News

DSW buys stake in Canadian shoe retailer

BY Staff Writer

New York — DSW has closed on its acquisition of Town Shoes Limited, the largest footwear and accessories retailer in Canada, for $68.7 million in cash. DSW acquired a 49.2% interest in Town Shoes from certain clients of Alberta Investment Management Corporation (AIMCo) and other minority shareholders.

DSW’s initial stake provides 50% voting control and board representation equal to the primary remaining shareholder, Callisto Capital. Peter J. Solomon Company served as financial advisor to DSW Inc.

Town Shoes is the market leader in branded footwear in Canada, with sales of CAD $291 million in its fiscal year ending Jan. Town operates 182 locations across Canada primarily under The Shoe Company, Shoe Warehouse and Town Shoes banners. The company is predominantly owned by Alberta Investment Management Corporation on behalf of certain of its clients, and Callisto Capital, a Canadian private equity firm.

"We’re excited about our new relationship with Town Shoes,” said Mike MacDonald, president and CEO, DSW, when the company announced its intention to acquire the Canadian shoe retailer. “We have looked at Canadian entry options for some time and decided to acquire an existing operation with a long track record of success and to use this operation as a base from which we can establish the DSW brand in Canada."

Bruce Dinan, president and CEO, Town Shoes added that the combined retail banners provide different avenues for serving unique customer lifestyles in Canada, ranging from Town’s full priced, specialty retail model to The Shoe Company’s and Shoe Warehouse’s off price concepts.

DSW plans to release its first quarter earnings results Wednesday, May 28, before the market opens.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

Polls

Are you hiring seasonal employees this year?

View Results

Loading ... Loading ...
News

First Data: Easter, weather boost consumer spending in April

BY Dan Berthiaume

Atlanta – Consumer year-over-year spending growth of 4.1% gained momentum in April 2014 compared to the prior month’s growth of 3.1%, driven by warmer weather as well as the Easter shift into April this year, according to First Data SpendTrend analysis. The report, which tracks same-store point-of-sale data by credit, signature debit, PIN debit, EBT, closed-loop prepaid cards and checks from nearly four million merchant locations serviced by First Data, shows transaction growth of 3.5% in April, compared to March’s 2.7% growth.

Higher gas prices, an uptick in job creation and a lift in consumer confidence also supported the growth. Gas station spending growth of 3.3% marked the highest growth since July 2013 as gas prices eclipsed the prior year’s levels. Retail spending growth and transaction growth of 1.3% and 2.4% gained traction compared to March’s growth of -0.5% and -1.2%, as the Easter shift pushed holiday retail purchases and related foot traffic into April.

Spending growth at clothing & accessories, stores and health & personal care stores of 1.2% and 0.2%, respectively, spiked compared to the previous month’s growth of -5.0% and -2.4% as shoppers visited these merchants for candy, Easter-themed toys and spring apparel. Dollar volume growth of 3.6% at building material & supply stores slowed slightly from the previous month’s growth of 4.3% but remained healthy as higher temperatures encouraged spending on garden, home construction and outdoor items.

Average ticket growth of 0.5% was up compared to March’s growth of 0.3%, the strongest growth in the past 12 months, driven by an increase in gas and food costs. Gas station average ticket growth was 0.4% vs. -4.1% last month, the highest growth in nine months. Average ticket growth of 1.8% was seen in food & beverage stores, the highest growth in more than a year.

Looking at different methods of payment, credit card dollar volume rose 4.3%, signature debit volume rose 4.5%, PIN debit volume grew 4.1%, prepaid card volume increased 6.9%, and check volume dropped 2.7%.

“Overall spending growth was strong and gained momentum over March as the Easter shift into April and the return of warmer weather encouraged consumers to get out and shop,” said Krish Mantripragada, senior VP, information and analytics solutions, First Data. “Consumer confidence and job creation also bounced back, which put consumers in the mood to release their pent-up demand from the extended winter. We also saw debit spending growth continue to rise, due in large part to higher tax refund values and volumes through April.”

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

Polls

Are you hiring seasonal employees this year?

View Results

Loading ... Loading ...
News

Tuesday Morning reports strong Q3 results

BY Vivian Lee

Tuesday Morning Corporation’s turnaround efforts paid off in the third quarter ended March 31. The company reported strong comparable store sales performance, increased inventory turnover and improved cash position during the quarter.

The leading closeout retailer that operates 811 stores across the U.S. reported net sales of $182.8 million, an increase of 2.6% compared to $178.1 million for the third quarter of fiscal 2013.

Comparable-store sales increased 6.4% compared to the third quarter of fiscal 2013, and consisted of an 8.4% increase in customer transactions, which was partially offset by a 1.9% decrease in average ticket. Since the last year’s second quarter, the company has exited a number of non-core categories such as women’s apparel and footwear. Comparable sales in ongoing core categories increased 10.5% compared to the third quarter last year.

"During the third quarter we commenced work on the final phase of the company’s turnaround efforts which includes the sell-off of exited categories, further reduction of our clearance merchandise and enhancements to our store layouts,” said CEO Michael Rouleau. “We are pleased with our continued progress and results this quarter, yet remain focused on the significant work ahead to complete the final phase of our turnaround efforts before the holiday selling season."

Tuesday Morning specializes in selling deeply discounted, upscale decorative home accessories, housewares, seasonal goods and famous-maker gifts

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

Polls

Are you hiring seasonal employees this year?

View Results

Loading ... Loading ...