He no longer uses that slogan for his new businesses. His zTailors startup has struggled since it was unveiled in May.
Generation Tux is designed to be a more millennial- and Generation Z-friendly version of the old-school process of renting a tuxedo: The selection is done entirely online; there’s free shipping both ways; and tailoring is to be done at the customer’s home by zTailor, another Zimmer startup. “With our central location, world-class UPS Worldport headquarters and our thriving Logistics and e-Commerce sector, Louisville has the environment that will help George Zimmer’s new company succeed”, said Mayor Fischer.
Zimmer launched Generation Tux that allows men to order suits and tuxedos online, transforming the tuxedo and suit rental market.
“They’re approaching this as though I’m public enemy number one”, Zimmer said in an interview.
This influx of capital has gone toward establishing infrastructure for the business, including a distribution center in Louisville, Kentucky, that houses 30,000 suits and a dry-cleaning facility to ensure a quick turnaround.
Also in the warehouse: an army of tailors ready to make adjustments and a dry cleaning business that Zimmer had constructed to service the inventory.
Men’s Wearhouse rents more tuxedos than any other company, and has found it to be a surprisingly lucrative business. That figure is projected to hit about $235 million by 2019.
“Nobody had the idea that it was such a golden egg”, Zimmer told the Times. The site comes with a lot of bells and whistles, including a visualizer that allows customers to put different merchandise on a mannequin, and a wedding management tool to allow brides and grooms to see where each groomsman is in the tux rental process. Men’s Wearhouse’s current chief executive, Douglas Ewert, said on a recent conference call with investors that rental income was down 3.3 percent in the latest quarter.
Combined with zTailors, the two entities are expected to generate $2.1 million in sales this year, and $28 million by next year.
“Our website is much more sophisticated than these other websites”, he said. You can rent an entire outfit, including shirts, shoes, ties, and cuff links, for $150. “In addition, because of their tech and coding needs, we are proud to announce that we have partnered Generation Tux with Code Louisville to mentor students and grow their software talent locally”. Then at the warehouse, tailors will customize each garment before it is mailed out.
Each tuxedo will be embedded with an RFID chip, avoiding the need for any obvious labels that reveal the garment as a rental.
But Zimmer is also hoping to set Generation Tux apart by investing heavily in technology.
“It’s pretty clear that although the groom would like to be included and have the opportunity to express his opinion, the final decision is the bride’s”, Zimmer said.