DSW 2009 Annual Report Download - page 13

quality goods in a timely manner and on satisfactory economic terms. During fiscal 2009, 2008 and 2007,
merchandise supplied by our top three vendors accounted for approximately 21%, 20% and 21% of our net footwear
sales.
We separate our DSW merchandise into four primary categories — women’s footwear; men’s footwear;
athletic footwear; and accessories. While shoes are the main focus of DSW, we also offer a complementary
assortment of handbags, hosiery and other accessories. The following table sets forth the approximate percentage of
our sales attributable to each merchandise category for the fiscal years below:
Category Fiscal 2009 Fiscal 2008 Fiscal 2007
Women’s ........................................ 66% 66% 65%
Men’s ........................................... 15% 15% 16%
Athletic ......................................... 13% 14% 14%
Accessories and Other............................... 6% 5% 5%
Distribution
Our primary distribution center is located in an approximately 700,000 square foot facility in Columbus, Ohio.
The design of the distribution center facilitates the prompt delivery of priority purchases and fast-selling footwear
so we can take full advantage of each selling season. To further ensure prompt delivery, we engage a third party
logistics service provider to receive orders originating from suppliers on the West Coast and some imports entering
at a West Coast port of entry through our West Coast bypass. Shipments are shipped either from our West Coast
bypass or our primary distribution center to our pool points and on to stores. We continue to evaluate expansion of
the bypass process for applicability in other parts of the country. We also have a fulfillment center in Columbus,
Ohio to process orders for dsw.com, which are shipped directly to customers using a third party shipping provider.
Competition
We view our primary competitors to be department stores and brand-oriented discounters. However, the
fragmented shoe market means we face competition from many sources. We also compete with mall-based shoe
stores, national chains, independent shoe retailers, single-brand specialty retailers, online shoe retailers and multi-
channel specialty retailers. We believe shoppers prefer our breathtaking assortment, irresistible value and con-
venience. Many of our competitors generally offer a more limited assortment at higher initial prices in a less
convenient format than DSW and without the benefits of the “DSW Rewards” program. In addition, we believe that
we successfully compete against retailers who have attempted to duplicate our format because they typically offer
assortments with fewer recognizable brands and more styles from prior seasons, unlike DSW’s current on-trend
merchandise.
Intellectual Property
We have registered a number of trademarks and service marks in the United States and internationally,
including DSW»and DSW Shoe Warehouse». The renewal dates for these U.S. trademarks are April 25, 2015 and
May 23, 2015, respectively. We believe that our trademarks and service marks, especially those related to the DSW
concept, have significant value and are important to building our name recognition. To protect our brand identity,
we have also protected the DSW trademark in several foreign countries.
We also hold patents related to our unique store fixture, which gives us greater efficiency in stocking and
operating those stores that currently have the fixture. We aggressively protect our patented fixture designs, as well
as our packaging, store design elements, marketing slogans and graphics.
Associates
As of January 30, 2010, we employed approximately 10,000 associates. None of our associates are covered by
any collective bargaining agreements. We offer competitive wages, comprehensive medical and dental insurance,
vision care, company-paid and supplemental life insurance programs, associate-paid long-term and short-term
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