sales would decline by 3%; it actually ended up being much worse with a 9% drop. Ewert has told Bloomberg that the 110-year-old brand just needs to be updated. He explained his thought process behind these new changes:

There’s a fair amount of evidence out there that there aren’t enough customers who want to buy four suits at a time or want to buy that quantity to get a deal. Taking away the unnatural quantity discounts will lead to more healthy transactions. Instead of a guy buying four suits and then we don’t hear from him for quite a while, we can sell him a suit and shirts and ties and maybe some shoes.

And it’s already paying off. Just last quarter Jos. A. Bank saw a 17% increase in footwear sales and a huge 41% increase in the number of slim-fit styles sold.