THE TOP TEN
DILLARD’S SOUTHERN CHARM WOOS SHOPPERS.
Byline: SHARON EDELSON
NEW YORK — Dillard Department Stores is usually a safe bet.
The $5.6 billion department store chain, which operates 227 stores stretching through 20 states across the U.S., serves up a consistent collection of moderate to bridge apparel.
In the WWD survey, Dillard’s was rated the favorite store in Dallas and ranked second in Phoenix.
Dillard’s has strong appeal for working women and women 30 to 50 years old from households with incomes over $50,000. Those favoring this store tend to have college degrees or some college training.
Selection and variety of apparel were mentioned by 77 percent of respondents as the major reason for choosing Dillard’s as their favorite store. Other pluses: brands/quality, chosen by 55 percent; sales, picked by 26 percent; service, cited by 19 percent, and fit, ambience and location, each scoring 16 percent.
Dillard’s also topped the list for the best selection of clothing.
The merchandise mix, although as familiar as meat and potatoes, includes such national brands as Liz Claiborne, Chaus, JH Collectibles, Kasper for ASL, Jones New York, Crazy Horse and Leslie Fay.
Women’s apparel and accessories account for 35.8 percent of the store’s merchandise. The company has expanded its cosmetics business in recent years and has been developing its own private label.
“The clothes are what I call good cross-over clothing that can go from work to eveningwear,” said one respondent. “Dillard’s has knowledgeable sales employees. I like the way the store is laid out. You are not jammed between displays, which are neat and orderly. It doesn’t look like you are at a flea market.”
The chain is renovating many of its stores with molded ceilings and recessed lighting. Stores which used to be austere have been given some flair through improved visual displays with more interesting fixtures.
The chain’s NorthPark Center unit, one of its top producing stores, is being greatly expanded with a new floor. Its cosmetics area has also received a facelift and is now bright and airy.
“It has a pleasant atmosphere and is brightly lighted,” said a respondent. “Things are marked well, and sales people are pretty nice.”
“If there is a problem, you can always exchange without a hassle,” said another. “They have pretty good quality. The restrooms are clean. The store is convenient to where I live.”
Dillard’s ranked fourth for selection of women’s clothing, behind J.C. Penney, Macy’s and Nordstrom.
Nationally, Dillard’s placed fourth in designer clothing, suits, dresses and career clothing. In the Phoenix and Dallas areas, Dillard’s was rated the best store for designer clothing, career apparel, suits and dresses.
Dillard’s has been lauded for its low expense structure. The expense ratios read more like a Wal-Mart than a department store, and the company is intent on passing along savings to consumers.
William Dillard 2nd, the company’s enigmatic and strong-willed president and chief operating officer, instituted the store’s everyday-low-pricing strategy, which lops 25 to 33 percent off manufacturer’s suggested retail prices.
But it was roundly criticized on SA when it was first announced, and the strategy faltered when consumer resistance or pressure from competitors’ price promotions forced the chain to take unwanted price reductions.
But Dillard’s sees the concept as a long-term way to build customer loyalty. The company acknowledged that it puts the squeeze on margins, but points to its low expense structure as a means of offsetting that pressure on profits.
Dillard’s does best in midsize, middle-income markets, but has also opened stores in larger cities, like Dallas. It also plans aggressive expansion into Mexico, where it expects to open six stores in the next two years.
