Brooks Brothers has been in business for 202 years. They are the oldest apparel brand in the US. They filed for bankruptcy today. They join a growing list of struggling retailers who have declared bankruptcy during this pandemic. Clearly, the pandemic accelerated the demise these companies.
The retail industry has been in a state of change since the dawn of this century. Amazon has driven the convenience, economy, and ease of online shopping at the expense of traditional retailers. These traditional retailers, referred to often as brick and mortar stores, have struggled to keep up with Amazon for two main reasons.
First, Amazon’s website is very easy to navigate for customers in terms
of both finding what they want. It is
even easier to place orders with them. Thus,
one can shop at any hour of the day from any place one is connected to the
internet. It is super easy and
convenient. The websites of most other
retailers, based solely on my experience, are more cumbersome to use in terms
of searching, ordering, and order management.
I never bought anything online from Brooks Brothers though I often
browse their website.
Second, and maybe more importantly, Amazon’s warehouses and distribution system is expertly designed to handle and fill online orders. The warehouses and distribution systems of traditional retailers are designed to fulfill stores where most of their sales occur. This is a huge edge and provides Amazon with advantages in terms of cost and time. I am not sure how Brooks Brothers is positioned in this regards. Given their bankruptcy filing, it is logical to surmise that their online sales are still very low.
I was sorry to hear Brooks Brothers had filed for bankruptcy. Frankly, I was taken by surprise. I revered the brand and always assumed that Brooks Brothers would be the gold standard of men’s clothiers for executives. Therefore, I assumed they would be around for another 202 years offering classic fashions of high quality to discerning clientele.
Brooks Brothers dressed American businessmen and leaders in suits, white shirts, and repp ties for many years. As the articles about the bankruptcy noted, Brooks Brothers survived the change to business casual but not the Covid-19 pandemic when business attire became extremely casual.
I have friends that shopped Brooks Brothers exclusively. I have aspired to do the same for forty years but have never actually become that loyal customer I thought I should be. I have a dozen button down and polo shirts, a half-dozen ties, an overcoat and raincoat. I have no suits, slacks, or sport coats. Their prices are simply exorbitant to me. I can buy three or four sports coats at Jos A. Banks or other clothiers for the price of one Brooks Brothers one.
Brooks Brothers was known for making their clothes in the US. Even today, some small percentage of their suits, ties, and shirts are still made here. They were American owned until 1988.
Brooks Brothers was acquired by the British retail chain Marks and Spencer Group PLC in 1988. It was sold in 2001 to Retail Brand Alliance Inc., which was controlled by Mr. Del Vecchio, whose father founded Luxottica Group SpA, the Italian eyeglass maker. It changed its name to Brooks Brothers Group Inc. in 2011. ~ WSJ
Mr. Del Vecchio did focus on the classic looks roots of the brand. He insisted on quality designs and fabrics. Combining this with domestic and Italian production accounted for the exorbitant prices.
They are currently seeking a buyer for the company. Only time will tell if the brand will retain its classic heritage and quality or if the new owners make it more mainstream and less exclusive. A few of the suitors mentioned in the article are definitely known for doing the latter.
Meanwhile, Amazon continues to gain share in the retail clothing business. They have their own house brand, AmazonBasics, and sell other brands. Their prices are amazing and I have no doubt they will continue to grow in this sector. Perhaps, they will consider purchasing and “Amazoning” Brooks Brothers.
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