JoS. A. Bank to test tuxedo rental

Hampstead, Md. JoS. A. Bank Clothiers said Wednesday it will test a tuxedo rental business in 5% of its stores beginning in January, in an effort to expand its offerings to wedding parties.

Following the test, the company plans to roll out the rental service in more than half of its 474 stores in the spring. The company operates in 42 states.

Currently, the company sells, but does not rent, tuxedos. The rental service adds formalwear products and services that are commonly used by wedding parties and offers "one-stop shopping" to customers, the company said.

"These products complete our formal assortment," said CEO R. Neal Black, in a statement.

The retailer said it will work with a national distributor that will own the inventory and deliver orders to the stores. The structure will add to its margins, but at a lower rate than merchandise sales.

"The business could eventually generate higher margins, if the company invests in its own infrastructure," CFO David E. Ullman said in a statement.