Despite a massive profit last year, Dillard's is closing stores in 3 states. Is this another example of retail apocalypse or this strategic?
What is Happening?
William T. Dillard CEO of Dillard's said in a statement,
"We are entering our 85th year of operation in a strong position with today's results... Fiscal year earnings per share of $50.81 seemed impossible just a couple of years ago, but we have seen what we can do by controlling our inventory and focusing on our customer."
This is indeed extraordinary as Dillard's posted a profit of $289.2M in 2022.
Which Stores are closing?
However, now comes word that the company is closing stores in Florida, Nebraska and Arizona. Shop Association reports, "Dillard’s, Inc. (Little Rock, Ark.) will close three stores during its current quarter and open a new one next year. The department store chain included that information in a news release detailing its financial results for its fourth quarter and fiscal year ended Jan. 28. The stores to close are: Santa Rosa Mall, Ft. Walton Beach, Fla. (115,000 square feet), Conestoga Mall, Grand Island, Neb. (80,000 square feet), Metrocenter Mall, Phoenix, Arizona (90,000)"
New Store Openings
Dillard's isn't just closing stores it's also opening new ones. A new store is planned to open in 2024 in Sioux Falls, South Dakota. It's expected to be a 140,000 square foot store in The Empire Mall.
What are your thoughts?
What do you think about this recent spate of store closures? Have you ever shopped at Dillard's? What has your experince with the retailer been like? I'd like to know your thoughts.
Please let me know what you think in the comments below.
Comments / 0