DSW Inc. is staking out a bigger space on the e-commerce landscape.
The footwear retailer said it inked a deal to acquire off price shoe e-tailer Ebuys for $62.5 million. Ebuys is the parent company to sites ShoeMetro and ApparelSave.
While DSW maintains an e-commerce flagship at dsw.com, Roger Rawlins, chief executive officer of DSW, said Ebuys will help scale the company’s off-price sourcing capabilities and lend a hand in serving a growing international customer online.
Ebuys will remain a stand-alone company under the DSW umbrella, led by ceo David Duong. The business will continue to be headquartered in San Diego, Calif., and Antioch, Tenn.
DSW posted what it described as “disappointing” results for the third quarter with lower sales and profits, but has been working on implementing a series of omnichannel initiatives. These included buy-online; pick-up in-store; and buy-online, ship-to-store programs — attempts to blur the lines of traditional retail and e-commerce by allowing customers to collect their purchases in the way that’s most convenient for them.
Investors approved of the company’s move to dig in digitally and pushed the stock 5.9 percent higher to $25.
DSW has 469 stories spanning 42 states, and supplies shoes to almost 400 doors in the U.S. A spokesperson told WWD that more details will be added during the company’s earnings call next month.