The Company is a specialty retailer of big & tall men's apparel with retail operations throughout the United States, Canada and London, England.
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Nothing Casual about Casual Male!!!!
Casual Male Retail Group is a specialty retailer of big and tall men's apparel with presence in US, Canada and UK. The company's operations consists of the Casual Male and Rochester businesses. Casual Male stores offer a selection of sportswear, dress clothing and footwear for the big and tall male customer at moderate prices whereas the Rochester business focuses on customers shopping at the high-end price point.
The company has about 8% market share in the $5.5 billion big and tall apparel market. Recently, they have come out with a rebranding initiative to expand their market share by introducing Casual Male XL to target the underpenetrated segment that constitutes 65% of their existing market. Rebranding has primarily contributed to the top line with almost 8% rise in the number of units sold.
Also, acquisition of Jared M. that caters primarily to the professional athletes will increase the Rochester business and start driving revenues by spring 2007. To expand their offerings the company has acquired ‘Super Size world’ that carries over 250 products catered to the needs of large people. Private label business is doing well with strong performance from ‘626 Blue Lifestyle’ and ‘Platinum Series’. They are also planning to re-launch their lifestyle brand ‘Synergy’ by next spring after receiving solid response in this year.
Launching of B and T factory in the future with price points about 25% less would help the company to target the lower income group. Company’s plan to increase the proportion of private label merchandise and will source almost 40% of this merchandise offerings to improve their gross margins in the coming year. Looking at the numerous initiatives, consistent positive same-store sales, this company should OUTPERFORM.
Casual Male Retail Group (CMRG) is undoubtedly a triumphant contender in the ‘Big and Tall’ men’s niche market. The once-ailing retailer of men’s apparel has learned many lessons from its past harsh experiences and extensive market research expenditures. The company’s rebranding initiative included changing ‘Big and Tall’ to ‘Casual XL’. This worked wonders for CMRG as it helped not only to win new customers, but also to regain many of its older customers. The company’s fiscal 2006 performance was good, as revenues grew by 10.9 percent. This was due, in large part, to improved product offerings that led to growth across all sales channels. Same-store sales also continued their trend with 7.5% growth, despite unsupportive weather conditions.Demographic behavior has continually been a CMRG focus, as evidenced by the company’s varied product offerings. Lately, the company has started targeting smaller-waisted individuals who comprise a major portion of its niche market. CMRG’s management, after reviewing their web-based sales’ performance, is also shifting the company’s marketing focus to the Internet. The contention is that big and tall individuals are apt to use the Internet.Buoyed by private-label brands’ past successes, CMRG has plans to increase its fiscal 2007 product offerings, which the company anticipates will positively impact its gross margins. Additionally, the retailer has strengthened its balance sheet by converting its long-term debt into equity. CMRG is, therefore, doing some ‘big’ and ‘tall’ things to enhance shareholder value.