DSW Inc. is making major moves to grow its e-commerce business.
The Columbus, Ohio-based off-price footwear retailer announced Wednesday that it is set to acquire Ebuys Inc., an e-commerce off-price footwear and accessories retailer with a presence in North America, Europe, Australia and Asia.
The transaction is expected to close within the next 30 days, and DSW will shell out $62.5 million upfront as well as future payments contingent on the performance of Ebuys.
DSW, which has been aggressively focused on its omnichannel strategy lately, credited the implementation of its “Buy Online Pick-up in Store” and “Buy Online Ship to Store” programs with helping to buffer slipping sales and profits in Q3.
Then-CEO Mike MacDonald — who announced his retirement in Nov. 2015 and named then-CIO and EVP Roger Rawlins as his replacement — said the firm would be relying heavily on omnichannel in 2016 as it seeks to drive top-line growth.
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“The acquisition of Ebuys represents a unique opportunity to add a business to the DSW portfolio that will strategically scale our off-price sourcing capabilities, expand our presence into digital marketplaces and create opportunities to serve international customers online,” said CEO Rawlins in a release. “As CEO of Ebuys, David Duong has built a strong leadership team and developed an excellent off-price e-commerce model that complements DSW’s growth strategy. Together, we will serve our combined customer base better and achieve our long-term growth goals.”
According to DSW, Ebuys will continue to operate as a separate business within DSW and maintain its offices in San Diego and Antioch, Tenn., while Duong continues as CEO of Ebuys.
“I admire the DSW team and the depth of resources DSW has developed over the years,” Duong said in a release. “We’re excited to be part of DSW and we are confident the new relationship will accelerate our growth and provide significant benefits to our customers, vendors and employees.”
DSW is scheduled to report Q4 earnings on March 15.