Men's Wearhouse's Competitive Advantage: High-Class Customer Service

Nikhil Raheja profile picture
Nikhil Raheja

The Men's Wearhouse, Inc. (MW) is a highly successful business. The company has a loyal customer base and offers quality products and services to maintain that loyalty. The company has several competitive advantages such as fashionable clothes, lower prices, and high-class customer service. The company has done a good job of preserving its competitive advantages over the years. In addition, the company offers good financials, including a relatively cheap stock.

Business Model

Men's Wearhouse is one of the largest specialty retailers of men's suits and the largest provider of tuxedo rentals in the United States and Canada. The stores offer a broad selection of exclusive and non-exclusive men's business attire, including items such as basic suits, navy blazers and tuxedos. The company also earns a large amount of revenue from its tuxedo rental business. Apart from its flagship Men's Wearhouse stores, the company owns 'Moores', one of Canada's leading specialty retailers, and 'K&G stores' that cater to the price sensitive customers.

The company's key competitive advantage is in its ability to provide a broad selection of merchandise brands along with superior customer service. As regards customer service, the company adopts a "do whatever it takes" attitude. The sales people are encouraged to promote customer satisfaction and loyalty and provide an overall superior experience. In addition, Men's Wearhouse offers great depth in its merchandise by providing an assortment of styles and a broad selection of fabrics and colors. Such breadth of products and high customer service allows Men's Wearhouse to set a high standard and inspire loyalty amongst customers.

The company's growth plans include opening more retail segment stores in new and existing markets. For instance, the company believes it can increase the number of traditional Men's Wearhouse stores in the U.S., from the current 638 to 750 in a couple of years. The company

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Nikhil Raheja profile picture
Registered Investment Advisor

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