After firing, customers turn on Men's Wearhouse
Fans vent about the way founder George Zimmer was treated, and marketing experts worry that the company is throwing away business by discarding its spokesman.
A tone-deaf post on the company's Facebook (FB) page on Tuesday that featured a shot of a Calvin Klein Taupe Plaid sportcoat and no mention of the dismissal of the man who led the company since founding it in 1973 drew hundreds of comments blasting the retailer.
"Just fired the only thing your brand had going for it. Never using again," Facebook user Scott McDonald posted. "Think about it," Brad Gates of Salt Lake City wrote. "How loyal are they going to be to their customers if they can so nonchalantly stab the very founder of their company in the back?"
Repeatedly, customers vowed never to shop at the specialty retailer again after the company outright dismissed the man whose soothing timbre once told them, "You're going to like the way you look, I guarantee it." The company still hasn't said why Zimmer was fired, but it continues to use his image and his trademark quote -- in enormous sans serif type, no less -- on its website.
Zimmer is reportedly furious. "Instead of fostering the kind of dialogue in the boardroom that has in part contributed to our success, the board has inappropriately chosen to silence my concerns through termination as an executive officer," CNBC quotes Zimmer as saying.
Bloomberg notes that Zimmer and Douglas Ewert, his handpicked chief executive officer, have been at odds over the potential sale of the company's K&G apparel chain and a recent $30 million stock buyback. By throwing Zimmer out, however, marketing experts say Men's Wearhouse is throwing out entire demographics.
"There is a case to be made that an icon never lasts forever and he was definitely getting long in the tooth," Laura Ries, the president of marketing strategy firm Ries & Ries, told Bloomberg. "But this is abrupt. . . . Just because you change the messaging doesn't mean kids will think you're cool."
The millennials Men's Wearhouse appears to be fishing for, however, aren't the buyers who boosted sales 5% last quarter. The chain's loyal, greying customer base that Zimmer played such an active role in recruiting is becoming more of a worry than a commodity as the company's growth potential drove its share price up 19% last year -- ahead of the S&P 500's ($INX) 14% gain over the same period. With stakes that high, Men's Wearhouse is gambling that a slightly higher voice and some darker whiskers will bring in the young, flush shoppers its covets.
"The question is if the future of Men's Wearhouse is tied to the millennial shopper," Richard Jaffe, an analyst at Stifel Financial, told Bloomberg. "Does George resonate with the children of the baby boom as he did with my dad? The answer is we don’t know."
Terrible how you treated George. Not getting my business anymore, I guarantee it!
I think it is shameful that you can employ your imagination, vision and creativity to start a company from nothing, work long hours to nurture and grow it, lead it to national prominence and profitability only to be unceremoniously cast out into the cold by a group of people who think they are smarter than you.
If there is a lesson to be learned, it is to not ever give up control of your company to anyone or any group.
I wish Mr. Zimmer nothing but the best in his future endeavors and I hope to see the names of the people who ousted him in the Public Records of the Bankruptcy Court.
Will not shop there anymore. They are on my don’t buy from list and will tell others do not shop there and why. Not nice.
I'm sure he won't be in an unemployment line anytime soon. If I was worth as much as George Zimmer, I'd quickly start a new company and watch it boom. Afterall, he knows the ropes like nobody else.
Bought a tux and several suits, sports coats, slacks and shirts over the years. Quality is always OK for the price. Agree that Jos A Bank has better quality and price. Agree with all that say this reflects poorly on how they view loyalty, whether that is a customer or the founder.
Loyalty these days ends past the register. They will be BK in under 3 years...I guarantee it.
Biggest, wrong move this company could ever do. They lost me and my friends and I can bet thousands upon thousands of young men too. How many men today can say or remember when Dad or even Mom took them for their first suit or set of dress clothes.
With the Dad style of voice that Zimmer put forth young men and older ones too felt very comfortable in hearing him say that never changing ad verbiage .
If this is the direction the boards of larger companies are heading then I can only warn "Jack" to be on the lookout so he doesn't lose his big head too.
I'm pretty sure that millennials don't wear suits. If they dress up it is a golf shirt with the collar up!
Nobody knows the shoping habits 20-somethings better than a room full of crusty old businessmen.
I suppose they will have A&F style ads with shirtless guys wearing only a sports jacket, laying on a rock next to the ocean.
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[BRIEFING.COM] The stock market finished an upbeat week on a mixed note. The S&P 500 added just over a point, holding its weekly gain at 1.0% while the Nasdaq lost 0.4%.
The major averages began the day on an upbeat note, but relinquished their opening gains during the first 90 minutes of action. The early sentiment was boosted by a better-than-expected nonfarm payrolls report for February (175K versus Briefing.com consensus 163K), but a closer look into the report suggested that ... More
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The solid report comes a month after the retailer closed all of its Canadian operations.
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