U.S.-based owner of Town Shoes to close all 38 stores in Canada by January
About 400 workers employed by Town Shoes are expected to be affected by the closures
The Canadian Press ·
Canadian shoe lovers will soon have one less spot to snatch up footwear and experts say its a symptom of changing consumer behaviour.
Ohio-based shoe brand DSW Inc. said it will shutter its Town Shoes Ltd. brand and close all 38 of its stores, which operated solely in Canada, by the end of the company's financial year in January.
DSW Inc. spokesperson Margaret Standing said the decision was made after the company undertook a 90-day review to look at Town Shoes' historical performance, competitive positioning and future requirements.
Difficult decision
"The decision to exit the Town banner was a difficult decision to make, given its heritage," she told The Canadian Press in an email.
"Unfortunately, as the competitive landscape for mid-luxury, mall-based footwear has dramatically changed, comparable sales have deteriorated consistently and generated significant operating losses."
Tamara Szames, a fashion industry analyst with research company NPD Group, said "off-price" and luxury apparel retailers are both exceeding growth expectations, but businesses in the middle, like Town Shoes, are being challenged.
"When we look at the retailers that have closed down over the last 24 months, it is really those in the middle," she said.
"With e-commerce really driving growth, we have started to see more brick-and-mortar stores close to align with consumer demand."
Town Shoes minority stake bought by U.S. chain DSW
Only 15 per cent of shoe sales in Canada are done via online channels, trailing the U.S., where 25 per cent of footwear purchases are done through e-commerce, Szames said.
She's expecting to see a "dynamic shift" in the near future, as Canada's online footwear sales grow at twice the speed of the U.S.
She's also predicting the closure of retailers like Town Shoes will continue to add to the changing face of malls, which have already been grappling with how to fill spaces left vacant by the recent Canadian closures of Sears and Target.
The closures have forced many malls to turn to condo developments, health-care offices, restaurants and gyms to fill vacant properties.
The Town Shoes closure will only bring more room to fill because its stores, which average 232 square metres (2,500 square feet), have long been a staple at Canadian malls.
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https://www.cbc.ca/news/business/dsw...nada-1.4803058