DSW
#This is <UNK>.
What I would say is, we took the opportunity with our expense initiative to look at all dollars going out of the business, that included capital dollars.
And one of the things that we found was that demand management on, when we ---+ when a store might call in, and ask for a carpet refresh or something like that, demand management is an area we've got lots of improvement in.
And we think that there is an opportunity there to be a little more judicious with the dollars going out, and not necessarily having to respond with 100% kind of SWAT team with every type of request.
So that's a big piece of where that's coming from.
<UNK>, I would tell you, I think the other opportunity we have is, in the past three years we have invested a lot in our IT space for tools and technology.
And as a team, as we step back and look at how effectively we're using the tools that have been built, we're not optimizing the things that have been built.
And so, as an organization, we keep talking about focus, focus, focus.
Let's leverage the things that have been built.
Let's see that they're driving the kind of value that we wanted, before we start moving on to building the next thing.
So whether that be in the omni space, whether that be in the digital space, there are some things there, where we know we can be more effective with the tools we've already built, before we start marching toward what's next.
So that's a big chunk of what was that pullback in capital.
I'm sorry, <UNK>, you cut out in the middle of that question.
I couldn't, are you asking how much would be digital versus store.
Is that what.
Yes, we ---+ <UNK>, we don't get into that detail.
We'll tell you again, out of the gate, we're happy with the results we have seen, but we don't want to share that kind of information at this point.
For the second quarter, merch margin was down in the low single-digits, driven primarily with a decrease in IMU.
But a big piece of the IMU was related to Ebuys operating at a very different model than ours does.
So organic or anything not Ebuys was much more modest, but merch margin came in, in the low single-digits.
Yes.
So <UNK>, we mentioned this last quarter too, that we're actually, we're happy with the results we're getting.
What we want to do is to build an experience in those stores, that can display the breadth of assortment that Designer Shoe Warehouse offers to the customer.
And we're working to solve that through some new fixturing and other things.
The piece of data that I'm really excited about is that, our team shared with us yesterday some of the results of ---+ we call it [charts in].
But the ability for those stores to act as a fulfillment center in that local market.
And we're seeing double-digit percents of their total sales coming from digital demand meaning ---+ and orders being placed in that small market, and it's being fulfilled by that store.
So again, it's just one more reason why we believe there is something there.
We're going to continue to work on it, until we can nail it, and it actually either looks like Designer Shoe Warehouse in a small market, or it's got a different banner, or whatever it might be.
There is an opportunity for us to be in those markets.
We've got to figure it out, and we're working on that.
Hi, <UNK>.
The breakout of the $25 million really was across three different kind of buckets I would call it.
So we had reorganizational alignments, where we looked across the business and tried to find where there were opportunities to increase efficiency in the way we work.
So we're seeing roughly around half of that $25 million coming from that organizational realignment.
The other two buckets, about evenly split are amongst how we buy things, non-merchandise for resale items, but services and products that we use here and in our stores.
Buying that better and more strategically, trying to leverage scale, trying to make sure that we are always bidding things out in a strategic way.
So, better buying.
And then some infrastructure changes that either just are changing, because we've evolved the model, or we are looking at how we operate certain parts of the business.
So amongst that, it's kind of how we break it out.
From a timing standpoint, we aren't prepared to talk about 2017 at this point.
What I would say is, it's probably going to come across pretty evenly, again given half of it was organizational realignment.
That's a pretty even across the year save.
So again, we're not ready to talk about 2017's guidance, but I think it's fair to say, it should be relatively even across there.
Was there a last ---+ oh, and then to answer your question about, are we reinvesting the $25 million.
Right now again, we are not commenting on 2017, but I think you'll see the vast bulk of this materialize in SG&A savings in 2017, not looking for reinvestment.
And so, thanks everyone for your interest and support of DSW, and we look forward to reporting progress on the third quarter earnings call.
Thank you.
