Why Tip Top Tailors is betting on spiffy suits to help it weather economic downturn

We apologize, but this video didn't load.

You can see other videos from our team if you tap here. Try refreshing your browser, or Move over normcore: Why Tip Top Tailors is betting on spiffy suits to help it weather economic downturn We apologize, but this video has failed to load.

You can see other videos from our team by tapping here. If you refresh your browser, or The days of wearing a suit to work are gone, and people are buying suits for the latest style, with barely a thought to whether they are office appropriate. It's that shift, along with a special-events industry still benefiting from pent-up pandemic demand, that makes Itkoff confident that the retailer — owner of Tip Top Tailors, Big and Tall and others — can weather an economic downturn that is already putting pressure on businesses and consumers.

I am not afraid of what the prognosticators are saying. The strategic decisions we made have been paying off, according to Itkoff, and the wedding calendar is so crowded. We're going to continue to gain market share and hurt the competition in the coming year. The Bank of Canada is trying to get control of inflation levels at 40 year highs by implementing the most aggressive series of interest rate hikes in the central bank's history, as the economy has been sputtering. The interest rates are working to cool demand and economic growth has slowed. The businesses are beginning to feel the effects, with some forecasting lower revenues and laying off workers to cope with higher borrowing costs. It doesn't mean consumers are pulling back spending on weddings, proms and parties. Itkoff said those shows had to go on. There is still an expectation, and even personal desire to show up to events dressed to the nines after lockdowns prevented them for so long, even though shoppers may have less money to spend on discretionary purchases. He said that customers are coming to Tip Top for the affordable prices and wide variety of styles on everything from pocket squares to suit jackets.

A Tip Top Tailors suit from the retailer's proprietary Grafton line costs $279 before tax. Moores Clothing, owned by Mississauga-based Moores the Suit People Corp. and Grafton's main competitor, also has suits at the same price point that come in a range of styles and colours. Itkoff expects demand for the company's suits to continue. Special events that were put on hold or delayed due to COVID 19 have now been rescheduled and locked in for the year ahead, he said. Sales increased more than doubled last year compared to 2021, although Itkoff didn't provide exact numbers since the retailer is privately owned.

While special events clothing is on the company's radar, it is not counting out workplace attire just yet. Itkoff said the company still expects to capture sales as people head into the office. He said it was our job to look into the future and say, Where s the demand curve is going to go and how do we play into that. We believe that the demand curve was going to escalate for event dressing. We believe that the demand curve for go-to work suiting was going to be smaller. We also said that when people come out of the pandemic, they are not going to be wearing sweatpants and hoodies to work. They're going to be wearing a smart pair of pants and a nice shirt.