Dillards posts Q3 profit- same store sales down 24%- closing 1 Phoenix store

Predicting the demise of Sears & Kmart since 2017!
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Dillards posts Q3 profit- same store sales down 24%- closing 1 Phoenix store

Post by storewanderer »

https://www.arkansasbusiness.com/articl ... iscal-loss

So I guess the Phoenix closure is not the clearance store- it is at Paradise Valley Mall. Huh... that kind of leaves a hole in Dillards Phoenix area presence, especially when you figure the Clearance Center at Metrocenter and their tract record is they don't operate the clearance centers long term, though that one has been running for a while. I wonder what happened here.
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Re: Dillards posts Q3 profit- same store sales down 24%- closing 1 Phoenix store

Post by buckguy »

They're still buying back stock, even with this dismal report. I wonder how long before the Dillard family sells out to private equity.

They have lots of holes on their coverage of different metros. They flamed-out in their more northerly markets early on and have been leaving gaps in their previously more successful markets.
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Re: Dillards posts Q3 profit- same store sales down 24%- closing 1 Phoenix store

Post by SamSpade »

P.V. Mall has declined significantly over the past few years, Retail Archaeology has chronicled recent developments on YouTube.

Thanks for the update on Dillard's.
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Re: Dillards posts Q3 profit- same store sales down 24%- closing 1 Phoenix store

Post by arizonaguy »

storewanderer wrote: November 12th, 2020, 11:21 pm https://www.arkansasbusiness.com/articl ... iscal-loss

So I guess the Phoenix closure is not the clearance store- it is at Paradise Valley Mall. Huh... that kind of leaves a hole in Dillards Phoenix area presence, especially when you figure the Clearance Center at Metrocenter and their tract record is they don't operate the clearance centers long term, though that one has been running for a while. I wonder what happened here.
Paradise Valley Mall is a "dead" mall whose owners (Macerich) want to eventually redevelop. Most of the in line tenants are on short term leases (if they are in the mall at all). The neighboring developments of Kierland Commons, Scottsdale Quarter, and Desert Ridge have killed the mall over the past 15 years (in addition to the fact that the demographics of the area surrounding the mall have definitely trended towards working class versus middle to upper middle class when the mall was built. Surprisingly Macy's and JCPenney are still open at Paradise Valley Mall (although for how much longer, I have no idea as neither Macy's nor JCPenney have invested in their stores in about 10 years or so).

Tax records indicate Dillard's owns the property that this store is located on. I wouldn't be surprised to see that they have worked out a sale to either sell it to Macerich or another developer. The redevelopment of the mall was specifically mentioned in the recent mayoral election.

Dillard's stores at Arrowhead Town Center and Scottsdale Fashion Square can probably adequately serve the market. Surprisingly they still have a full line store open at Desert Sky Mall (which most traditional retailers abandoned 15 years ago).
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Re: Dillards posts Q3 profit- same store sales down 24%- closing 1 Phoenix store

Post by storewanderer »

arizonaguy wrote: November 13th, 2020, 4:40 pm
Paradise Valley Mall is a "dead" mall whose owners (Macerich) want to eventually redevelop. Most of the in line tenants are on short term leases (if they are in the mall at all). The neighboring developments of Kierland Commons, Scottsdale Quarter, and Desert Ridge have killed the mall over the past 15 years (in addition to the fact that the demographics of the area surrounding the mall have definitely trended towards working class versus middle to upper middle class when the mall was built. Surprisingly Macy's and JCPenney are still open at Paradise Valley Mall (although for how much longer, I have no idea as neither Macy's nor JCPenney have invested in their stores in about 10 years or so).

Tax records indicate Dillard's owns the property that this store is located on. I wouldn't be surprised to see that they have worked out a sale to either sell it to Macerich or another developer. The redevelopment of the mall was specifically mentioned in the recent mayoral election.

Dillard's stores at Arrowhead Town Center and Scottsdale Fashion Square can probably adequately serve the market. Surprisingly they still have a full line store open at Desert Sky Mall (which most traditional retailers abandoned 15 years ago).
I'm sure they must have made a deal to sell the real estate and it must have been a good deal because this is a pretty sudden closure that seems to have come as a surprise. And it appears it needs to be done by year end.

Maybe once Paradise Valley goes, they can convert Desert Sky into a clearance store. The physical condition at Desert Sky is pretty rough, just so dated of a store there. It looks more dated than a JC Penney in there. Maybe the numbers work out to keep it a full line store for it being in a busy area and given it is still an active mall, even if it is a lot of discount stores surrounding. Also it seems Desert Sky Mall has done a good job recruiting local businesses to replace the spaces that the in-mall chain stores left and traffic is still going to the mall.
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Re: Dillards posts Q3 profit- same store sales down 24%- closing 1 Phoenix store

Post by rwsandiego »

storewanderer wrote: November 13th, 2020, 11:34 pm...I'm sure they must have made a deal to sell the real estate and it must have been a good deal because this is a pretty sudden closure that seems to have come as a surprise. And it appears it needs to be done by year end. ...
I'm sure that's what happened, especially since the city wants the mall site to be redeveloped. Dillard's is the nicest store in the mall. The few times I've been to Macy's it was completely dead and a complete dive. Penney's was worse.
storewanderer wrote: November 13th, 2020, 11:34 pm...Maybe once Paradise Valley goes, they can convert Desert Sky into a clearance store. The physical condition at Desert Sky is pretty rough, just so dated of a store there. It looks more dated than a JC Penney in there. Maybe the numbers work out to keep it a full line store for it being in a busy area and given it is still an active mall, even if it is a lot of discount stores surrounding. Also it seems Desert Sky Mall has done a good job recruiting local businesses to replace the spaces that the in-mall chain stores left and traffic is still going to the mall.
It was surprising to see Desert Sky wasn't a clearance store. Valley Metro is either extending the light rail or building a BRT from Downtown to either I-10 and 79th Ave or Desert Sky Transit Center. It will be interesting to see what happens if light rail is built. It would not surprise me if parts of the mall (like Dillard's) were redeveloped.
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Re: Dillards posts Q3 profit- same store sales down 24%- closing 1 Phoenix store

Post by storewanderer »

rwsandiego wrote: November 14th, 2020, 4:36 pm It was surprising to see Desert Sky wasn't a clearance store. Valley Metro is either extending the light rail or building a BRT from Downtown to either I-10 and 79th Ave or Desert Sky Transit Center. It will be interesting to see what happens if light rail is built. It would not surprise me if parts of the mall (like Dillard's) were redeveloped.
I wonder if Dillard's has some kind of merchandising strategy for malls like Desert Sky that are heavily Hispanic. I wonder if they have some locations in Texas like that as well? The mall in El Centro, CA with Dillards would have similar demographics but seems to look like most other suburban malls look as far as its tenants. Desert Sky is absolutely and heavily catering to the demographics of the area (and appears to be doing so successfully- at least keeping people coming to the mall and filling up a lot of tenant spaces with small businesses).
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Re: Dillards posts Q3 profit- same store sales down 24%- closing 1 Phoenix store

Post by arizonaguy »

Pretty much confirmation that the Dillard's closure is linked to mall redevelopment.

https://www.abc15.com/news/region-north ... to-reality

Also it seems that they may be trying to get Macy's, JCPenney, and/or Costco out as well. The first two probably won't be around much longer anyways but Costco leases its building so they could not renew its lease.
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Re: Dillards posts Q3 profit- same store sales down 24%- closing 1 Phoenix store

Post by storewanderer »

Went into Dillards today. Store was nearly deserted, employees easily outnumber customers, and there weren't many employees either.

Store is well stocked for Christmas; gift type items spread around the busier parts of the first floor surrounding cosmetics areas for women, similar to Macy's. Men's area where they used to have a lot of dress shirts, etc. has cut that space in half and has various "gift" type boxed items there, some board games (Adult ones), etc. Some dead space in a corner in men's area where they usually put out of season clearance shirts- all empty now- this would usually have 4-5 big round racks. There is little to no clearance product in men's, obviously they shipped it out.

Second floor women's area has a lot of coats but other areas are not very full; dress area is quite full and has a few racks of clearance items. Areas around the center walkways look well stocked and full. There is a large dead space probably 2,000 square feet in a corner that is completely empty of merchandise. Very little clearance merchandise in women's area as well. Obviously sent a lot of stuff out. Home department is very well stocked, Christmas displays with decor, etc. are full and well stocked, overstocked probably. Other home items for kitchen seemed very well stocked (probably overstocked), luggage definitely overstocked, towels perhaps understocked, and bedding items stocked about right.

Store was clean and orderly as usual. Very limited price promotion in this store. My perception is Macy's has much better deals. Will be interesting to see how things go for them this Christmas.
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Re: Dillards posts Q3 profit- same store sales down 24%- closing 1 Phoenix store

Post by storewanderer »

Dillard's has always had a somewhat not great return policy on items purchased "at 65% off" - 3 day return limit, and the day of purchase counted as one of the days.

Now they have changed this policy further. If the item has an additional % off, it is not returnable period.

So if the item is say 50% off you can return it within the usual 30 days. But if it is 50% off plus additional 30% off (as they had yesterday and today- additional 30% off all markdown items- I guess the January 1 sale wasn't enough action for them) it is final sale due to having the additional % off. Lots of signs about this but nothing verbally was said to me during purchases. The receipt shows the no refund/exchange language in multiple places. US retailers have always had rather lax return policies compared to retailers in other countries but this just seems like an uncompetitive return policy that will lead to upsetting and confusing some customers.

At least they are now open until 8 PM Friday and Saturday. That is better hours than they had most of December as they closed at 7 every night most of December until about 5 days before Christmas they bumped up to 9 PM.
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