Case Study: Shoe Retailer DSW Optimizes Fixed Store Capacities With Help From JDA

DSW Inc. is the fourth-largest adult footwear retailer in the U.S., with more than 300 shoe stores in 39 states and $1.6B in annual revenue. DSW also operates more than 350 leased footwear departments for four other retailers, including Stein Mart, Filene's Basement, Gordmans and Frugal Fannie's.

Since 1991, DSW Inc., a leading U.S. based footwear retailer, has built its brand by offering a unique combination of assortment, convenience and value that provides a competitive edge while appealing to a broad range of consumers. The company opened 20 stores in 2010 and an additional 10 so far this year.

At an average of over 20,000 square feet each, DSW retail stores feature approximately 24,000 pairs of shoes and accessories such as handbags and hosiery. While this store format seems large, the fixed capacity of its branded retail locations as well as its leased shoe departments has created a strategic challenge. For DSW, this means specifically targeting assortments to the needs of shoppers in each market. With limited back rooms in which to keep excess merchandise, store inventories must be managed to an exacting degree.