Dillard's, Inc. (DDS) in Little Rock, Ark., operates retail department stores in the Southeastern, Southwestern, and Midwestern areas of the United States. Its stores offer merchandise that includes fashion apparel, accessories, cosmetics, and home furnishings. In comparison, Nordstrom, Inc. (JWN) in Seattle, Wash., is a fashion retailer that provides clothing, shoes, beauty, accessories, and home goods for women, men, young adults, and children. It offers various channels and a range of brand names and private label merchandise.
The resurgence of COVID-19 cases has proved to be a massive obstacle for department stores because supply chains and operations have been disrupted. However, many retailers have strengthened their online presence to benefit from the online buying trend. While online sales are helping many retailers, increasing physical store sales with the reopening of the economy should help them thrive in the coming months. As stores integrate data analytics into management to streamline operations and enhance supply chain efficiency, there is the potential for further growth in the sector. According to a ReportLinker report, the global department stores industry is expected to grow at a 3.7% CAGR through 2027. Therefore, both DDS and JWN should benefit.
