Valentines day 2014 brought another couple to the marketplace. Jos A. Bank announced that they will buy the parent company of Eddie Bauer. Jos A. Bank will end up with the better end of this deal as they will be bringing a household name to their portfolio. Eddie Bauer is known as a prestigious brand. From clothing to baby strollers to vehicles it commands more money just with its name on it. Jos A. Bank will get loyal customers of the Eddie Bauer brand. Which they easily can turn into Jos A. Bank customers with the right marketing.
I think that this move could benefits the Banks corporation if they capitalize on the fact that Eddie Bauer does have a better brand name and recognition than the Banks company. I think that when people think of Eddie Bauer they think of luxury clothing that is good quality. It's a good movie.
I believe the market share for Eddie Bauer has decreased over the last decade or so, but I do believe the move will end up benefiting Jos A. Bank. Jos A. Bank has been seeking ways to expand via buying other companies and I feel this will allow them to offer casual ware, which will be a good thing in the long run.
Why would it benefit to buy Eddie Bauer? Has anyone really asked this question? What benefit will this incurr whatsoever? It's obviously none. Why does anyone think differently? Wishful thinking is the answer to that question. Not everything needs to be bought, and this is a clear example of this being the case.
Jos A. Bank has a reputation as a retailer for business and formal clothing for men, whereas Eddie Bauer is casual clothing. Men shop at Jos A. Bank precisely because they specialize in formal business attire, not khakis and polo shirts. There are plenty of retailers who sell a wide variety of men's clothing, so I think the purchase of Eddie Bauer will dilute the Jos A. Bank label too much and make them less attractive when compared to their competitors.