DSW Shutters Ebuys Division
DSW Inc. announced today a plan to shutter its Ebuys division. DSW acquired the e-commerce off-price footwear and accessories company in February 2016 for $62.5 million upfront, plus additional payments. After a strategic review of the Ebuys business, DSW has chosen to liquidate all inventory and assets. It expects that process to be completed in early 2018.
Total Retail's Take: DSW is taking quick action to close its Ebuys division, an acquisition that seemingly didn't produce the incremental boost the company had hoped for. The idea for DSW when it bought Ebuys a little over two years ago was to tap into its international customer base — Ebuys at the time had a presence in Europe, Australia and Asia. However, with things not going according to plan, I credit DSW for failing fast. Better to acknowledge when something isn't working and end it than continuing to invest resources (time and money) into an unprofitable venture.