Roger Rawlings, CEO
DSW Inc.
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FOR IMMEDIATE RELEASE
DSW to buy online footwear and accessories retailer, Ebuys
DSW Inc. a renowned accessories and footwear company has announced that it intends to buy Ebuys, a footwear and accessories retailer. The move will bolster the company’s growing online sales capabilities and underline its reputation as one of the leading footwear and accessories retailers in the United States. The move will also give DSW Inc. an important online footprint that is important in the currently technological age (Faran, 2016).
According to Rawlings, the company’s C.E.O., “The move is a unique opportunity to add a business to the DSW Inc. portfolio.” On the other hand, Lee Peterson, the chief executive at WD Partners, a retailing corporation based in Dublin, suggests that consumers are bound to see such moves in the near future. Furthermore, Peterson argues that “online is key.” He also suggests that “Rawlins, who has been deeply involved in DSW’s online operations, should know more about it that any other person” (Faran, 2016).
Specifically, the purchase will include an upfront payment of about $62.5 million and future payments that will be based on Ebuys’s performance. The two companies expect to finalise the transactions in the next thirty days. After the purchase is finalised, Ebuys will continue to function as a distinctive business within DSW. Furthermore, it will maintain its offices in California, San Diego, and Tennessee (Faran, 2016). Additionally, Ebuys CEO, David Duong will be the company’s executive leader. Roger Rawlins maintains that the acquisition of Ebuys will bolster DSW’S off-price sourcing capability, expand its presence in the digital marketplace, and create an important opportunity for the company to serve customers from various regions of the globe (Faran, 2016).
Indeed, the digital marketplace has become a crucial and important segment for all organizations that seek to increase their market shares and improve sales. With the proliferation of the internet and the increasing use of the internet, companies must have an online presence to survive in increasingly competitive industries. When Rawlins took charge of DSW’s online operations, it was making losses and losing huge sums of money. However, within two years, Rawlins transformed the online operations and they started contributing significant sales to the company. In 2013, Roger was put in charge of the company’s multilayer omni-channel roadmap, and in 2014, he was tasked with implementing the plan. Therefore, DSW’s decision to purchase Ebuys will definitely bolster its online strategy (Faran, 2016). Some of the benefits that will accrue from the move include:
Ability to access global markets
less wastage of packaging materials
Advantage of managing the business from various locations
Increased flexibility that will improve customer service
DSW established its first store in June 1991 in Dublin Ohio. The company sells an assortment of handbags, shoes, and other accessories for women and men. The company has optimised its operations through partnerships and buyouts (Faran, 2016). On the other hand, Ebuys was established in 2003, in San Diego, as an e-commerce retailer that focuses on selling branded off-price accessories and footwear in Europe, North America, Asia, and Australia. Specifically, the company operates other e-commerce platforms under the ApparelSave and ShowMetro brands. Therefore, it is an invaluable addition to DSW’s online business segment. As a result of the news, the value of DSW’s shares increased by about 5.64% (Faran, 2016).
References
Faran, T. (2016). DSW to buy online footwear, accessories retailer Ebuys. Retrieved February 29, 2916, from <http://www.dispatch.com/content/stories/business/2016/02/17/0217-dsw-to-buy- online-footwear-retailer-ebuys.html>
