DSW’s focus on kids category
On July 17, footwear retailer, DSW (DSW) announced that it has concluded the rollout of DSW Kids to its entire store base. Under the category, the company has been stocking athletic and fashion footwear from a wide range of brands for infants, toddlers, and pre-teens.
DSW stock rose 1.4% to $27.07 on July 17. The stock has risen 26.4% year-to-date. In comparison, the S&P 500 Index has risen 5.1%.
DSW has been impacted by competition from online retailers and has conducted intense promotions to counter it. It’s taking numerous measures to grow in this environment. It’s overhauling its merchandise assortment, revamping its stores, investing in technology, and improving its loyalty rewards program. It’s focused on the children’s footwear space as it looks for newer revenue streams. The company believes that if it wants its customers to keep coming back throughout their lives, stocking up on kids footwear is one way to do it.
In time for back-to-school season
DSW expects its kids category rollout to benefit from the back-to-school season, which runs from mid-July through mid-September. For retailers, it’s the second-most crucial shopping season after the holiday season. During this period, parents purchase school supplies, electronics, clothes, and shoes.
To make the most of the season, DSW has deployed True Fit online technology to provide size recommendations for kids. Customers who are members of the DSW VIP Rewards Program also get 50 reward points for each pair of old shoes they donate.
According to an NRF (National Retail Federation) survey, back-to-school spending in 2018 for elementary through high school students is expected to reach $27.5 billion. Most of the spending will most likely be on clothing, followed by electronics, footwear, and school supplies. The survey also showed that back-to-college spending is expected to be $55.3 billion in 2018. College students will most likely spend the most on electronics, followed by clothes and accessories.