Macy's and Tailored Brands to End Tux Rental Partnership
Macy's announced this week that it will be ending its tuxedo rental partnership with Tailored Brands in July. In March, Tailored Brands reported a $14 million charge after expecting startup losses of $10 million. The increase was due to missing the bulk of wedding season, said Tailored Brands Chief Executive Douglas Ewert on the earnings call. Unfortunately, the partnership didn't generate the revenue that both companies had envisioned, Ewert said in a statement.
Total Retail's Take: Macy's has been making moves to try and downsize its business, and that now includes cutting its losses from the partnership with Tailored Brands. However, it's surprising that the two companies would make this announcement now, in the middle of wedding season, a traditionally busy time for tuxedo rentals. With the service available until July, it seems they're going to see how the spring wedding season performs.