DSW Inc., an Ohio-based footwear and accessories business that operates several shoe retailers in North America, has announced that it will shutter its Town Shoes brand and all 38 Town Shoes stores in Canada by the end of January.
Despite reporting “record” sales and earnings in its most recent quarter, the company cites increasing competition in the footwear market and rising operating costs as the reasons for Town Shoes’ closure. DSW will instead focus its efforts on its three other retail banners in Canada: The Shoe Company, Shoe Warehouse, and DSW Designer Shoe Warehouse.
“After completing our strategic assessment of the Canadian marketplace, we have decided to close its smallest retail banner and focus on the three largest family footwear banners which we believe have the most potential for future growth and profitability,” Roger Rawlins, CEO of DSW, said in a news release.
DSW acquired a 100-percent stake in Town Shoes in May after initially purchasing a 49.2 percent share from minority investors in 2014. It launched Grail, a new retail concept that “celebrates sneaker culture, art, and community”, in Vancouver earlier this year.
Town Shoes was founded in Toronto in 1952, and carries a large selection of mid-range to high-end shoe labels, including New Balance, Matt & Nat, Sam Edelman, and See by Chloé. It operates six locations in Metro Vancouver: on South Granville, and at Pacific Centre, Metropolis at Metrotown, Park Royal, Coquitlam Centre, and Guildford Town Centre.