The race to sell off-price luxury goods just got more crowded.
K&G — a deep-discount clothing chain owned by Men’s Wearhouse — is gearing up to sell pricey designer labels at about a third of its more than 100 stores beginning next spring, sources told The Post.
K&G has two stores in Manhattan.
Men’s Wearhouse CEO George Zimmer — famous for declaring in his low-budget TV ads, “You’re gonna like the way you look” — is planning a big marketing push for K&G, according to people close to the company.
That’s a potential threat to rival off-price clothier Syms and its Filene’s Basement chain, which, as first reported by The Post, Zimmer had sought to buy out of bankruptcy earlier this year.
Syms CEO Marcy Syms snagged Filene’s Basement after Zimmer’s winning bid of $62 million was disqualified amid complaints that it arrived late.
K&G — whose bare-bones stores have been known mainly for concrete floors, fluorescent track lights and $99 suits — already has been taking steps to move upscale and add women’s clothing.
In addition to remodeling some locations, officials are “scouring the market, buying up designer stuff at specialty stores around America,” according to a person close to the company.
One door-buster deal that’s in the works: Brioni suits — which typically carry price tags of $5,000 and up — offered at two for $4,000.
The move “is the right step to take,” as K&G looks to inject more excitement into its stores, said Richard Jaffe, an analyst at Stifel Nicolaus.
K&G’s timing has surprised some industry insiders, though. Saks, Neiman Marcus and Barneys are adding more factory stores to clear discounted goods, and online luxe retailers like Gilt Groupe continue to spawn imitators.
Men’s Wearhouse declined to comment yesterday.
On the plus side, the mounds of excess luxury goods next year aren’t likely to match those seen in recent seasons because retailers have clamped down on orders, said Mike Tesler of Retail Concepts, a Norwell, Mass.-based consultant.
Zimmer, a highly successful retail merchant, is likely well aware of that fact, and is probably aiming to create an upscale “halo” with a small assortment of designer clothing, Tesler said.
“Marketing and retailing is about perception more than reality,” he said. “It’s about some sizzle, but it’s not like they’re really gonna sell prime rib and filet mignon.”