DSW's Stores Shrinking

OLUMBUS, OH-Big-box shoe retailer DSW Inc.’s new stores that it is opening this year are 20% smaller than the average of 25,400 sf in its 209-unit portfolio. The smaller stores are turning out to be more productive than their larger counterparts, executives said during their second-quarter conference call.

For example, the average DSW store brings in $5.3 million annually and posts sales per-sf of $217. The newer units, at around 19,500 sf, bring in an average of $232 per-sf. One unit that opened in Marina Del Ray, CA, last month that is not quite 15,000 sf is projected to bring in $5.6 million at $384 per-sf.

“This store and other like it have caused us to rethink the selling floor, presentation, staffing and product flow,” says Peter Horvath, DSW’s president. “All of these changes point to greater efficiency.”