DSW » Topics » Growth Strategy

These excerpts taken from the DSW 10-K filed Apr 1, 2009.
Growth Strategy
 
Our growth strategy is to continue to strengthen our position as a leading better-branded footwear retailer by pursuing the following three primary strategies for growth in sales and profitability: expanding our store base and dsw.com, driving sales through enhanced merchandising and investment in our infrastructure.


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Table of Contents

Expanding Our Store Base and dsw.com
 
We plan to open approximately 10 stores in fiscal 2009 and increase dsw.com sales. Our plan is to open stores in both new and existing markets with the primary focus on power strip centers as well as repositioning existing stores. We also plan to continue to pursue opportunities in regional malls, lifestyle centers and urban street locations in appropriate markets. In general, our evaluation of potential new stores focuses on location within a retail area, demographics, co-tenancy, store size and configuration, and lease terms. Our long-range planning model includes analysis of every major metropolitan area in the country with the objective of understanding the demand for our products in each market over time, and our ability to capture that demand. The analysis also looks at our current penetration levels in the markets we serve and our expected deepening of those penetration levels as we continue to grow our brand and become the shoe retailer of choice in our markets.
 
Driving Sales through Enhanced Merchandising
 
Our merchandising group constantly monitors current fashion trends as well as historical sales trends to identify popular styles and styles that may become popular in the upcoming season. We track store performance and sales trends on a weekly basis and have a flexible incremental buying process that enables us to order styles frequently throughout each season, in contrast to department stores, which typically make one large purchase at the beginning of the season. To keep our product mix fresh and on target, we test new fashions and actively monitor sell-through rates in our stores. We also aim to increase the quality and breadth of existing vendor offerings and identify new vendor opportunities. In addition to our merchandising initiative, we will continue to invest in planning, allocation and distribution to continue improving our inventory and markdown management.
 
Investment in Infrastructure
 
As we grow our business and fill in markets to their full potential, we believe we will improve our profitability by leveraging our cost structure in areas of regional management, supply chain and overhead functions. Additionally, we intend to continue investing in our infrastructure to improve our operating and financial performance. Most significantly, we believe continued investment in information systems will enhance our efficiency in areas such as merchandise planning and allocation, inventory management, distribution, labor management and point of sale functions.
 
Growth Strategy
 
Our growth strategy is to continue to strengthen our position as a leading better-branded footwear retailer by pursuing the following three primary strategies for growth in sales and profitability: expanding our store base and dsw.com, driving sales through enhanced merchandising and investment in our infrastructure.


6


Table of Contents

Expanding Our Store Base and dsw.com
 
We plan to open approximately 10 stores in fiscal 2009 and increase dsw.com sales. Our plan is to open stores in both new and existing markets with the primary focus on power strip centers as well as repositioning existing stores. We also plan to continue to pursue opportunities in regional malls, lifestyle centers and urban street locations in appropriate markets. In general, our evaluation of potential new stores focuses on location within a retail area, demographics, co-tenancy, store size and configuration, and lease terms. Our long-range planning model includes analysis of every major metropolitan area in the country with the objective of understanding the demand for our products in each market over time, and our ability to capture that demand. The analysis also looks at our current penetration levels in the markets we serve and our expected deepening of those penetration levels as we continue to grow our brand and become the shoe retailer of choice in our markets.
 
Driving Sales through Enhanced Merchandising
 
Our merchandising group constantly monitors current fashion trends as well as historical sales trends to identify popular styles and styles that may become popular in the upcoming season. We track store performance and sales trends on a weekly basis and have a flexible incremental buying process that enables us to order styles frequently throughout each season, in contrast to department stores, which typically make one large purchase at the beginning of the season. To keep our product mix fresh and on target, we test new fashions and actively monitor sell-through rates in our stores. We also aim to increase the quality and breadth of existing vendor offerings and identify new vendor opportunities. In addition to our merchandising initiative, we will continue to invest in planning, allocation and distribution to continue improving our inventory and markdown management.
 
Investment in Infrastructure
 
As we grow our business and fill in markets to their full potential, we believe we will improve our profitability by leveraging our cost structure in areas of regional management, supply chain and overhead functions. Additionally, we intend to continue investing in our infrastructure to improve our operating and financial performance. Most significantly, we believe continued investment in information systems will enhance our efficiency in areas such as merchandise planning and allocation, inventory management, distribution, labor management and point of sale functions.
 
Growth
Strategy



 



Our growth strategy is to continue to strengthen our position as
a leading better-branded footwear retailer by pursuing the
following three primary strategies for growth in sales and
profitability: expanding our store base and dsw.com, driving
sales through enhanced merchandising and investment in our
infrastructure.





6





Table of Contents







Expanding
Our Store Base and dsw.com



 



We plan to open approximately 10 stores in fiscal 2009 and
increase dsw.com sales. Our plan is to open stores in both new
and existing markets with the primary focus on power strip
centers as well as repositioning existing stores. We also plan
to continue to pursue opportunities in regional malls, lifestyle
centers and urban street locations in appropriate markets. In
general, our evaluation of potential new stores focuses on
location within a retail area, demographics, co-tenancy, store
size and configuration, and lease terms. Our long-range planning
model includes analysis of every major metropolitan area in the
country with the objective of understanding the demand for our
products in each market over time, and our ability to capture
that demand. The analysis also looks at our current penetration
levels in the markets we serve and our expected deepening of
those penetration levels as we continue to grow our brand and
become the shoe retailer of choice in our markets.


 




Driving
Sales through Enhanced Merchandising



 



Our merchandising group constantly monitors current fashion
trends as well as historical sales trends to identify popular
styles and styles that may become popular in the upcoming
season. We track store performance and sales trends on a weekly
basis and have a flexible incremental buying process that
enables us to order styles frequently throughout each season, in
contrast to department stores, which typically make one large
purchase at the beginning of the season. To keep our product mix
fresh and on target, we test new fashions and actively monitor
sell-through rates in our stores. We also aim to increase the
quality and breadth of existing vendor offerings and identify
new vendor opportunities. In addition to our merchandising
initiative, we will continue to invest in planning, allocation
and distribution to continue improving our inventory and
markdown management.


 




Investment
in Infrastructure



 



As we grow our business and fill in markets to their full
potential, we believe we will improve our profitability by
leveraging our cost structure in areas of regional management,
supply chain and overhead functions. Additionally, we intend to
continue investing in our infrastructure to improve our
operating and financial performance. Most significantly, we
believe continued investment in information systems will enhance
our efficiency in areas such as merchandise planning and
allocation, inventory management, distribution, labor management
and point of sale functions.


 




Growth
Strategy



 



Our growth strategy is to continue to strengthen our position as
a leading better-branded footwear retailer by pursuing the
following three primary strategies for growth in sales and
profitability: expanding our store base and dsw.com, driving
sales through enhanced merchandising and investment in our
infrastructure.





6





Table of Contents







Expanding
Our Store Base and dsw.com



 



We plan to open approximately 10 stores in fiscal 2009 and
increase dsw.com sales. Our plan is to open stores in both new
and existing markets with the primary focus on power strip
centers as well as repositioning existing stores. We also plan
to continue to pursue opportunities in regional malls, lifestyle
centers and urban street locations in appropriate markets. In
general, our evaluation of potential new stores focuses on
location within a retail area, demographics, co-tenancy, store
size and configuration, and lease terms. Our long-range planning
model includes analysis of every major metropolitan area in the
country with the objective of understanding the demand for our
products in each market over time, and our ability to capture
that demand. The analysis also looks at our current penetration
levels in the markets we serve and our expected deepening of
those penetration levels as we continue to grow our brand and
become the shoe retailer of choice in our markets.


 




Driving
Sales through Enhanced Merchandising



 



Our merchandising group constantly monitors current fashion
trends as well as historical sales trends to identify popular
styles and styles that may become popular in the upcoming
season. We track store performance and sales trends on a weekly
basis and have a flexible incremental buying process that
enables us to order styles frequently throughout each season, in
contrast to department stores, which typically make one large
purchase at the beginning of the season. To keep our product mix
fresh and on target, we test new fashions and actively monitor
sell-through rates in our stores. We also aim to increase the
quality and breadth of existing vendor offerings and identify
new vendor opportunities. In addition to our merchandising
initiative, we will continue to invest in planning, allocation
and distribution to continue improving our inventory and
markdown management.


 




Investment
in Infrastructure



 



As we grow our business and fill in markets to their full
potential, we believe we will improve our profitability by
leveraging our cost structure in areas of regional management,
supply chain and overhead functions. Additionally, we intend to
continue investing in our infrastructure to improve our
operating and financial performance. Most significantly, we
believe continued investment in information systems will enhance
our efficiency in areas such as merchandise planning and
allocation, inventory management, distribution, labor management
and point of sale functions.


 




These excerpts taken from the DSW 10-K filed Apr 17, 2008.
Growth Strategy
 
Our growth strategy is to continue to strengthen our position as a leading better-branded footwear retailer by pursuing the following three primary strategies for growth in sales and profitability: expanding our store base, driving sales through enhanced merchandising and investment in our infrastructure.
 
Expanding Our Store Base
 
We plan to open at least 30 stores in each fiscal year from fiscal 2008 through fiscal 2010. Our plan is to open stores in both new and existing markets while continuing to expand our store portfolio to include lifestyle and regional mall locations in addition to our traditional power strip venues. In general, our evaluation of potential new stores focuses on location within a retail area, demographics, co-tenancy, store size and configuration, and lease terms. Our long-range planning model includes analysis of every major metropolitan area in the country with the


6


Table of Contents

objective of understanding the demand for our products in each market over time, and our ability to capture that demand. The analysis also looks at our current penetration levels in the markets we serve and our expected deepening of those penetration levels as we continue to grow our brand and become the shoe retailer of choice in our market.
 
Driving Sales Through Enhanced Merchandising
 
Our merchandising group constantly monitors current fashion trends as well as historical sales trends to identify popular styles and styles that may become popular in the upcoming season. We track store performance and sales trends on a weekly basis and have a flexible incremental buying process that enables us to order styles frequently throughout each season, in contrast to department stores, which typically make one large purchase at the beginning of the season. To keep our product mix fresh and on target, we test new fashions and actively monitor sell-through rates in our stores. We also aim to increase the quality and breadth of existing vendor offerings and identify new vendor opportunities. In addition to our merchandising initiative, we will continue to invest in planning, allocation and distribution to continue to improve our inventory and markdown management.
 
Investment In Infrastructure
 
As we grow our business and fill in markets to their full potential, we believe we will continue to improve our profitability by leveraging our cost structure in the areas of marketing, regional management, supply chain and overhead functions. Additionally, we intend to continue investing in our infrastructure to improve our operating and financial performance. Most significantly, we believe continued investment in information systems will enhance our efficiency in areas such as merchandise planning and allocation, inventory management, distribution and point of sale functions.
 
Growth
Strategy



 



Our growth strategy is to continue to strengthen our position as
a leading better-branded footwear retailer by pursuing the
following three primary strategies for growth in sales and
profitability: expanding our store base, driving sales through
enhanced merchandising and investment in our infrastructure.


 




Expanding
Our Store Base



 



We plan to open at least 30 stores in each fiscal year from
fiscal 2008 through fiscal 2010. Our plan is to open stores in
both new and existing markets while continuing to expand our
store portfolio to include lifestyle and regional mall locations
in addition to our traditional power strip venues. In general,
our evaluation of potential new stores focuses on location
within a retail area, demographics, co-tenancy, store size and
configuration, and lease terms. Our long-range planning model
includes analysis of every major metropolitan area in the
country with the





6





Table of Contents






objective of understanding the demand for our products in each
market over time, and our ability to capture that demand. The
analysis also looks at our current penetration levels in the
markets we serve and our expected deepening of those penetration
levels as we continue to grow our brand and become the shoe
retailer of choice in our market.


 




Driving
Sales Through Enhanced Merchandising



 



Our merchandising group constantly monitors current fashion
trends as well as historical sales trends to identify popular
styles and styles that may become popular in the upcoming
season. We track store performance and sales trends on a weekly
basis and have a flexible incremental buying process that
enables us to order styles frequently throughout each season, in
contrast to department stores, which typically make one large
purchase at the beginning of the season. To keep our product mix
fresh and on target, we test new fashions and actively monitor
sell-through rates in our stores. We also aim to increase the
quality and breadth of existing vendor offerings and identify
new vendor opportunities. In addition to our merchandising
initiative, we will continue to invest in planning, allocation
and distribution to continue to improve our inventory and
markdown management.


 




Investment
In Infrastructure



 



As we grow our business and fill in markets to their full
potential, we believe we will continue to improve our
profitability by leveraging our cost structure in the areas of
marketing, regional management, supply chain and overhead
functions. Additionally, we intend to continue investing in our
infrastructure to improve our operating and financial
performance. Most significantly, we believe continued investment
in information systems will enhance our efficiency in areas such
as merchandise planning and allocation, inventory management,
distribution and point of sale functions.


 




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