The news: Stores are central to Tailored Brands’ flywheel, which is why the parent company of Men’s Wearhouse, Jos. A. Bank, K&G, and Moores plans to expand its roughly 1,000-store footprint by 50% over the next decade. It will add locations across 100 markets—including roughly 250 Men’s Wearhouse stores, 200 Jos. A. Bank stores, and 50 K&G locations.

The retailer’s store base is highly profitable. In fiscal 2025, all stores were profitable on a four-wall basis, with 84% generating margins above 30% and 93% exceeding 25%.

Strong margins, simple store formats, and an efficient staffing model underpin that profitability. Tailored Brands posted a 48.2% gross margin in fiscal 2025, driven by high-margin rental and retail sales.

The retailer’s rental business is a key differentiator. In fiscal 2025, rentals generated roughly 6 million store visits, accounted for about 15% of net sales, and contributed around 30% of adjusted EBITDA. The economics are especially attractive because rental garments typically recover their initial cost after the first rental. They also create a lucrative cross-sell opportunity, as customers who engage across both rental and retail spend about 1.9 times more than rental-only customers.

The context: Prior to filing for Chapter 11 bankruptcy in August 2020—when pandemic lockdowns crushed demand for suits and formalwear—the retailer closed about 400 stores. Although it emerged from bankruptcy later that year, it is only now preparing to return to the public markets.

The retailer says it is applying lessons from that downsizing to rebuild its fleet more selectively. The strategy has shifted from closing weaker locations to reopening in high-potential markets with a more data-driven approach to site selection, updated store formats, and stricter return thresholds.

New stores are also being used to modernize the customer experience. Men’s Wearhouse locations are being redesigned with more flexible layouts, clearer product categories, and integrated retail and rental solutions. Jos. A. Bank stores are being refreshed with layouts focused on fit, lifestyle, and easier navigation.

The company is also tailoring stores to local markets. In Salt Lake City, for example, localized assortments, updated layouts, and targeted marketing helped drive net sales about 9% higher than a comparable group of stores.

Implications for retailers: Tailored Brands shows the enduring power of physical stores, particularly in high-touch categories like tailored apparel. Stores serve as three-dimensional billboards that boost brand visibility while also providing a place for customers to get hands-on service and guidance. In Tailored Brands’ case, that includes personalized recommendations, precise fittings, and access to roughly 1,000 on-site tailors.

There’s a reason we expect 56.1% of menswear sales to occur in physical stores this year. If brands can deliver a high-quality, service-driven in-store experience, a large share of those sales is likely to remain offline.