men's and boys' Clothing and Accessory Stores

SIC 5611

Companies in this industry

Industry report:

This category includes establishments primarily engaged in the retail sale of men's and boys' ready-to-wear clothing and accessories.

Industry Snapshot

In 2005 Americans spent $9.44 billion in retail establishments specifically devoted to men's apparel, an increase from $9.06 billion in 2004 and almost $1 billion more than in 2003. After several years of the trend toward discounters, upscale was returning in 2004 and 2005, as luxury and specialty items were hot again. Women were no longer buying most of the clothing for the men in their lives; the men were buying for themselves. Competition for customers was heating up as well, as retailers struggled to stand out from the crowd.

Although the industry is notorious for its aversion to trends and shifts in fashion, men's apparel is offered in a wide variety of retail formats, including upscale design and specialty shops, department stores and retail giants, and discount men's clothing stores. Significant shifts in 2007 included a decrease in retail prices on men's apparel despite prices on all goods and services rising 4.1 percent. Also, young men became a growing target for accessories purchases.

According to the U.S. Census Bureau, men's clothing stores reported combined sales of $8.6 billion in 2008. As the economy continued to struggle sales fell 6.5 percent to $8.0 billion in 2009 prompting some industry long time standouts to implement their own initiatives to spur sales.

Organization and Structure

The men's and boys' segment of the apparel and accessories industry was relatively small. Historically, marketers focused on the women's market, assuming that they were more concerned than men regarding fashion. In 1990, the men's and boy's category generated just more than 10 percent of total sales in the accessory and apparel category. At that time, the women's ready-to-wear and specialty stores commanded close to 67 percent of the category, while the family clothing stores garnered roughly 29 percent. Businesses in the industry hoped that growing fashion awareness among men and boys would increase the industry's percentage of sales.

Since they carried narrow product lines but great depth within those lines, men's and boys' apparel and accessory stores were classified as specialty retailers. Historically, retailers of men's and boys' clothing and accessories focused on particular segments of the industry. These segments usually mirrored the five divisions into which menswear manufacturers were divided: tailored clothing, including suits, overcoats, topcoats, sport coats, and separate trousers; furnishings, including shirts, neckwear, sweaters, knit tops, underwear, socks, robes, and pajamas; heavy outerwear, including jackets, snowsuits, ski jackets, and parkas; work clothes, including work shirts, work pants, overalls, and related items; and other, including uniforms, hats, and miscellaneous items.

For nearly 150 years, these categories prevailed at the retail level. Even department stores organized their men's and boys' wear departments according to these categories. Beginning in the late 1960s, however, men's and boys' wear stores moved away from specialization into more diversified retail formats that offered a variety of clothing lines.

The trend toward large diversified stores accelerated during the 1980s. By the 1990s, superstores offering huge selections at discount prices were flourishing. Companies such as S&K Famous Brands, Inc., Today's Man, Inc., and The Men's Wearhouse, Inc. that were started in the late 1960s and early 1970s enjoyed tremendous growth in the 1990s as consumers flocked to the stores in search of stylish clothing at a discount. Although these stores focused on the tailored wear segments, they also carried huge selections in all categories in an effort to provide convenient one-stop shopping for customers.

The locations of men's and boys' stores underwent changes as the superstore format became popular. Many men's and boys' wear retailers moved out of the high-rent cities and malls into less expensive, but larger, suburban locations. The new superstores, which were sometimes more than 20,000 square feet, were often located in strip shopping centers or stand-alone buildings. To avoid high rents, these superstore retailers were willing to locate off the beaten track.

Competitive Structure.
Owing to an increase in the overall fashion consciousness of American men, the industry experienced a rapid growth stage during the 1960s. The nature and intensity of competition in this industry has varied considerably since then. During most of that decade, rising demand for men's clothing and accessories encouraged new entrants. By the 1970s, however, the number of menswear stores was decreasing. Competition increased during the 1970s as department stores and specialty retailers battled for market share in a declining market. Demand picked up again in the mid-1980s resulting in a rapid increase in the number of stores.

Throughout the 1970s, department stores, which enjoyed the advantages of location and customer recognition, appeared to have a competitive edge over the specialty stores. For this reason, many retailers that entered the industry in the 1970s were off-price stores that hoped to compete with department stores by offering low-priced merchandise. It was not until the mid-1980s that department stores were the main competition of the men's and boys' specialty retailers.

The downward economic trend of the late 1980s, however, was a boon for discounters. By 1990, many off-price specialty retailers enjoyed a competitive advantage over department stores whose merchandise was often priced 30 percent higher than that of the discounters. Since even affluent customers were increasingly willing to shop at off-price stores, traditional retail formats continued to decline.

Financial Structure.
Businesses in this industry were often small, privately owned stores, although there were many chain stores in operation. Statistics showed that men's and boys' wear stores were more expensive to operate than women's or children's wear stores, which led to the financial structure of businesses in this category differing from other segments within the retail category. Inventory costs were relatively high in the men's and boy's segment as well. The short fashion cycle and resulting quick turnover of merchandise in women's apparel explains much of the disparity in inventory ratios. Men's fashions changed so infrequently that stores could carry inventory without worrying about significant changes in customer preferences.

Background and Development

Developed in the late 1700s, the menswear industry is the oldest of the domestic apparel industries. The industry began in the Northeast, where Samuel Slater built the first textile mill and where sailors off ships needed ready-to-wear clothing when they arrived in port. As the seamen could not afford custom-tailored clothing, tailors in port cities like New Bedford, Boston, and New York made standard size suits for them to wear as soon as they arrived on land. These early garments were made of the roughest cloth and were also frequently purchased by southern plantation owners for their workers.

The industry continued to develop as the demand for ready-to-wear clothing increased. The steady stream of immigrants who arrived in the United States with few clothes of their own, the Gold Rush in 1849, and the Civil War all stimulated the industry. When the Civil War ended, opportunities in the industry continued since people moving to the newly opened land in the West purchased ready-made clothing before they departed.

In response to the growing popularity of ready-to-wear men's clothing, dry goods stores featuring men's apparel sprang up throughout the country. These early experiments in retailing were the predecessors of the modern department store and shaped the direction of the modern retail industry. Many of the stores that were started during the early 1800s continued to do business into the twenty-first century. Brooks Brothers, founded in 1818, was the nation's oldest clothing store still in business.

One of the pioneers in men's retailing, John Wanamaker, introduced many of the merchandising strategies that are still used in the retailing industry. Wanamaker, together with his brother-in-law Nathaniel Brown, started a men's and boys' clothing store in 1861 in Philadelphia. Wanamaker, who had almost become a minister, proclaimed that he and his brother-in-law would follow the "Golden Rule of Business." Guarantees of satisfaction or money-back refunds were the hallmark of Wanamaker's businesses. So badly did Wanamaker want to get his message across that after making $24.67 on his first day of business, Wanamaker invested $24 in advertising. He was one of the first merchants to purchase a full-page newspaper advertisement. Wanamaker's, with a reputation for having fine clothing and accessories, became a shopping legend for all ages and both sexes. The end of an era came in 1995 and 1996 when most Wanamaker stores were bought out by the May Company and converted to Lord & Taylor stores. The Wanamaker's name had actually died some years earlier, although its former flagship store in Philadelphia still gives many shoppers a strong sense of the Wanamaker past.

Although many of the early men's and boys' clothing and accessory stores evolved into large department stores, the small independent shops continued to flourish throughout the nineteenth and twentieth centuries. These stores were typically conservative and specialized. Often, for example, a store would offer only tailored clothing or work clothes. For roughly 150 years, the men's and boys' wear industry retained the same selling practices.

A new segment of men's and boys' retailers developed in the 1960s: the casual and sportswear stores. Changes in lifestyle and increased demand for more variety in men's wear led to the decline of many tailored wear retailers. By the 1970s, leisurewear was the fastest-growing segment of men's and boys' retailing.

Dual Distribution.
Unlike other apparel industries, the men's and boys' clothing business has been connected with dual distribution since its inception. The term "dual distribution" refers to the practice of selling manufactured goods on both a wholesale and on a retail level.

As the country expanded, the manufacturers in the north found themselves far away from their customers. Although the factories were located in mill towns like Lowell, Massachusetts, and in big cities like New York, the population was growing rapidly in places like New Orleans. Initially, the apparel manufacturers were willing to sell their goods to clothing stores in the South. It did not take long, however, for clothing producers to realize that owning retail stores would be profitable. By the 1830s, manufacturers operated outlet stores in large southern ports such as New Orleans and Charleston. Most factories also continued to sell apparel to independent stores at the wholesale level.

Many well-known names in this industry, such as Hartmarx Corporation, Botany Industries, and Phillips Van Heusen, practiced dual distribution. In women's apparel, on the other hand, this policy was unusual. The industry watched the decline of tailored wear, especially suits. By the mid-1990s, the suit segment had been declining about 5 percent a year since 1989. The number of suits being manufactured reflected the trend: in 1990, 15.5 million men's and boy's suits were manufactured, down from 18.4 million in 1989. The suit industry was at its apex in 1979, when 25 million suits were made for the U.S. market.

In place of suits, the tailored separates product line was prospering. An inexpensive and flexible alternative to the traditional men's suit, tailored separates allowed customers to mix and match jackets and pants of different sizes and colors according to their needs. Separates were once considered a cheap way of selling clothes and were typically carried by bargain outlets or mass retailers like J.C. Penney. Heading into the mid-1990s, however, upscale retailers such as Brooks Brothers were carrying tailored separates as well. In fact, Brooks Brothers' separates line, called the Wardrobe Collection, represented more than 30 percent of its sales by the mid-1990s.

In addition to tailored separates, retailers in the men's and boys' clothing and apparel industry discovered that inexpensive product lines such as ties and hats were very lucrative. Although the recession prompted many men to forgo major purchases like suits, the lower-priced items were popular. In fact, ties enjoyed faddish popularity even among teenagers. In response to increased demand, retailers of men's and boys' casual wear, such as The Gap, added ties to their merchandise in the early 1990s. Tie sales continued to grow into the mid-1990s, as new styles and fabrics continued to catch the attention of consumers. Baseball hats were also popular during this period. Sportswear stores stocked hundreds of baseball hats featuring college and professional team logos.

Among the best-selling casual lines was licensed clothing. Merchandise featuring characters from popular television shows and movie releases sold extremely well in the early 1990s, as did licensed sports team apparel. The popularity of sports logos was no surprise to the men's and boys' apparel retailing business. The proliferation of new sports franchises during this period contributed to the fad.

In addition to changes in the types of merchandise sold, the men's and boys' apparel and accessories industry moved more toward using private labels than it had in the past. David Feld, CEO of industry-leader Today's Man, summarized the shift by noting that "years ago, retailers were representatives of manufacturers. Today, we see ourselves as the buying agent of the consumers."

Many of the large discount retailers discovered that private label merchandise was more profitable than brand-name clothing. Men's wear retailers who sold private label merchandise avoided having to mark up prices to allow for manufacturer and distributor profits. The savings was passed on to the consumer in the form of lower prices.

Historically, advertising in this industry was subdued compared with other segments of the apparel and accessory category. Even men's wear manufacturers did little national advertising, preferring instead to rely on time-honored reputation and brand recognition. During the 1970s and 1980s, some manufacturers provided retailers with newspaper and magazine advertisement and the necessary materials for radio and television commercials.

By the late 1980s, however, men's and boys' retailers, especially discount chains, were aggressively advertising. Houston-based The Men's Wearhouse, for example, began advertising in local newspapers during the 1970s, but by 1993, the company spent close to $14 million on promotions, the majority of which were television commercials. Companies that focused on small to mid-sized markets like Memphis, Tennessee, and Charlotte, North Carolina, valued advertising as a competitive tool. In these markets, advertising helped gain market share quickly. Discounters in these areas typically spent 5 to 6 percent of sales on advertising, though The Men's Wearhouse spent nearly 8 percent of 1992 sales on commercials.

Trade Groups.
Trade groups also figured prominently in the publicity efforts of menswear retailers. Major national publicity campaigns were often organized and sponsored by a number of trade groups.

Based in Washington, D.C., the Menswear Retailers of America (MRA) organization drew its membership from independent menswear stores located throughout the country. The organization was originally called the National Association of Retail Clothiers and Furnishers, whose principal purpose was to lobby on behalf of the menswear retail community. By the 1990s, the organization provided its members with a monthly newsletter and an annual business survey. The group, which changed its name again in 1993 to Apparel Retailers of America (ARA) then merged to become part of the National Retail Federation (NRF) in 1995, also organized national conventions and seminars for industry executives.

A more niche-oriented trade association, the Big and Tall Associates concentrated on a market that represented less than 5 percent of all the nation's men. These customers were over 5 feet 11 inches tall and/or had a chest measurement of more than 48 inches. Roughly 60 menswear manufacturers and 40 merchants were members of the association.

The importance of Father's Day for menswear merchants was underscored by the existence of the Father's Day Council, Inc. Although the council was a nonprofit organization supported by manufacturers and department stores, it provided much publicity for stores in the men's and boys' apparel accessory industry. Through various campaigns, The Father's Day Council promoted gift giving on Father's Day. One of the organization's oldest traditions was the National Fathers of the Year awards. Each year, the recipients were chosen from various professions.

In January 2000, the American Apparel Manufacturers Association (AAMA) voted to allow retailers into their organization. The reasons for this move were related to the shifting marketplace as retailers had begun sourcing directly from overseas contractors, online commerce promised increased sales, and similarities between retailers and manufacturers were growing. Retailers had been allowed to join AAMA in the past as associate members, but revisions to the bylaws in January 2000 afforded them full membership status. In August of that year, the American Apparel Manufacturers Association, the Fashion Association, and the Footwear Industry of America merged, becoming the American Apparel and Footwear Association (AAFA). In 2004, the association's members collectively had annual sales of more than $225 billion.

Despite energy increases that sent prices on all goods and services up 4.1 percent in the United States in 2007, retail prices on men's apparel dropped 2.4 percent for the year. Low-cost imports and stiff competition appear to have been the major factors. In particular, shirt and sweater prices shrank 7.1 percent, while pants and shorts increased 1.4 percent.

Aside from trying to lure men with lower prices, retail outlets have put an emphasis on drawing young men toward accessories. Young men aged 13 to 24 account for 29 percent of all accessories purchases, according to The NPD Group. The Guess company, for one, has tried to increase its portion of the market. Men's fashion accessories account for 10 percent of all sales at Guess retail stores, and the company is trying to boost that figure by integrating accessories into the men's section.

Another retailer in the men's apparel industry made a big move by moving away from its big association. Casual Male Retail Group (cMRG) replaced the Big & Tall signs in its 483 stores with Casual Male XL signs in the summer of 2006. CMRG had tested the XL name since the fall of 2005, and the change produced successful sales. CMRG said focus groups of consumers indicated the term "XL" made them feel "more like an athlete."

Current Conditions

According to market research firm, NPD Group, men's clothing sales fell 3.7 percent between April 2009 and April 2010. Despite sluggish sales throughout the steep economic downturn, men's and boy's clothing and accessory stores were trying to spur resurgence. While some stores moved to include an online presence to their mix, while others like Men's Wearhouse began running extensive ads in an attempt to lure men back into their stores. Still others were purchasing air time such as Levi Strauss & Co.'s "Wear no Pants" commercial that aired during the Super Bowl hoping to capitalize on its Dockers brand, and the Haggar brand created "edgy commercials" that aired on Fox Sports. Other companies such as Joseph A. Bank Clothiers announced the opening of some 40 stores in 2010.

Men's clothing retailers efforts and spending paid off throughout the first-quarter of 2008. J.C. Penney Co. reported men's clothing experienced the largest profits during that time, as did Joseph A. Bank Clothiers. Paul Buxbaum, CEO of Haggar reported "double digit" sales growth, and Men's Wearhouse was experiencing stronger sales as well. While there seemed to be some industry movement, one industry watcher, Marshal Cohen, NPD's chief industry analyst suggested men's overall clothing sales would begin to post positive results by late fall.

Industry Leaders

Although the men's and boys' clothing and accessory industry was fragmented, a few of the companies in the industry were growing faster than the competition. These businesses were able to capitalize on the changes in consumer preferences and spending habits that were rapidly changing this traditionally conservative industry.

Retail Giants.
Sears, Roebuck, and Co., which merged with Kmart in 2005 to create Sears Holdings as the third-largest retailer in the country, after Wal-Mart and Home Depot, added substantially to its clothing lineup with the 2003 purchase of Lands End for $1.9 billion. Lands End operates 200 in-store shops at Sears locations. Sears posted more than $30 billion in sales in 2006. J.C. Penney, another department store giant, reported sales of $19.9 billion in 2007. Target, with 2007 sales of $59.5 billion, began taking its apparel lines seriously, accentuating the trendy with its offerings from Mossimo, Cherokee, Stephen Sprouse, and Ecko's Phys. Sci.

Sears Holdings Corporation reported revenues of $50.7 billion in 2008, declining to $44 billion in 2010. J.C. Penney Corporation, Inc. reported revenues of $17.5 billion in 2010, while Target posted revenues of $65.3 billion in 2010.

Traditional Retailers.
Another industry leader involved in retail and manufacturing, and the oldest men's retail store in America, is Brooks Brothers. This company was started in 1818 by Henry Sands. Brooks Brothers was the company that invented the button-down shirt and the argyle sock. The company outfitted notable Americans like Abraham Lincoln and Franklin D. Roosevelt and continued as the last bastion of conservatism in the men's clothing industry.

According to Brooks Brothers' executives, their company has been successful over the years because its name represents American style. Brooks Brothers' clothes have changed very little over time. In fact, the button-down shirt, invented by Brooks Brothers in the nineteenth century, remained practically unchanged as of 2008. Brooks Brothers offered the stable conservative type of clothing that appealed to U.S. presidents as well as young men out of college who wanted to dress appropriately for a first job interview.

Although the Brooks Brothers name has been associated with conservative clothing, the company has also demonstrated flexibility. Recognizing that men were buying fewer suits and were dressing more casually at work, Brooks Brothers introduced Friday Wear. The line was more relaxed than a suit, making it appropriate for casual Fridays at the office. Brooks Brothers also introduced the "Wardrobe Collection," a line of tailored separates. These and other innovations helped Brooks Brothers prosper despite that fact that many of their products have not changed since they were first introduced in the nineteenth century.

The company has 180 retail and outlet stores throughout the United States. It also has more than 100 stores combined in about a dozen other countries. Owned from 1988 to 2001 by the British firm Marks & Spencer, the chain was sold in 2001 to Retail Brand Alliance for $225 million.

Joseph A. Bank Clothiers, Inc., founded in 1905, specializes in suits and other business attire, although it too offers casual wear. It also sells golf wear under the David Leadbetter label. The company operates more than 400 stores in 40 states and had sales in 2007 of $546.4 million. The company's revenues continued to climb before reaching $770.3 million in 2010.

Discount Leaders.
An important departure from tradition in the men's wear businesses was the willingness of consumers to purchase tailored wear at bargain outlets. Two of the leaders in this fast growing segment were S&K Famous Brands and The Men's Wearhouse. Both of these stores used similar strategies in pricing, promotion, and location, and represented a stark contrast to traditional men's wear retailers like Brooks Brothers.

S&K Famous Brands, Inc. was started in 1967 by I. J. Siegel and Abe Kaminsky as a wholesale business. The founders started their operation after retirement: they would spend their days buying one retailer's overstock and selling it to another retailer. Eventually, the volume of merchandise exceeded the space available in the car the two men used as their base of operations. Siegel and Kaminsky rented space in a former thrift store and eventually attracted retail customers.

Siegel's son, Stuart, joined the business in the early 1970s and initiated its expansion. By 1973, S&K Famous Brands operated five stores; when the company went public in 1983, it had grown to 13 stores with sales of $10 million. The initial public offering generated $2.6 million, most of which was used for expansion.

Despite rapid growth, S&K Famous Brands maintained tight control of its finances. Its expansion was gradual and internally financed. Owing to this conservative approach, the company had little long-term debt as it entered the mid-1990s. By 2007 S&K had approximately 230 stores with annual sales of roughly $183 million. The company's revenues fell to $156.9 million in 2010.

An off-price retailer, The Men's Wearhouse had humble beginnings similar to S&K Famous Brands. The first Men's Wearhouse store was started in 1972 with a $7,000 investment by George Zimmer, an apparel salesman. Zimmer carried brand-name men's suits and sold them well below department store prices. In 1992, after 20 years of operation, the company went public.

The Men's Wearhouse battled aggressively with department stores. The company invested heavily in television advertising featuring George Zimmer attacking his competitors by name. Zimmer's ads were scathing enough to provoke Nordstrom Inc., a Seattle-based retail chain, to file a suit against The Men's Wearhouse for false and misleading advertising. Despite this challenge, by 2007 the company had grown to 1,200 stores in North America. The company posted sales of $1.9 billion in 2007. After reaching $2.1 billion in 2008, the company fell back to $1.9 billion in 2010 with 15,900 employees.

Trend Leaders
What works for the men is not always for the boys. Two of the leaders in urban, trendy clothing for the tweens, teens, and twenty-somethings were Pacific Sunwear (PacSun) of California and The Buckle. With apparel, shoes, and accessories from Billabong, JNCO, Vans, and other trendy companies, PacSun had 1,100 stores in all 50 states. The company posted 2007 sales of $1.4 billion. The Buckle, Inc., also targeted the younger crowd, with brands such as Polo, Dr. Martens, Fossil, and Silver. In 2007 the company had $530.1 million in revenue from its 350 mall-based stores.

Pacific Sunwear's store count had declined to 885 in 2010, as did its sales to $1 billion following a reported $1.2 billion in 2009. Through its more than 400 mall-based stores, The Buckle, Inc. reported revenues of $898.2 million in 2010 following the reported $792 million in 2009.


The U.S. Census Bureau reported that the total number of individuals employed at the almost 8,700 men's clothing stores in 2005 was about 64,600. Another 33,500 worked at roughly 7,000 clothing accessories stores. In the industry, more than three-quarters of all jobs were sales related. The industry reported a workforce of 58,127 workers during 2010 with the majority working in California and New York.

Research and Technology

A trend by the mid-2000s was no surprise--the use of computers Optimization software programs took much of the guesswork out of retailing, predicting trends, suggesting sales, and aiding merchandising efforts. Using technology to enhance retail businesses is critical to the success of men's and boys' apparel and accessory retailers. The intensely competitive market coupled with shifting consumer preferences made flexibility and low price important competitive weapons. The ability to enhance reaction time and to streamline operations using automation helped retailers compete in this environment.

© COPYRIGHT 2018 The Gale Group, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. For permission to reuse this article, contact the Copyright Clearance Center.

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