Makeover at Dillard's: Store Moving Upscale Adding More Fashion

Dillard's has grown, though not necessarily thrived, over the years, largely through acquisitions. The acquired companies and stores were a mixed bag of good and mediocre players; Dillard's became a real melting pot and the diverse roots are still evident in the stores today. The stores are sometimes dark and convoluted with unusual merchandise adjacancies (but heck, the old Marshall Field's merchandised...

While management is clearly thinking long and hard about its business, tough choices need to be made about how to best position Dillard's for the future. Dillard's clearly needs to take a leadership position in evolving the industry to a healthier, more exciting consumer environment at retail, which would be a long term positive for both the company and the sector. Dillard's has a huge opportunity...

Their stores don't measure up to their competitiors as far as looks or staffing. They don't market their brand very well. They struggle with their brand merchandise both in the store and with most of their advertising.

Will Dillards put themselves in both a less profitable position, as well another year of sales declines?The positioning that Dillards plans to go to seems to have a small opportunity to grow sales and profits. Dillards cannot just put better goods on the floor to be successful, they need a total change in their service concept, which will add expenses.