Full omnichannel capability will allow it to move seamlessly between channels and will allow DSW to make its full assortment available to the customer regardless of whether she's shopping from her house, from her mobile device or from a store. Having this capability will make the small format store strategy even more powerful.

Today, the store and DSW.com businesses are operated separately, causing the need to break down systemic, organizational and process barriers that separate these channels. "It will require a significant commitment of resources by our organization," said DSW CEO Michael MacDonald on a recent call with analysts. "But we believe our omnichannel capability will make us an even more formidable competitor in the footwear space. Over the past several months, we've been working with two consulting firms to help us validate our omnichannel plan to develop business cases for each element of the plan and to develop a timetable for implementing the plan. We expect to complete that work by the end of the year."

The most important step in DSW's omnichannel journey has already been taken with the launch of charge-send capability. This system allows the retailer to fulfill dotcom orders out of stores and to satisfy unmet store demand from stock held in other stores.

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