While DSW, a leading branded footwear and accessories retailer, took a slight step backward, fiscally speaking, during the third quarter, CEO Michael MacDonald is confident that the company has the strategic customer engagement/customer experience plan in place to boost future sales.
“We are excited with the launch of our biggest holiday campaign ever, which promises customers DSW’s unbeatable values, special brand events, and the largest assortment of boots and gift-giving ideas,” MacDonald said during the Nov. 24 third-quarter earnings conference call, according to Seeking Alpha. “We are backing this campaign with national advertising and compelling direct marketing messages. In addition, with the expansion of our omnichannel capabilities, we will provide customers with additional ways to make holiday shopping incredibly convenient at DSW.”
In the long term, MacDonald is confident that DSW has the right plan in place and is well positioned to meet the shifting needs of its customers.
“An important part of that plan is our omnichannel strategy, the goal of which is to make our entire assortment available to our customers in a seamless fashion, regardless of how and where they choose to shop,” MacDonald explained. “One exciting new capability we implemented this quarter is Buy Online Pick-up In-Stores or BOPIS and Buy Online Ship to Store or BOSTS. We rolled these capabilities out to all stores in the third quarter. And with virtually no proactive marketing, this new program accounted for 1% of total sales in October. The customer reaction was immediate and significant, which proves how much they want and frankly expect these additional capabilities.”
Omnichannel sales, which MacDonald defines as sales that are demanded in one place and fulfilled in another, represent 5% of total sales on a year-to-date basis and comprised 6.5% in the month of October.
“This acceleration provides clear evidence that our omnichannel strategy is resonating with our customers,” he added.
What’s more, MacDonald will be succeeded by Roger Rawlins in January. Rawlins is DSW’s current Executive Vice President and Chief Innovation Officer.
“The DSW Board and I have been working on my succession plan since October 2013,” MacDonald explained. “The outcome of that process will facilitate a smooth transition of leadership to an industry veteran with deep knowledge of all aspects of DSW’s business. Roger joined DSW in 2006 as part of our finance team, and since then he has been an instrumental part of our senior leadership. In 2010, I asked Roger to take over our fledgling dsw.com operation that was losing money. Within two years, he had that business contributing very meaningful sales and profitability. In 2013, Roger led a group that developed DSW's multi-year omnichannel roadmap, and in 2014 we put him in charge of implementing that plan. Time and again, Roger has demonstrated his ability to successfully manage challenging assignments with great success. We are all thrilled that Roger has agreed to serve as DSW’s next CEO.”
Rawlins said that, in the past five years, DSW has transformed from a traditional brick-and-mortar operation into a powerful omnichannel retailer.
“I believe the investments we have and we’ll continue to make enhance our ability to compete in a fast-changing retail environment, grow market share, and expand into new markets,” Rawlins said. “I believe in our team, and together, we will focus our immediate attention on creating a stronger, more nimble and more innovative DSW, better positioned to meet the demands of our evolving customers. I look forward to working with our team and meeting many of you in the coming months. We will use the next couple of weeks to align our 2016 priorities, which we will discuss during our fourth quarter earnings call in March.”