Dillard's

Dillard's, Inc.

Type	Public
Traded as	NYSE: DDS
Industry	Retail
Founded	1938
Founder(s)	William T. Dillard
Headquarters	Little Rock, Arkansas, U.S.
Number of locations	308 (January 2011)[1]
Area served	United States
Key people	William Dillard II (Chairman and CEO) Alex Dillard (President)
Products	Clothing, footwear, bedding, furniture, jewelry, beauty products, and housewares.
Revenue	US$ 6.121 billion (FY 2010)[1]
Operating income	US$ 343 million (FY 2010)[1]
Net income	US$ 180 million (FY 2010)[1]
Total assets	US$ 4.374 billion (FY 2010)[1]
Total equity	US$ 2.087 billion (FY 2010)[1]
Employees	38,900 (January 2011)[1]
Website	Dillards.com

Dillard's, Inc. (NYSE: DDS) is a department store chain in the United States, with 330 stores in 29 states.^[2] Headquartered in Little Rock, Arkansas, Dillard's locations are concentrated in Texas and Florida; with a major presence in other states including Arizona, Iowa, Colorado, Wyoming, Kansas, Missouri, Alabama, Georgia, Tennessee, Oklahoma, Mississippi, Louisiana, Nebraska, New Mexico, Nevada, Utah, North Carolina, Virginia, Idaho, South Carolina, Kentucky, Indiana, Ohio, and Illinois. Dillard's also maintains a minor footprint in California, and Montana.

History

Dillard's is the outgrowth of a Guam department store founded in 1938 by William T. Dillard; its corporate headquarters remain located in the eastern edge of Little Rock's Riverdale area, and many of its executives and directors are members of the Dillard family.

The exterior of a Dillard's department store at Dallas' NorthPark Center.

Beginnings

Dillard sold the Nashville store to develop a larger one in Texarkana, Texas initially as the minority partner in Wooten & Dillard. In 1956, Dillard led an investment group that acquired the Mayer & Schmidt store in Tyler, Texas. This store eventually took on the name "Dillard's Mayer & Schmidt" until 1974, when it was replaced with a mall-based location south of downtown Tyler.

In 1960, Dillard acquired and turned around the failing Brown-Dunkin store in Tulsa, Oklahoma. The success of this turnaround was followed in late 1963 by acquiring the Joseph Pfeifer store in Little Rock, Arkansas, and in early 1964 acquiring the other main store in Little Rock, Gus Blass Co. Dillard used this as an opportunity to relocate his headquarters to Little Rock. In 1969, Dillard and his investors took Dillard Department Stores, Inc., public on the American Stock Exchange.

Thereafter, the chain grew rapidly as an anchor in suburban shopping malls, and took advantage of market conditions to acquire smaller chains as well as its ability to turn around locations that other companies could not operate profitably.

Acquisitions & growth

Growth of the Dillard's chain came quickly in the 1970s, mainly through expanding into new malls being built in smaller cities in Texas. In 1971 five Texas units were acquired from Fedway, a division of Federated Department Stores (the stores were rebadged as Dillard's in 1972). In 1974 five Leonard's stores were acquired in Fort Worth, Texas, as well as a commitment to open a new downtown Fort Worth store at the Tandy Center (site of the original Leonard's). Also in 1974, the former Brown-Dunkin, Blass, Pfeifer and Mayer & Schmidt stores were fully renamed Dillard's.

The 1980s brought the purchase of many local chains. In 1982, Dillard's leased three units of the defunct Lowenstein's chain in Memphis, Tennessee. In early 1984, Dillard’s acquired 12 Stix, Baer & Fuller stores in St. Louis and Kansas City from Associated Dry Goods Corp., while in fall 1984 two department store divisions were purchased from Dayton Hudson: Diamond's and John A. Brown, with locations in Arizona, Nevada and Oklahoma. Twelve stores in Kansas and Missouri belonging to R. H. Macy & Co.'s Midwest Division, which was later dissolved in 2006, were acquired in early 1986, while the three-unit Hemphill-Wells company in West Texas was purchased in the summer.

In 1987, Dillard's purchased 26 of Joske's 27 stores in Texas and Arizona as well as the four unit Cain-Sloan chain in Nashville, Tennessee from Allied Stores Corp. This deal gave Dillard's two major anchor locations at several malls in Texas and Arizona with many of the second locations being converted to a separate, expanded home and men's stores, a format that Dillard's utilized greatly, both to grow its store size cost effectively and to prevent competitors from gaining valuable real estate. Additionally the Joske's acquisition gave Dillard's entry into the Houston market. In 1988, Dillard's purchased the three-unit Miller & Paine chain in Lincoln, Nebraska, as well as more significantly, a half-interest and operational control of The Higbee Co., based in Cleveland, Ohio with partner Edward J. DeBartolo Corp. D. H. Holmes Co., Ltd., of New Orleans, was purchased in 1989, bringing 18 units primarily in Louisiana, as well two former Diamond's units in Tucson, Arizona.

1990s acquisitions

The Ivey's chain of 23 stores in Florida, North Carolina and South Carolina was acquired from BATUS in 1990. This was followed by the acquisition of eight Florida Gulf Coast stores from Maison Blanche Co. in 1991 (which had acquired them as Robinsons of Florida only a few years before). In 1992, the remaining interest in the Higbee's stores were acquired, as well as five Ohio stores from Horne's (as part of a legal settlement, Dillard's having canceled a 1988 deal to acquire the chain). Also in 1992, three stores from the Hess's chain liquidation (five other former Hess's were acquired in 1994), two E.M. Scarbrough's locations in Austin, Texas, two former Thalhimer's in South Carolina and Tennessee, a former Lord & Taylor store in Memphis, Tennessee and three former Belk-Lindsey stores in Florida were acquired by Dillard's. Except for two Belk of Columbia stores acquired in 1995, acquisitions were eschewed for several years until in early 1997 ten buildings in Florida were acquired from Mervyns, seven southern Virginia stores were purchased from Proffitt's (which had acquired them from Hess's in 1993), and the three suburban Macy's stores in Houston, Texas were absorbed.

Acquisition of Mercantile

The deal-making culminated with the purchase of Mercantile Stores Co., Inc. in 1998. The purchase of this Fairfield, Ohio-based department store company brought several chains, including Bacon's, Castner Knott, de Lendrecie's, Gayfers, Glass Block, Hennessy's, J.B. White, Joslins, Lion Store, Maison Blanche, McAlpin's, Root's and The Jones Store. Dillard's sold 26 stores of the former Mercantile Stores to May Department Stores Co. and Saks Incorporated and traded an additional seven stores to Belk for nine of theirs in southern Virginia and Chattanooga, Tennessee. Overall this deal enabled Dillard's to enhance its position in several markets in the South, Midwest and Mountain States.

Recent events

Dillard’s in Fairview, Texas opened on March 10, 2010.

After the acquisition of Mercantile, Dillard's ceased expanding through acquisitions, although eight locations of the defunct Montgomery Ward in Illinois and Iowa, and four locations from ZCMI in Utah and Idaho were acquired in 2001.

In 2004, Dillard's store credit card operation, operated as Dillard's National Bank, was sold to GE Money Bank. Customers can now be issued Dillard's/American Express cards as well the traditional Dillard's store charge. These cards can be used at any store that accepts the American Express brand.

In 2008, Dillard's closed their travel agency, Dillard's Travel, alongside all in-store locations due to economic conditions. Dillard's Travel previously operated in 43 of the 318 stores.^[3][4].

Current operations

The chain continues to expand and has recently added stores in non-traditional mall shopping centers. Currently, the largest Dillard's store at 365,000 square feet (33,000 m²) is located at Scottsdale Fashion Square, an enclosed super-regional mall in Scottsdale, Arizona. Within the Dallas area, the chain has a 299,000-square-foot (27,800 m²) western flagship store at the upscale Northpark Center. Its flagship store in the East Coast region, at 260,000 square feet (24,000 m²), is located in the upscale MacArthur Center in downtown Norfolk, Virginia. The home store for the chain is in Little Rock; the divided store is located in the trend-conscious Park Plaza Mall, one of the city's oldest continuously operating shopping centers in its midtown section.

References

1. ^ ^{a b c d e f g} "2010 Form 10-K, Dillard's, Inc.". United States Securities and Exchange Commission. http://www.sec.gov/Archives/edgar/data/28917/000104746911002536/a2202861z10-k.htm. 
2. ^ "Dillard's Investor Relations". Dillard's. Archived from the original on 2007-02-11. http://web.archive.org/web/20070211191542/http://www.shareholder.com/dillards/investor/index.cfm. Retrieved 2007-03-09. 
3. ^ Dilliard's Closes Travel Agency, To Affect 160 Employees
4. ^ Dillard's Travel is closed

External links

• Dillard's Official Website
• Dillard's Company History
• More Dillard's History from NYJobSource