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Colliers Canada anticipates that Designer Shoe Warehouse (DSW) will open stores in Canada, according to a report released yesterday. If it opens in Canada, Designer Shoe Warehouse will create significant competition in Canada’s discount-priced footwear market. 

For those unfamiliar, Designer Shoe Warehouse is hugely popular in the United States, with almost 380 stores in that country. Its name says it all – it sells designer shoes at discounted prices. Stores average at around 22,000 square feet and each store carries about 24,000 pairs of shoes. The company has hundreds of millions in cash and no debt. We’ve posted a brief video below explaining the store’s concept.

If Designer Shoe Warehouse opens in Canada, it will face increasing competition from other new retailers that will also sell discounted footwear. Nordstrom Rack, Off 5th by Saks Fifth Avenue, Hudson’s Bay Outlet and hr2 by Holt Renfrew will open stores nation-wide within the next three years. Nordstrom Rack will open up to 20 Canadian locations, Off 5th by Saks will open up to 25 locations, and hr2 is looking to open between 15 and 20 locations. That’s a lot of discounted designer footwear (and we at Retail Insider couldn’t be happier).

Given the success of Designer Shoe Warehouse in the United States amid extensive competition, we think Designer Shoe Warehouse will be successful in Canada. And though it wasn’t mentioned in the Colliers report, we’ve heard that Designer Shoe Warehouse is already considering Canadian retail space. 

[Link to Colliers report]

[Designer Shoe Warehouse website]

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