DSW 2009 Annual Report Download - page 11

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in the country with the objective of understanding demand for our products in each market over time and our ability
to capture that demand. The analysis also looks at current penetration levels in markets we serve and our expected
deepening of those penetration levels as we continue to grow and become the shoe retailer of choice in each market.
We plan to increase dsw.com sales through serving customers in areas where we do not currently operate stores
and offering current customers additional styles and sizes not available in their local store. In our leased business,
we are refining our merchandise assortment to best meet the needs of our different leased business customers and we
are actively pursuing opportunities with new leased business partners.
Driving Sales through Enhanced Merchandising
Our merchandising group constantly monitors current fashion trends as well as historical sales trends to
identify popular styles and styles that may become popular in the upcoming season. We track store performance and
sales trends on a weekly basis and have a flexible buying process that allows us to order styles frequently throughout
each season. To keep our product mix fresh and on target, we test new fashions and actively monitor sell-through
rates. We also aim to improve the quality and breadth of existing vendor offerings and identify new vendor
opportunities. Our merchandising initiative will continue investments in planning, allocation and distribution
systems to improve inventory and markdown management.
Investment in Infrastructure
As we grow our business and fill in markets to their full potential, we believe we will improve our profitability
by leveraging our cost structure in areas of regional management, supply chain and overhead functions. Addi-
tionally, we intend to continue investing in our infrastructure to improve our operating and financial performance.
Most significantly, we believe continued investment in information systems will enhance our efficiency in areas
such as merchandise planning and allocation, inventory management, distribution, labor management and point of
sale functions.
DSW Store Locations
As of January 30, 2010, we operated 305 DSW stores in 39 states in the United States. The following table
shows the number of our DSW stores by state.
Alabama ................................................................ 2
Arizona ................................................................. 6
Arkansas ................................................................ 1
California ................................................................ 31
Colorado ................................................................ 10
Connecticut .............................................................. 3
Delaware ................................................................ 1
Florida .................................................................. 22
Georgia ................................................................. 14
Illinois .................................................................. 15
Indiana.................................................................. 7
Iowa ................................................................... 1
Kansas .................................................................. 2
Kentucky ................................................................ 3
Louisiana ................................................................ 2
Maine .................................................................. 1
Maryland ................................................................ 10
Massachusetts............................................................. 12
Michigan ................................................................ 14
7