Columbus, OH-based DSW, which had its IPO in June, currently has 188 stores in 32 states and will end the year with 199. The footwear retailer, which carries branded shoes in a self-serve environment, recently implemented a statistical methodology to choose its store locations, Horvath said. "We've learned that a location might look good to a real estate broker or other retailers, but it might not be the right location for DSW," he noted.

The retailer shies away from being in the same shopping center with a bookstore, movie theater or furniture store. "They steal customers from us," Horvath explained, adding that DSW's target customer--women age 25 to 35 years old--prefer to shop alone and spend 40 minutes to 90 minutes doing the "one-shoe walk" and trying on as many shoes as they want. The retailer prefers co-tenancy with fashion retailers like Old Navy and likes lifestyle centers, Horvath said.

Future stores will range from 15,000 sf to 30,000 sf. "We've found that we do a 15,000-sf store and have the same assortment as a 30,000-sf store," Horvath said, adding that the retailer strives to achieve sales of $300 per sf.