DSW 2013 Annual Report Download - page 9

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Table of Contents
As of February 1, 2014, we operated 394 DSW stores in 42 states, the District of Columbia and Puerto Rico. The following table shows the number of our
DSW stores by state and territory:
Alabama 4
Louisiana 4
Ohio 17
Arizona 8
Maine 1
Oklahoma 3
Arkansas 1
Maryland 14
Oregon 4
California 38
Massachusetts 15
Pennsylvania 19
Colorado 11
Michigan 17
Puerto Rico 1
Connecticut 7
Minnesota 10
Rhode Island 2
Delaware 1
Mississippi 1
South Carolina 2
Florida 26
Missouri 5
Tennessee 6
Georgia 14
Nebraska 2
Texas 34
Idaho 1
Nevada 3
Utah 2
Illinois 21
New Hampshire 2
Virginia 15
Indiana 9
North Dakota 1
Washington 7
Iowa 1
New Jersey 16
District of Columbia 2
Kansas 2
New York 28
Wisconsin 6
Kentucky 3
North Carolina 8
Total 394
We also serve customers through dsw.com in areas where we do not currently operate stores and offer current customers additional styles, sizes, widths and
categories not available in their local store. We continue to focus on the growth of dsw.com by improving site navigation, offering a wish list capability to our
DSW Rewards members and reaching our customers through social media.
In our Affiliated Business Group, we continue to refine our merchandise assortment to best meet the needs of our affiliated business customers. In October
2013, we began supplying merchandise to Stein Mart's e-commerce website. We actively pursue opportunities for new affiliated business partners.
Driving Sales through Enhanced Merchandising
Our merchandising group continuously 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 performance and sales trends on a weekly basis and have a flexible buying process that allows us to reorder
successful styles and cancel underperforming styles 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 and category opportunities. In
fiscal 2014, we will offer jewelry in all DSW stores. We will continue investments in planning and distribution systems to improve our inventory and
markdown management.
Investment in Our Infrastructure
As we grow our business, we believe we will improve our profitability and operating performance by leveraging our support functions and cost structure
across all overhead functions. Most significantly, we believe continued investment in systems will enhance our operating efficiency in areas such as supply
chain (merchandise planning and allocation, inventory management and distribution) and labor management.
Over the past few years, we completed system investments in our supply chain to support size replenishment and size optimization initiatives to enhance our
markdown management. Size replenishment focuses on replenishing core styles at a size level; size optimization allows us to effectively allocate sizes by store.
In fiscal 2014, we plan to continue system investments in our supply chain to support assortment planning. Assortment planning will allow us to localize
assortments based on local customer profiles rather than just on store volume. Also, we launched our charge-send system to enable us to fulfill unmet demand
originating from either dsw.com or DSW stores from inventory that is located in other stores rather than only from our inventory in the fulfillment center or the
customer's home store.
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 facility. Merchandise is transported either from our West Coast facility or our primary distribution center to our
5
Source: DSW Inc., 10-K, March 27, 2014 Powered by Morningstar® Document Research℠
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