DSW Designer Shoe Warehouse completes Town Shoes purchase

Date:

exc-537153e7e4b05ff1a082b619

Share post:


Photo: DSW Designer Shoe WarehousePhoto: DSW Designer Shoe Warehouse

Photo: DSW Designer Shoe Warehouse

Discount footwear retailer DSW Designer Shoe Warehouse (DSW) has completed its share purchase of Canadian footwear retailer, Town Shoes, for $75.5 million (US$68.7 million) in cash. DSW acquired a 49.2% interest in Town Shoes, paving the way for DSW to open Canadian stores. DSW’s initial stake provides 50% voting control and board representation, equal to Town Shoes’ primary remaining shareholder, Callisto Capital.


STORE-2014-Banner-300-x-250-May-1.pngSTORE-2014-Banner-300-x-250-May-1.png

DSW is hugely popular in the United States, currently operating 410 retail locations with more on the way. Its name indicates its business model: 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, hence its ability to complete its all-cash purchase of Town Shoes. 

DSW’s share purchase comes with the option to buy the rest of Town Shoes’ shares after four years. Town Shoes is already familiar with the Canadian retail market, and it may be able to help DSW set up its retail locations as well as other operations, including logistics. Town Shoes is Canada’s largest footwear retailer, with 182 stores and $291 million in sales for 2013. Namesake ‘The Shoe Company‘ also operates under Town Shoes’ control. 

In the winter of 2013, sources informed us that Town Shoes/The Shoe Company intended to open DSW-like stores in Canada. Plans have since changed, now that DSW itself will operate in Canada via Town Shoes. 

When DSW opens in Canada, it will rapidly face competition from other new retailers selling discounted footwear. Nordstrom Rack, Off 5th by Saks Fifth Avenue, 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.

NEXT ARTICLE: Canada Is Declared An International Retail ‘Hot Spot’

PREVIOUS ARTICLE: Dylan’s Candy Bar Looks To Open In Canada

GO BACK

Subscribe to RETAIL INSIDER

* indicates required




RELATED ARTICLES

Load more

Subscribe to the Newsletter

Subscribe

* indicates required

RECENT articles

From The Desk: Expansion and Adaptation Define This Week’s Canadian Retail Landscape

Canadian retail accelerates expansion with new stores and strategic investments amid evolving consumer demands and trade challenges.

Daily Synopsis: August 28, 2026

Retail Insider published 12 articles today focusing on Canadian retail expansions, sales shifts, and economic growth trends.

Iconic BIC® Cristal Reimagined as Seletti Lamp, Available for Pre-Order at Maison Territo

Maison Territo introduces Seletti’s new BIC® Lamp, a 12:1 reimagining of the iconic BIC® Cristal pen, now available for pre-order in Montréal.

Canadian economy bounces back in Q2: Statistics Canada

"The problem going forward is that trade uncertainty is back with new U.S. tariffs now imposed, Canadian retaliation due early next month, and the prospect of further escalation hard to dismiss."

DUER expands to Winnipeg market with new store at CF Polo Park

The retailer has mapped 10 additional stores over the next 24 months, though Canadian retail is only one part of that vision. 

IGA Returns to Longtime Edmonton Grocery Site Following L’OCA Closure

Sobeys has reopened the Valleyview IGA in west Edmonton following L’OCA Market’s closure, returning the IGA banner to a grocery site with more than 60 years of history.

Cineplex Turns Movie Fandom Into Growing Retail Business

Cineplex is turning movie fandom into a growing retail business as merchandise sales jump 45% and moviegoer spending reaches record levels.

JD Sports Opens Downtown Montreal Flagship as Canadian Expansion Accelerates

JD Sports has opened a new flagship at 777 Sainte-Catherine Street West in downtown Montreal as the retailer rapidly expands its Canadian store network.

Best Buy Canada Sales Decline as Express Expansion Matures

Best Buy Canada revenue fell 4.2% in Q2 as the retailer lapped strong growth tied to its 167-store Best Buy Express expansion.

Explosive growth seen for Jersey Mike’s concept in Canada

The company plans to open another 25 locations in 2027 as it works toward its initial goal of 300 Jersey Mike’s restaurants in Canada over the next 10 to 12 years.

Lessons retailers can learn from the Value Village experience: Doug Stephens

“What they're really selling, when you get right down to it, is they're selling dopamine."

Retail payroll employment declines in June: Statistics Canada

In June, the largest monthly declines in retail trade were in grocery and convenience retailers (-1,200; -0.3%).

Coffee Bike concept continues to expand across Canada (Video)

The first Coffee Bike in 2018 and has since sold 42 units to 27 owners.

EMERGE reports 7.4% revenue growth in Q2 2026

Gross profit increased 14.8 per cent to $3.55 million from $3.09 million, while gross margin rose to 39 per cent from 36.5 per cent.

Vistera Launches Canadian-Built Platform for SMB Services

The company said the launch marks a turning point for professional services in Canada.

Daily Synopsis: August 27, 2026

Chapman's Ice Cream to cut American ingredients, Montreal Shein pop-up sees protest, Saskatchewan launches 50% US alcohol tariff, Drake launching U of T collection for fall, SSENSE grapples with new tariffs, and other news.

Renewed ‘Buy Canadian’ Movement Begins Reshaping Retail Strategy

The Buy Canadian movement is gaining momentum as retailers promote domestic products, consumers seek Canadian alternatives and tariffs reshape retail strategy.

Authentic Takes Majority Stake in Drake’s OVO as Vince Takes Over Retail Operations

Authentic Brands Group has announced its acquisition of a majority stake in OVO's intellectual property, co-founded by Drake. The partnership aims to expand OVO's global reach while maintaining its creative identity.

Lessons for Mid-Market Retail from the Roots Acquisition

The Roots acquisition offers lessons for mid-market retailers on differentiation, brand value, cultural relevance and protecting the assets customers value.

Samsung Canada Reinforces Role of Physical Retail as Technology Evolves

Samsung Canada is investing in experience-led stores that support product discovery, education and service as consumers increasingly move between digital and physical shopping channels.