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SOURCING & SUPPLY CHAIN
A
s one of the US’s fastest growing shoe retailers, it
can’t be denied that the Designer Shoe Warehouse,
or DSW as it’s more commonly known, has plenty of
confidence. As of early October, the Ohio-based
company operated 354 stores in 41 states and 342 leased
departments for other retailers. By the end of this year, it will
have opened 39 new stores, with 26 in the third quarter alone
and more in the pipeline for next year.
Its strengths lie in the vast amounts of stock it carries – each
store averages 2,000 square metres and about 24,000 pairs of
shoes – and its “value proposition”. Its shop layouts aim to
“satisfy both the rational and emotional shopping needs of core
customers”, who are “brand, value quality and style conscious
shoppers”, offering them a “vast, exciting assortment of in-
season styles”.
It is this idea of “excitement” that it wishes to engender – its
promotional material is littered with the word – plus
“happiness”, “fun” and “energy”. “DSW wrote a new chapter in
retail history. It has a business model unlike anything else that’s
out there,” claims chief merchandising officer Debbie Ferrée.
Harris Mustafa, the executive vice-president in charge of
supply chain, merchandise planning and allocation, is equally
confident of DSW’s role: “We are going to redraw the landscape
for footwear retailing in the US,” he says.
The fourth largest adult shoe retailer in the US has changed
strategy in recent years. Prior to 2005 almost 70% of what it
sold was ‘closeout’, or clearance stock. Today only 10% is
closeout. “Now that we are a large specialty retailer we needed
to be able to plan better, allocate better and integrate these
activities in a way that makes sense for our business objectives,
our planning process and also supports the merchants,” says
Mr Mustafa.
It moved from a “mosaic of Excel spreadsheets”, databases
and independent pieces of technology operating at just above
store level to transferring its systems to technology provider
JDA’s enterprise planning suite. This helped it to improve
productivity and efficiency, working from a single platform and
making business-wide analysis and decisions.
Effectively managing the supply and distribution chain is a
task under constant review. In a recent conference call with
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Seeking the tools to
redraw the landscape
WORLD FOOTWEAR | NOVEMBER/DECEMBER 2012
DSW’s ambitious expansion strategy requires careful planning, with the US footwear
retailer opening 26 stores in the third quarter of 2012 alone. It hopes next year’s move
to a ‘drop ship’ model of stock control will help it grow beyond its physical boundaries.
DSW Shoes, Green Oak Village Place in Brighton, Michigan, USA.