Dillard's Inc. is a mid-range to upscale retail department store chain in the United States in 29 states.
The economic factors affecting the operations of these retailers are macro-economic factors including increase in fuel and energy costs, higher payroll taxes and delays in tax refunds, coupled with unfavorable weather conditions hindered consumer spending and in turn adversely affected the growth and profitability of companies
The main competitors in the industry are Sears Domestic, Macy’s Inc., JCPenney Company Inc. and then at 4th comes the Kohl’s Corporation.
Risks faced by the companies are –
Low-growth consumer markets,
Regulation and compliance,
Inability to control costs/rising input prices,
Inability to benefit from e-commerce,
Supply chain disruptions,
Inability to penetrate emerging markets,
Failure to respond to shifting consumer behavior,
Volatility in commercial real estate markets
Price deflation versus rising costs
M&A expansion and consolidation
Supply chain management and stock control
Sourcing overseas and CSR
Accounting, reporting & regulation
Consumer and demographic trends
Human resources issues
Tax issues
Opportunities
Rising emerging market demand and rise of global middle class
New marketing channels and social media
Competitive differentiation via CSR and green branding
Multichannel approach
Demographic change
Private label
Launching new products and services
Global urbanization
Competitive differentiation via local branding
Enhancing efficiency in the supply chain
Kohl’s and Dillards are similar in the manner that they are both part of the same industry i.e. the retail department store industry.
The differences between them are the numbers of the stores and also in the approach. Kohl’s Corporation is more like discount store where Dillard’s Inc. offers more sophisticated and upscale approach, although