Frugal folk who are looking for formalwear might be faced with going to Men's Wearhouse or Joseph A. Bank, two clothiers once known for "buy one, get three free" deals and other deep discounts.

Regardless of final choice, those people would be getting said suit from the same source: Tailored Brands ($TLRD). It owns Men's Wearhouse, Jos. A. Bank, which it bought out for $1.8 billion in 2014, as well as K&G Fashion Superstore.

According to data taken directly from its store location websites, the company claims 1,375 retail locations between these three brands after closing several hundred stores in 2017.

While Jos. A. Bank and Men's Warehouse slightly differ on the exact suits, shirts, and other apparel they offer, they both sell formalwear. K&G does have a women's section as well, but it too offers plenty of formalwear.

And herein lies the issue: what we call the "Mattress Firm Problem" for retailers who are facing, or may face, the retail apocalypse.

The existence of two stores that sell the same products within one mile of each other is an indicator for oversaturation in an area. While some places, such as New York and Los Angeles, need stores in close proximity due to traffic and interest, other areas may have multiple stores when, in reality, it is too much supply for the current demand.

According to proximity data, 485 out of 1,375 Tailored Brands stores — or more than a third of its current portfolio — has another store within a one-mile radius. While the usual suspects of New York, Los Angeles, and Chicago are in the list and are understandable, other places, such as Cleveland-suburb Mayfield Heights, Ohio and several Florida communities like Coral Gables, have stores that are within the same mall or block of each other.

This is all while young competitors in the space, such as Suitsupply ($PRIVATE:SUITSUPPLY) are cutting into the multibillion-dollar menswear market with less of a retail presence and more of a global footprint through online orders.

With only 107 physical locations, less of half of which are in the United States, Suitsupply makes its profit with online orders and controlling every aspect of its products from creation to sale.

In its last quarterly report, Tailored Brands saw it stock tank when it reported declining overall traffic and same-store sales — meaning less people are going to stores and becoming regulars — at Men's Wearhouse and Jos. A Bank respectively. Now, as men's fashion continues to evolve and sleeker startups are invading the space, Tailored Brands may have a hard time bringing in customers to the Wearhouse and Jos. A. Bank, potentially in those areas where it has stores in close proximity.

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