Macy's Store Closures Could Help This Rival
Last week, Macy's (NYSE: M) announced that it will close about 30 more full-line stores over the next few months. This marks the second major round of closings under a three-year plan to shrink the Macy's full-line store fleet by nearly 25%. The top U.S. department store operator is exiting small and midsize markets and shuttering its lower-productivity stores in big metro areas in favor of a focus on its best-located stores in big markets and its e-commerce business.
But while Macy's has decided it needs to retrench, one of its main rivals has become fairly adept at operating low-volume stores. That could allow Dillard's (NYSE: DDS) to capitalize on its competitor's downsizing.
At first glance, Macy's and Dillard's seem quite similar. Both companies operate large-format department stores, primarily in regional malls. They are positioned as higher-end brands than the likes of J.C. Penney and Belk, but more affordable than Nordstrom. Indeed, Macy's and Dillard's often compete for the same customers in markets where both chains operate.
Source Fool.com
