DSW Designer Shoe Warehouse completes Town Shoes purchase

Date:

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.

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 ARTICLECanada Is Declared An International Retail ‘Hot Spot’

PREVIOUS ARTICLEDylan’s Candy Bar Looks To Open In Canada

GO BACK

Subscribe to RETAIL INSIDER

* indicates required




LEAVE A REPLY

Please enter your comment!
Please enter your name here

More From Retail Insider

Pinterest Predicts 2024 Trends in Retail and Fashion from User Activity [Feature Interview]

Pinterest's annual trending report's in the past have been remarkably accurate, given nearly 500 million users.

Overall Retail Leasing and Investment Picture in Canada Remains Stable Despite Headwinds [Feature]

Experts discussed the Canadian retail industry at the recent Vancouver Strategy and Leasing, highlighting a strong market as well as potential challenges ahead as consumers struggle.

California-Based Wetzel’s Pretzels Plans Aggressive Expansion in Canada [Interview]

The popular foodservice chain has big plans for the Canadian market, including expanding outside of traditional retail locations.

Drop in Chinese Tourists Prompts Qiviuk Knitwear to Shift Retail Strategy [Feature Interview]

A significant reduction in Chinese visitors to Canada since the pandemic, exacerbated by political tensions, has a Canadian luxury brand innovating in various ways to target its core customer.

Enhancing Retail Environments: A Contemporary Feng Shui Consultant’s Insights on Design, Colour, and Visitor Experience [Podcast]

Craig and Mark Ainley discuss the profound impact of Feng Shui and flow on retail spaces. Mark highlights how subtle cues, from sharp angles to vibrant colours, influence consumer behaviour, emphasizing the importance of creating an authentic and inviting retail atmosphere.

Top Shopping Centres in Canada Evolving Experiential Elements to Grow Foot Traffic and Tenant Revenue [Interview]

JLL’s Senior Marketing Director, Property Management, discusses how creating unique experiences tailored to local markets helps drive overall asset value through increased footfall and productivity.

Mastermind Toys Acquired by Joe Mimran’s Unity Acquisitions, 18 Stores to Close 

Unity will acquire the majority of Mastermind Toys store locations following a bankruptcy filing, with a significant number of employees continuing with the business.

Active Gaming Facility ‘Activate’ Plans Rapid Cross-Canada Expansion with New Leases [Interview]

The company, known for its unique competitive socializing concept, aims to open multiple locations in Canada while also planning a global expansion.

Alo Yoga Entering Quebec Market Amid Ongoing Canadian Store Expansion

The US-based athleisure brand, similar to Lululemon, has launched a multi-store-per-city strategy in Canada as it enters the Belle Provence. 

From ‘Greedflation’ to Government Scrutiny: A Rollercoaster Year for Canada’s Grocery Industry [Op-Ed]

Sylvain Charlebois discusses how over the past year the Canadian grocery industry has faced unprecedented political scrutiny and intervention, while also saying there's potential for a re-emergence of unethical schemes.

West Edmonton Mall Continues to Expand Luxury Retail with Addition of Moncler; Tiffany Marks 10 Years

Italian luxury brand Moncler is the latest to join the massive shopping centre with retailers such as Louis Vuitton, Balenciaga and Gucci. The mall’s first luxury store, Tiffany & Co. is also marking 10 years. 

Canadian Consumers to Prioritize Brick-and-Mortar Retail into December [Report/Interview]

Electronics are among the top gifts, with moderate growth in the restaurant and grocery sectors expected while also noting a controlled promotional approach due to slowing inflation.

Salesforce’s Rob Garf Discusses Canadian Retailers’ Strategies Amidst Q3 E-commerce Slowdown [Report/Interview]

Garf discusses a report showing a 9% decline in Canadian e-commerce growth, indicating a consumer expectation for discounts in the upcoming months. He discusses a consumer shift and how retailers can address it.

Early Signs Point to a Strong Holiday Shopping Season in Canada Despite Economic Challenges

Reports indicate that last Saturday and Sunday saw the biggest surge in consumer spending so far, with predictions made as we head into December.

Specsavers Set to Reach 100 Canadian Locations in Early 2024, Expanding into New Markets [Interviews]

The eyewear retailer, which entered Canada in 2021, is rapidly expanding and looking to gain market share from established players.

Burton Snowboards Transforms Toronto Flagship for [ak] Collection as Brand Looks to Expand [Interview/Photos]

The high-performance AK collection is a new focus, with Burton planning to grow its retail presence in Canada with more stores in key markets.

Liz Rodbell Returns to Hudson’s Bay as President and CEO Following Sophia Hwang-Judiesch Departure 

Rodbell led Hudson’s Bay and Lord & Taylor from 2013 to 2017, and she returns at a challenging time for HBC. 

Upper Canada Mall in Newmarket Adding Tenants as Area Sees Rapid Population Growth [Interview]

The super regional centre, considered the leader north of Toronto, is adding new retailers and concepts to attract consumers.

Lullaboo Nursery and Childcare Centre Expanding into Non-Traditional Locations Including Shopping Centres [Interview]

The company's CEO says that finding space is a challenge for the childcare concept, which is seeing significant demand from parents.

Gucci Opens Impressive Main Floor ‘World Of’ Boutique Concession at Holt Renfrew Calgary [Photos]

The approximately 4,000 square foot space houses the Italian luxury brand’s full collection for women and men. 

RECENT RETAIL INSIDER VIDEOS

Advertisment

Subscribe to the Newsletter

Subscribe

* indicates required

RECENT articles

Pinterest Predicts 2024 Trends in Retail and Fashion from User Activity [Feature Interview]

Pinterest's annual trending report's in the past have been remarkably accurate, given nearly 500 million users.

Overall Retail Leasing and Investment Picture in Canada Remains Stable Despite Headwinds [Feature]

Experts discussed the Canadian retail industry at the recent Vancouver Strategy and Leasing, highlighting a strong market as well as potential challenges ahead as consumers struggle.

California-Based Wetzel’s Pretzels Plans Aggressive Expansion in Canada [Interview]

The popular foodservice chain has big plans for the Canadian market, including expanding outside of traditional retail locations.

Drop in Chinese Tourists Prompts Qiviuk Knitwear to Shift Retail Strategy [Feature Interview]

A significant reduction in Chinese visitors to Canada since the pandemic, exacerbated by political tensions, has a Canadian luxury brand innovating in various ways to target its core customer.

Enhancing Retail Environments: A Contemporary Feng Shui Consultant’s Insights on Design, Colour, and Visitor Experience [Podcast]

Craig and Mark Ainley discuss the profound impact of Feng Shui and flow on retail spaces. Mark highlights how subtle cues, from sharp angles to vibrant colours, influence consumer behaviour, emphasizing the importance of creating an authentic and inviting retail atmosphere.

Top Shopping Centres in Canada Evolving Experiential Elements to Grow Foot Traffic and Tenant Revenue [Interview]

JLL’s Senior Marketing Director, Property Management, discusses how creating unique experiences tailored to local markets helps drive overall asset value through increased footfall and productivity.

Mastermind Toys Acquired by Joe Mimran’s Unity Acquisitions, 18 Stores to Close 

Unity will acquire the majority of Mastermind Toys store locations following a bankruptcy filing, with a significant number of employees continuing with the business.

Active Gaming Facility ‘Activate’ Plans Rapid Cross-Canada Expansion with New Leases [Interview]

The company, known for its unique competitive socializing concept, aims to open multiple locations in Canada while also planning a global expansion.

Alo Yoga Entering Quebec Market Amid Ongoing Canadian Store Expansion

The US-based athleisure brand, similar to Lululemon, has launched a multi-store-per-city strategy in Canada as it enters the Belle Provence. 

From ‘Greedflation’ to Government Scrutiny: A Rollercoaster Year for Canada’s Grocery Industry [Op-Ed]

Sylvain Charlebois discusses how over the past year the Canadian grocery industry has faced unprecedented political scrutiny and intervention, while also saying there's potential for a re-emergence of unethical schemes.

West Edmonton Mall Continues to Expand Luxury Retail with Addition of Moncler; Tiffany Marks 10 Years

Italian luxury brand Moncler is the latest to join the massive shopping centre with retailers such as Louis Vuitton, Balenciaga and Gucci. The mall’s first luxury store, Tiffany & Co. is also marking 10 years. 

Canadian Consumers to Prioritize Brick-and-Mortar Retail into December [Report/Interview]

Electronics are among the top gifts, with moderate growth in the restaurant and grocery sectors expected while also noting a controlled promotional approach due to slowing inflation.

Salesforce’s Rob Garf Discusses Canadian Retailers’ Strategies Amidst Q3 E-commerce Slowdown [Report/Interview]

Garf discusses a report showing a 9% decline in Canadian e-commerce growth, indicating a consumer expectation for discounts in the upcoming months. He discusses a consumer shift and how retailers can address it.

Early Signs Point to a Strong Holiday Shopping Season in Canada Despite Economic Challenges

Reports indicate that last Saturday and Sunday saw the biggest surge in consumer spending so far, with predictions made as we head into December.

Specsavers Set to Reach 100 Canadian Locations in Early 2024, Expanding into New Markets [Interviews]

The eyewear retailer, which entered Canada in 2021, is rapidly expanding and looking to gain market share from established players.

Burton Snowboards Transforms Toronto Flagship for [ak] Collection as Brand Looks to Expand [Interview/Photos]

The high-performance AK collection is a new focus, with Burton planning to grow its retail presence in Canada with more stores in key markets.

Liz Rodbell Returns to Hudson’s Bay as President and CEO Following Sophia Hwang-Judiesch Departure 

Rodbell led Hudson’s Bay and Lord & Taylor from 2013 to 2017, and she returns at a challenging time for HBC. 

Upper Canada Mall in Newmarket Adding Tenants as Area Sees Rapid Population Growth [Interview]

The super regional centre, considered the leader north of Toronto, is adding new retailers and concepts to attract consumers.

Lullaboo Nursery and Childcare Centre Expanding into Non-Traditional Locations Including Shopping Centres [Interview]

The company's CEO says that finding space is a challenge for the childcare concept, which is seeing significant demand from parents.

Gucci Opens Impressive Main Floor ‘World Of’ Boutique Concession at Holt Renfrew Calgary [Photos]

The approximately 4,000 square foot space houses the Italian luxury brand’s full collection for women and men.