Men's clothier Jos. A. Bank said Monday morning that it is entering the factory outlet business, opening five stores by the end of this fiscal year.
If the five stores perform well, the company will open more in the future. There is the potential to open 50 to 75 factory stores in the U.S., R. Neal Black, president and CEO of Jos. A. Bank said in a statement.
The company now has seven clearance outlet stores where it sells overstock from its full-priced stores. The company has developed new merchandise to sell in the newest stores.
"A factory store concept is a natural extension of our brand," Black said in a statement. "... We should be able to reach a unique customer base that has limited overlap with the customer base in our regular stores."
"This combination of successful factory store centers, where we have almost no current penetration, along with prospective new, underserved customers is the basis of our opportunity," Black added.
Jos. A. Bank had said during a recent earnings conference call that it would soon make an announcement about entering the outlet business.
It is part of a strategy by the company to look for new opportunities for growth. It is also expanding its tuxedo rental business and line of clothes for "portly" men.