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Wednesday, May 19, 2004

Skeffington's not just for tuxes anymore



By Randy Tucker
The Cincinnati Enquirer

[photo]
Skeffington's employee Matt Kellum matches separates from the retailer's new line of casual wear. The chain hopes its less-formal offerings will help it compete with the likes of Men's Wearhouse.
The Cincinnati Enquirer/MELISSA HENTERLY
A local tuxedo chain is making radical alterations to its stodgy image to draw customers in the market for a business suit as well as bowtie and tails.

The move is part of a national trend in the formalwear industry, spurred by the encroachment of national retailer Men's Wearhouse. Houston-based Men's Wearhouse and other full-line men's stores have begun renting tuxes and grabbing market share from traditional tuxedo sales-and-rental retailers.

Men's Wearhouse, for example, entered the estimated $1.4 billion tux business in 2000 and expects to rent more than 1 million tuxes this year, putting pressure on retailers such as Norwood-based Skeffington's Formalwear to find new sources of revenue.

Skeffington's has responded by rolling out a complete ensemble of suits, shirts, jeans and other less-formal menswear, which now account for about 50 percent of total sales at several Skeffington's locations, said Stephanie Pasley, retail manager at the company's flagship store on Montgomery Road in Kenwood.

"We figure that we've got the customer in our store already, so why not try to service them in every possible way in terms of outfitting them?" Pasley said. "The benefits for us are obvious - more revenue."

Pasley said Skeffington's, with 16 stores in Greater Cincinnati, is the first to embrace the new approach locally.

And the company has done so wholeheartedly, even referring to itself as Skeffington's Menswear in a recently launched print ad campaign.

The company also has incorporated department store features such as fitting rooms with flat-screen TVs and play areas for children at its Kenwood location to create the feel of a traditional men's store.

"We moved here from Kenwood Towne Centre in March to accommodate our expanded offerings and amenities," Pasley said. "We've increased our floor space from 800 square feet to about 5,000 square feet, and our customers love it."

But Skeffington's hasn't lost sight of its bread-and-butter business - tuxedo rentals.

In fact, the company pairs an aggressive low-price strategy on standard menswear with its emphasis on formalwear to prevent one department from cannibalizing from another.

For example, Skeffington's sells a line of Andrew Fezza suits in five colors that come with a choice of shirt and tie - a package that would normally retail for about $500, Pasley said.

Skeffington's rental customers can buy the package for $249.

"We sold about 26 suits here (Kenwood) in the first month we began offering the package, and sales are still strong," Pasley said. "But our rental has picked up, too."

Nationwide, however, tuxedo rentals at formalwear shops have declined in recent years, providing further evidence of fragmentation and increased competition in the industry.

According to the International Formalwear Association, which conducts a biannual survey of the men's formalwear industry, tuxedo rentals have fallen from 67 percent of total revenue at formalwear shops in 1996 to 49 percent in 2001 - the last year in which the study was conducted.

At the same time, the sale and rental of men's suits and accessories - categorized as career apparel - climbed from 25 percent of total sales in 1996 to 67 percent in 2001.

Karen Hurley, managing director of the Chicago-based formalwear association, said that in addition to increased competition, much of the growth in menswear offerings at rental shops can be attributed to the "casualization of the consumer."

"Ten years ago, a man in the business world would have several suits in his closet," Hurley said. "But with the acceptance of casual dress in the workplace, they might not have any. Now they're buying and renting suits for special occasions, and our members have seen opportunities to dress them in suits."

E-mail rtucker@enquirer.com




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