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| Men's Wearhouse wants to purchase Jos. A. Bank |
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| But their $1.5 billion offer was rejected |
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| while a carjacked Range Rover of Dustin Friedland is recovered in Newark |
Murder and men's apparel sales are very different situations that bisect at the point where ego meets practicality.
Last Sunday, December 15, 30-year old Dustin Friedland was approached by two gunmen in the parking lot of the upscale Short Hills Mall in New Jersey who then opened fire, killing Friedland in order to carjack his vehicle. It was later learned that Friedland's car, a Range Rover was a model the killers were specifically targeting.
Several high-profile abductions and murders from car-jackings over the past few years in mall parking lots of upscale neighborhoods
have heightened sensitivities of shoppers and made them more aware of their surroundings in order to stay safe. People who used to self-park in any available spot in the parking lot now wait to pay and valet their cars. Mall owners have increased police and security presence around their properties. And luxury car buyers are re-thinking the value of the 'prestige-factor' which is the cachet achieved when paying the difference between a luxury vehicle and a moderately priced vehicle. In the mind of wealthy mall-goers everywhere, "If thieves are willing to kill for my car, then I'll get a cheaper alternative to stay safe."
The loss of relevance to the 'prestige factor' is also seen in fashion merchandise. Although premium men's apparel makers still sell suits for upwards of $2,500 each, retailers including Jos. A Bank promote perpetual discounts and sales with similarly styled products at a fraction of the price compared with the upscale conservative styling of premium brands. While the market for luxury suitings is limited, Jos. A Bank reported total sales of $247.5 million for the third quarter 2013 up more than six percent from the year-ago period. The retailer this week rejected a $1.5 billion acquisition offer from Men's Wearhouse with the comment that the offer did not fully recognize the value of the company.
The downward pressure on luxury is borne out by statistical research. With continued turmoil in employment markets and uncertainty in personal expenses including healthcare, a July 2013 CNN/ORC International survey
concluded that two-thirds of respondents say they currently rate the economy as poor and that 44% of Americans say their financial situation is worse today than it was a year ago compared with 36% who say their position has improved over the same timeframe.
With the accumulation of premium and luxury shoppers around the middle ground, affordable luxury fashion brands including Michael Kors and Kate Spade are taking over real estate that once featured only high-end luxury tenants. The increasing market share of these 'bridge' labels are pushing out higher-priced tenants on Rodeo Drive just as they already have on Fifth Avenue in Manhattan.
Everyone should be able to buy everything they want to own without any limitation except budget.
Now this basic rule of capitalism is being challenged by the practical realities of modern living.
