Case Study: DSW (Designer Shoe Warehouse) reduces stock-outs and markdowns and boosts margins with SAS Size Optimization

DSW gets the right fit with SAS® Size Optimization

DSW (Designer Shoe Warehouse), the U.S. shoe chain with 363 stores and 344 department locations, was losing sales and profit because stores were stocked using a national average size profile that didn’t match local demand. Seasonal swings, overseas suppliers and rapid growth made it harder to keep the right sizes on shelves, leading to stock-outs in some stores and markdowns in others despite a large loyalty base that drives most revenue.

DSW implemented SAS® Size Optimization (Size Profiling and Pack Optimization), which uses “true demand” calculations to infer unmet demand and recommend store-specific size packs. Trials showed SAS was more accurate than alternatives, deployment was smooth, and 90% of suppliers adopted the new packs — resulting in fewer out-of-stocks and markdowns, higher margins and improved customer satisfaction.

DSW

Harris Mustafa

Executive Vice President, Supply Chain