Robbie Thain
Founder, CEO
AI-generated illustrative image. Not an official campaign image.
Designer Brands is piloting a 1,000-to-1,500-square-foot shop-in-shop concept across four DSW locations. Learn how controlled physical formats impact field ops.
In fall 2026, Designer Brands is testing a new store-within-a-store concept called The Edit at DSW in four existing retail locations. The official announcement came directly from CEO Doug Howe during the company's second-quarter earnings call with analysts. Instead of updating every facility nationwide, the retailer is executing a limited physical format pilot. This controlled experiment evaluates whether a curated environment can change how shoppers engage with affordable-luxury brands in person.
The move demonstrates how retailers are adapting physical spaces to test consumer behavior safely. A focused launch allows operators to measure layout changes without overextending their operational capital. Marketers in the consumer packaged goods and beverage sectors frequently face similar constraints. Building out a physical footprint requires intense logistical coordination and structured performance tracking.
The core mechanics of the pilot are strictly logistical. Designer Brands describes the new format as an open, experiential environment that will occupy approximately 1,000 to 1,500 square feet per location. The company is using a very small subset of its existing locations for this localized test. For operational context, Designer Brands reported operating 523 DSW stores as of August 1, 2026.
The stated goal for these four locations is entirely evaluative. The retailer is running this retail-format experiment to gather concrete data before committing to a broader rollout. Financial results provide a useful backdrop for this measured approach to physical updates. Designer Brands reported second-quarter 2026 revenue of $730.6 million, which represents a 1.2% decrease year over year.
Retail-segment sales were reported at approximately $671.1 million, meaning they were down 2% in the quarter. These financial realities highlight why a limited pilot is structurally preferable to a massive permanent update. The new layout is not simply a fixture package swap. The physical environment is being actively manipulated to shape how people encounter selected brands.
Makai creates high impact experiential marketing campaigns and trade show activations that turn fleeting consumer interactions into qualified leads for premium CPG brands. We deliver carefully executed, face-to-face marketing experiences designed to capture attention and generate measurable sales pipeline. When a brand alters its physical layout, that space must function as a strictly measurable marketing channel. A dedicated shop-in-shop provides clear boundaries for product demonstrations and guided interactions.
This structured approach is highly relevant for retail marketing teams that rely on live experiences. A defined zone isolates the shopper from the chaos of an undifferentiated store aisle. JLL research reported by GlobeSt surveyed more than 1,100 U.S. consumers about their physical shopping habits. The survey found that 83% of respondents said they enjoy finding products they would not have searched for online.
However, the same report noted that 72% had left a store early because the environment felt overwhelming. Experiential design must therefore balance sensory stimulation with clear navigability. We specialize in creating retail demos, product sampling programs, and roadshows that bring brands face to face with their audiences. Each program is designed to drive trial, build consumer relationships, and accelerate retail velocity across multiple locations.
Brands cannot simply build beautiful environments and expect Return on Investment to materialize automatically. Experiential marketers must track behavioral signals like foot traffic alongside commercial signals like retail conversion. Using a controlled space allows operators to figure out what actually prompts a purchase. We help marketing leaders apply this exact framework when planning how to test and optimize a trade show activation before launch.
A shift in retail footprint triggers a chain reaction across field operations. Introducing a 1,500-square-foot experiential zone immediately changes staffing requirements. Ambassadors working inside the designated area need different training than general floor staff. They must know how to facilitate interactions, explain the assortment, and capture valuable engagement data.
If staff cannot maintain presentation standards, the physical space will fail to convert interest into pipeline. JLL also reported that 83% of retail sales still occur in stores. Furthermore, 60% of surveyed shoppers said a store’s environment affects whether they would recommend it to someone else. The stakes for ground-level execution are incredibly high.
Marketing directors must separate general store traffic from engagement happening specifically inside the pilot zone. Teams need to compare the performance of pilot stores against similar non-pilot locations. Otherwise, they risk mistaking seasonal demand for a direct result of the physical activation. Operational reporting must track inventory availability, interaction quality, and exact sell-through figures.
A VP of Marketing recently reflected on our partnership: "Robbie, it was a pleasure working with you and your team. You turned our launch into an experience that connected with shoppers and built lasting excitement for our brand. We're already looking forward to the next project together." Our team created a launch experience that resonated with retail shoppers and generated momentum for future collaborations. This momentum only happens when the physical logistics match the creative vision. Without a solid operational foundation, field marketing testing and optimization frameworks fall apart.
Every new retail layout requires a distinct set of operational rules to function properly. When brands build dedicated zones inside existing spaces, they must manage the flow of traffic precisely. Without clear entry and exit points, shoppers can easily bypass the intended brand interaction. Managing this flow is critical for capturing accurate lead data and measuring true engagement.
To protect the sales pipeline, field teams must establish rigorous reporting protocols. Marketers have to map their physical activations to specific digital tracking metrics. This ensures that every in-person conversation can be traced to an eventual purchase. Brands test AI tools for field marketing and store execution to streamline this exact reporting process.
Failing to standardize field reporting leaves marketing executives guessing about campaign performance. An isolated store environment provides the perfect setting to refine these data collection methods. The lessons learned in a 1,500-square-foot footprint often dictate how a brand will approach its larger trade show appearances. Consistency in measurement allows teams to scale successful tactics confidently.
Ultimately, the physical environment must serve the strategic goals of the larger organization. Brands cannot treat these pilot spaces as temporary art installations. They are active commercial zones designed to move inventory and secure market share. Operating with that level of discipline separates successful activations from chaotic retail experiments.
During the company's second-quarter earnings call, Doug Howe explicitly outlined the operational intent behind the new store spaces. The chief executive stated that the four locations will be used to evaluate customer response and inform how the concept evolves going forward. This statement confirms that the retailer is treating the spaces as active testing grounds rather than finished commercial models.
The brand is reserving the right to adjust its strategy based on observed behavioral data. For field marketing professionals, this represents the exact mindset required to validate new engagement concepts. Every activation should be treated as a live hypothesis that requires field validation. Marketers must resist the urge to lock in a permanent layout before securing concrete performance data.
Testing environments allow brands to iterate on their staffing models and messaging strategies. If a particular product demonstration fails to resonate, the team can pivot without disrupting the entire retail fleet. This agility is the primary advantage of keeping a pilot strictly confined to four locations. It offers maximum learning potential with minimal corporate risk.
Testing a physical footprint requires operational rigor to yield usable business data. Brands cannot scale an engagement model if they do not accurately measure the first iteration. How will your marketing team adjust its field reporting to ensure your next physical activation captures genuine buyer intent?
Stay focused on the metrics that matter.
When experiential retail pilots isolate shopping zones to measure behavior, Makai manages the physical footprint to capture accurate intent. To solve the scattered attention and poor booth flow that corrupts pilot data, our Consumer Events capability designs memorable live experiences that bring brands and people together through interaction, emotion, and engagement. Request a proposal
30 Years Experiential & Retail Activation Partner for CPG & Beverage Brands | Multi-Market Demos, Roadshows & Costco/Club Programs That Actually Sell
