R E T A I L

DSW's new prototype store features a New York loft-style feel with wood fixtures.

DSW Expands its Presence Throughout Virginia

RICHMOND, VIRGINIA — In fall 2006, Divaris Real Estate, Inc. (DRE) began is tenant representation assignment for Designer Shoe Warehouse (DSW) covering the Commonwealth of Virginia. The Virginia Beach office is handling the account for the southeastern portions of the state, while the Richmond office is charged with covering central and western Virginia.

Since opening in Dublin, Ohio in 1991, DSW has expanded across the country, offering high-quality brand name shoes and in-season fashions at competitive prices compared to what would be found at specialty shoe stores and department stores.

“There’s really no limitation to where we’re looking to grow, both in Virginia and nationwide,” says Burke, director of real estate for DSW. “Where there is a solid population base with high incomes, where we do not have a store, is a place we’ll look to locate.” DSW currently operates 227 locations nationwide. Each store offers more than 30,000 shoes, in 2,000 styles.

With its self-service format, the shopping experience at DSW is unique. “The way we differentiate ourselves from the competition [particularly Nordstrom and Macy’s, the only two larger sellers of brand name footwear in the U.S.] is through our self-service model,” says Burke. “Our customers like to know there is brand name quality and value throughout our stores, and the enormous selection is there, waiting at every location. In our model, a customer can look at shoes according to her schedule without having to wait for a sales associate to bring out every pair. As a result, the average time for a customer in our stores is 40 to 45 minutes, which is relatively lengthy.”

In the last ten months, DSW has implemented an exciting new, smaller store design that is being marketed in Virginia and throughout the country, explains Brett Womack, senior vice president in DRE’s Richmond office. Womack handles the DSW account with Debbie Wake, senior vice president of retail for DRE in the Richmond office. DSW has opened the first of this new format at Easton Town Center in Columbus, Ohio. It will serve as the future prototype for DSW stores.

In general, DSW’s store sizes can be as large as 25,000 square feet, but in the Richmond market, Womack says, they are keeping their concepts in the 14,000- to 15,000-square-foot range. The new prototypes feature bright lights, wood fixtures, and an accessories wall with an elegant furniture package -- all departures from the original model.

“The new models are more efficient and a lot more appealing; aesthetically. It has more of a New York loft-style feel, as opposed to the former warehouse ambience, and the fixture package is a far cry from what it had been in the past,” says Burke. “A couple things made the new design possible, including the fact that we increased our deliveries from one day a week to three or four times a week, allowing us to reduce the store size nearly in half.”

Currently, Mary McGovern, senior vice president of retail and Sezin Cortinas, retail sales and leasing associate in DRE’s Virginia Beach office, are helping DSW to expand in the Hampton Roads market. And, with two stores already in the Richmond market, Wake and Womack are working to identify three or four additional locations in that area to open by early 2008.

“Though the stores are destinations unto themselves, they like to locate in shopping centers with good fashion components,” says Womack.