U.S. discount footwear giant DSW Designer Shoe Warehouse is opening its first store in B.C., setting up shop in Saanich in the former Michaels arts and crafts location.
DSW is bringing a new shoe retailing model to the capital region. It typically operates big-box stores averaging 22,000 square feet. Each of its outlets carries about 24,000 pairs of shoes, according to its website. It operates about 430 stores in the U.S. and has another 370 leased operations within other retailers. A DSW spokesperson could not be reached Thursday, but a person with local knowledge of the matter confirmed the company is taking the Saanich location.
Dates for starting site improvements and an opening were not disclosed.
DSW, a publicly traded company, is making its mark in Canada after a partnership with Toronto-based Town Shoes Ltd. The Canadian company has about 200 locations under Town Shoes, DSW and its other brands — The Shoe Company, Shoe Warehouse and Sterling, which are already operating here.
DSW opened its first two stores in August 2014 in Mississauga and Newmarket, Ont. It is also rolling out locations soon in Whitby, Ont., Edmonton and Calgary.
Local businesses have heard the Saanich store will open this fall.
Michaels vacated its space in the Island Home Centre at Blanshard Street and Cloverdale Avenue this month for a 24,600-square-foot space on the upper level of Uptown formerly occupied by electronics retailer Best Buy.
The Island Home Centre’s other tenants include HomeSense, Staples and Sport Chek.
DSW carries brands such as Nine West, Guess, Steve Madden, Vans and Skechers.
Kerstin Greiner, owner of Footloose Shoes on Fort Street downtown for more than three decades, said the arrival of a big-box competitor is always a concern, but said she relies on loyal clientele and unique products to compete.
Greiner said Footloose carries lines not available in other stores and chooses high-quality brands, including leather shoes from Spain and Italy, and products free of toxic glues.
DSW’s fourth quarter results released Tuesday, reported sales up 12 per cent to $640 million from the previous period. The latest quarter delivered the strongest performance in almost three years, said Mike MacDonald, president and CEO.
It is among several American retailers making moves in Canada.
Target blasted into the Canadian retail landscape less than two years ago, but flopped in a spectacular way, losing more than $4 billion. It is closing all 133 stores in this country.
Nordstrom, another U.S. retailer, is taking a more measured approach. It has two stores open, in Calgary and Ottawa. Its Pacific Centre store in Vancouver opens this fall. Three more will open in 2016 and 2017 in Toronto.
Vancouver-based retail consultant David Ian Gray said Canada’s retail economy has turned the corner in the last two years. Supply is meeting demand, meaning that newcomers will be competing with established businesses.
In the capital region, DSW will be going up against other budget-priced stores such as Payless ShoeSource, Winners, and Marshalls, Gray said. It will likely particularly appeal to families on budgets and younger shoppers.
He cautioned all retailers to look past the local community when thinking about the future of their business. “You need to take on some of the aspects of world-class retailing.”
This could mean having a well-integrated website, improving logistics and streamlining operations to be cost-competitive or concentrating on customer experience, he said. “You’ve got to be relentlessly getting better.”
Local retailers have an advantage because they can respond to the market in ways that a national brand can’t, he said.
