On the heels of a successful selling season in November and December 2011, retailer DSW today announced revised plans to open up to 40 new stores nationwide by the end of 2012. Short for Designer Shoe Warehouse, the company currently operates 326 stores in 40 states that sell shoes and accessories for women, men, and children. Previously, up to 15 new DSW stores were slated to open during 2012.
Accelerating the pace of its expansion allows DSW to boost its same-store sales, the industry’s indicator of a retailer’s health, and positions the company to reach $2 billion in sales, having logged $1.8 billion in 2011, when the new stores are up and running.
DSW’s spacious stores offer trendy shoes and handbags, as well as classic and conservative mainstays. Several popular brands, such as BCBG, Jimmy Choo, Prada, Gucci, and Marc by Marc Jacobs, rely on the shoe chain to keep their names in front of consumers who typically wouldn’t buy their pricy products directly.
DSW’s effort to quickly ratchet up its store count follows a few key accolades in 2011. The company’s net sales increased nearly 14% vs. the year-earlier period. Same-store sales also rose 13%. Net income increased by about 96% over the same period. DSW’s positive performance was fueled by the addition of new stores, sales growth at DSW’s online stores, and increased demand for shoes across all product categories.
Once a seemingly unstoppable, fast-growing shoe retailer, DSW had slowed its expansion to a more prudent pace in recent years until the chain saw signs of an economic recovery and a rise in consumer confidence. It seems that DSW noted quite a few glimmers of hope within its holiday sales spreadsheets to put the pedal to the metal on growing its network of stores.
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