DSW profit soars in Q1
Columbus, Ohio Retail Ventures announced that net sales at DSW for the first quarter ended May 1 increased 16.5% to $449.5 million, from $385.8 million from the same period the year before.
DSW’s first-quarter net income surged to $30.2 million from $7.1 million last year.
Meanwhile, same-store sales increased 16.2% versus a decrease of 4.7% last year.
Retail Ventures is a holding company whose subsidiary, DSW, is a leading United States branded footwear specialty retailer operating, as of May 1, 311 shoe stores in 39 states.
DSW also supplies shoes, under supply agreements, to 354 locations and operates dsw.com.
International is 4th growth priority
Target will operate stores internationally — some day — but for the time being the company contends it has such ample opportunities domestically that its growth efforts remain focused on American soil for at least the next three years. According to president and CEO Gregg Steinhafel, the company’s top priority is transforming its existing store base to the P-Fresh format, which features fresh food and other category upgrades. In addition, the company intends to continuing opening new U.S. stores in trade areas that make sense for the company’s existing formats. A third priority is to develop a smaller prototype that enables the company to take advantage of more urban opportunities that have great demographics. “We’re looking at downsizing Target to fit the environment where there are guests that have lots of money and love Target, so we’re focused on that as our third priority and then international would come well beyond that,” Steinhafel said.
Using ketchup to capture sales
Combine tomatoes, vinegar, high-fructose corn syrup and salt and what do you get? Ketchup, of course, but also the makings of an early-summer pricing battle involving a staple of summer cookouts. Target featured a 40-ounce squeeze bottle of Heinz brand ketchup in its circular this week for $1.59. That’s quite an aggressive price and would have been a good deal for shoppers except for the fact that Walmart decided it needed to reassert its pricing image and would use the Heinz brand to do so. As a result, Walmart marked down the 40-ounce Heinz to just $1 from its regular price of $2.42, as part of its price rollback campaign touted in promotional materials as involving, “thousands of rollbacks throughout the store.” Fortunately for margins at Target, as well as Walmart, most of the items featured in the rollback program are not subject to such extreme reductions.