Men's Wearhouse: George Zimmer

How I Built This with Guy Raz

Guy Raz | Wondery

Business

4.8 • 31.1K Ratings

🗓️ 15 April 2019

⏱️ 64 minutes

🔗️ Recording | iTunes | RSS

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Summary

In 1970, George Zimmer was a college graduate with no real job prospects and little direction. That's when his father, an executive at a boy's clothing company, asked him to go on an important business trip to Asia. It was that trip that propelled him into the world of men's apparel. In 1973, the first Men's Wearhouse opened in Houston with little fanfare. But by the mid-80s, George Zimmer managed to carve out a distinct niche in the market – a place where men could buy a good quality suit, at "everyday low prices," along with all the shirts, ties, socks, and shoes they need. With George as the face of the brand, Men's Wearhouse became a multi-billion dollar empire with hundreds of stores across the U.S. But then, in 2013, a bitter battle forced him to give it all up. PLUS in our postscript "How You Built That," we check back with two brothers from Guinea, West Africa who founded a company that makes Ginjan, a spicy-sweet juice from their childhood that mixes pineapple and ginger. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Transcript

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0:00.0	Hey, Prime members, you can listen to how I built this early and ad-free on Amazon Music.
0:07.0	Download the app today.
0:09.0	New years is here, and with it brings the possibility of change.
0:13.0	As one behavioral scientist put it, first starts are really powerful.
0:17.0	So as you head into 2023, LifeKit is a great resource to help you plan your life and tackle changes, both big and small.
0:24.0	Listen to the LifeKit podcast from NPR.
0:27.0	So really quick, before we start the show.
0:30.0	I knew that something wasn't right, and the next day they said that by unanimous consent they decided to replace me and George, we've put your furniture in storage.
0:44.0	And I remember thinking, my furniture and my knickknacks, 40 years of stuff that I had accumulated in 50 cartons were put in storage.
0:56.0	And in the moment it felt like, well damn, if all these people who are my friends don't want me as their leader anymore, then why do I want to be their leader?
1:10.0	From NPR, it's how I built this, a show of innovators, entrepreneurs, idealists, and the stories behind the movements they built.
1:25.0	I'm Guy Ross, and I'm today's show, How George Zimmer turned discount suits into a multi-billion dollar empire called Men's Warehouse, and the bitter battle that forced him to give it up.
1:43.0	So in retail fashion, there are three main categories of customers.
1:48.0	And obviously, this is a slight oversimplification, but it goes a little like this.
1:53.0	There are products for the top end of the market, so think like a Birken bag by AirMaz.
1:59.0	It costs around $20,000, and AirMaz knows it's only going to sell a small number of them a year.
2:06.0	You sell 500 Birken bags a year, that's $10 million in revenue.
2:11.0	And then there's the lower end, so old Navy, for example.
2:14.0	A huge number of consumers can afford to buy their clothes, and so they sell a lot of stuff, t-shirts, jeans, button-downs for like 20 or 30 bucks a piece.
2:24.0	And there's a clear strategy with each approach, but where fashion brands can really hit the big time is in the middle range.
2:32.0	So imagine a Venn diagram of a person who might pop into J. Crew or made well now and again, but also pick a few things up at Target.
2:41.0	That is the customer, most fashion brands are hoping to attract the value shopper who's also discerning.
	...

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