Dillard's Plans to Open Smaller, More Fashion-Forward Stores

Dillard's Plans to Open Smaller, More Fashion-Forward Stores
February 22, 2008

As part of its turnaround strategy, Little Rock, Ark.-based department store chain Dillard's plans to offer more fashionable merchandise in smaller stores, in hopes of positioning itself above Macy's and Belk, and below Nordstrom and Bloomingdale's, according to WWD.com. Julie Bull, director of investor relations, said the goal is to offer "affordable luxury and less promotion." The company is "trying to evolve from moderate to better prices and update from traditional, basic product to more enticing fashion assortments," said William T. Dillard III, vice president of accessories, intimate apparel and shoes. Dillard's new direction is inspired by specialty stores, showcasing in-store boutiques for lines such as BCBG Max Azria, Peter Nygard and Lucky Brand Jeans. Dillard's new stores are also smaller, measuring about 170,000 sq. ft. and located in open-air lifestyle centers, compared with 200,000 sq. ft. for older locations in traditional malls. "If you haven't been in a Dillard's lately, you wouldn't recognize it,'' Dillard said. "We knew moderate, promotional product was not working, and we changed the old philosophy of 'stack it high and let it fly,' of my grandfather's day, to more edited, fashionable product." Dillard's will open nine new stores this year, all in open-air lifestyle centers in smaller markets.