Cut-price footwear retailer DSW Inc has shed 98 jobs or 13% of its workforce after announcing a 4.1% decline in third quarter same store sales.

Net sales at the US company were up 6.5% to US$391.4m in the period ended 1 November, but same store sales were down 4.1%.

For the first nine months of DSW's fiscal year, sales increased 3.9% to $1.11bn, but same store sales declined 5.5%.

DSW said it had cut 98 jobs from its home office and field leadership workforce, including 16 vacancies that will not be filled.

"The move was part of a plan to decrease its cost structure in light of the general economic decline and expectations for continued lower consumer spending into 2009," said DSW.

The company will record a pre-tax charge of about $3m linked to the job losses in its fourth quarter results, it added.