DSW 2009 Annual Report Download - page 12

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Please find page 12 of the 2009 DSW annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

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Minnesota ............................................................... 8
Mississippi ............................................................... 1
Missouri................................................................. 4
Nebraska ................................................................ 2
Nevada.................................................................. 3
New Hampshire ........................................................... 1
New Jersey............................................................... 10
NewYork................................................................ 18
North Carolina ............................................................ 6
Ohio . .................................................................. 14
Oklahoma ............................................................... 2
Oregon.................................................................. 3
Pennsylvania ............................................................. 15
Rhode Island ............................................................. 1
Tennessee................................................................ 5
Texas................................................................... 30
Utah . .................................................................. 3
Virginia ................................................................. 13
Washington .............................................................. 5
Wisconsin ............................................................... 4
Total . .................................................................. 305
dsw.com
In fiscal 2008, we launched dsw.com to provide customers with the opportunity to purchase shoes and related
accessories through our website and to gain market share by serving customers in areas where we do not currently
have stores. We entered into a ten-year lease agreement for space to serve as a fulfillment center for dsw.com. We
operate a call center to address our customer service needs in support of both DSW stores and dsw.com.
Leased Departments
We also operate leased departments for four retailers. We have renewable supply agreements to merchandise
the shoe departments in Stein Mart, Inc., Gordman’s, Inc., Filene’s Basement and Frugal Fannie’s Fashion
Warehouse stores through December 2012, January 2013, January 2013 and April 2012, respectively. Filene’s
Basement stores have been operated by a subsidiary of Syms Corp (“Syms”) since its purchase of 23 Filene’s
Basement stores in June 2009. We own the merchandise and the fixtures (except for Filene’s Basement, where we
only own the merchandise), record sales of merchandise net of returns and sales tax and provide management
oversight. Our leased business partners provide the sales associates and retail space. We pay a percentage of net
sales as rent. As of January 30, 2010, we supplied merchandise to 266 Stein Mart stores, 66 Gordmans stores, 23
Filene’s Basement stores and one Frugal Fannie’s store.
Merchandise Suppliers and Mix
We believe we have good relationships with our vendors. We purchase merchandise directly from more than
400 domestic and foreign vendors. Our vendors include suppliers who either manufacture their own merchandise or
supply merchandise manufactured by others, or both. Most of our domestic vendors import a large portion of their
merchandise from abroad. We have implemented quality control programs under which our DSW buyers are
involved in establishing standards for quality and fit and our store personnel examine incoming merchandise in
regards to color, material and overall quality of manufacturing. As the number of DSW locations increase and our
sales volumes grow, we believe there will continue to be adequate sources available to acquire a sufficient supply of
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