Dillard’s, Macy’s, Nordstrom

Brandon WigfieldApril SmithsonLauren Harrison

Dillard’s Inc. Financials

Macy’s, Inc.

2008 2007 $ 000s $ 000s

Net sales 24,892 26,313

Gross margin 9,883 39.7% 10,636 40.4%

Net Income (after tax) -4,803 -19.3% 893 3.4%

GMROI 1.95 195% 2.00 200.0%

Inventory turnover 2.97 2.95

Asset turnover 0.90 0.89

Return on assets -17.3% 3.0%

Owners' equity, net worth 4,646 9,907 Return on net worth -48.5% 7.3%

Nordstrom, Inc

2008 2007

Net sales 8,828 8,561

Gross margin 3,302 37.4% 3,207 37.50%

Net Income (after tax) 1,173 13.3% 1,106 12.90%

Inventory 956 997

GMROI 3.45 345% 3.22 322%

Inventory turnover 5.78 5.37

Asset turnover 1.58 1.78

Return on assets 20.9% 22.90%

Return on net worth 105.2% 51.00%

Dillard’s Inc.2008 2007 2006

Number of stores 315 326 328

Sales per store $22,881 $23,423 $23,023

Sales per store WOMEN’S $8,465 $8,666 $8,518

Macy’s, Inc.2008 2007

Number of stores 850 850

Sales per store 29,432 31,879

Square feet of retail area 45,464 38,394

Sales per square foot $547.51 $685.34

Gross margin per sq foot $217.38 $277.02

Inventory per square foot $111.30 138.49

Employees 167,000 169,000Sales per Employee 149,000 156,000

Nordstrom, Inc

2008 2007Number of stores 156 191Sales per store 57 45

Square feet of retail area 20,502,000 20,170,000Sales per square foot $430.00 $420.00Gross margin per sq foot $160.00 $160.00Inventory per square foot $50.00 $50.00

Employees 55,000 52,900Sales per employee 161 162

Dillard’s Inc. Sales LinesPercentage of Net Sales  

 

    Fiscal2008    

Fiscal2007    

Fiscal2006  

Retail operations segment:       

Cosmetics    15%   15%   15%Ladies’ apparel and accessories    37    37    36 Juniors’ and children’s apparel    9    9    10 Men’s apparel and accessories    18    18    18 Shoes    13    13    13 Home and furniture    7    8    8 

    

 

   

 

   

 

   99    100    100 Construction segment    1    —      —   

    

 

   

 

   

 

Total    100%   100%   100%

    

 

   

 

   

 

Retail Trade Stores Sales % of sales

Dillard's Inc., 2008 10-K $7,207,417,000  

Cosmetics $1,081,112,550 15

Ladies' Apparel and Accessories $2,666,744,290 37

Juniors' and Childrens' Apparel $648,667,530 9

Mens' Apparel and Accessories $1,297,335,060 18

Shoes $936,964,210 13

Home Furnishings $504,519,190 7

Major Competitors: Macy’s, JC Penny, Kohls, etc…..

Macy’s, Inc. Sales Lines

Percentage of Net Sales

Retail Operations Segment

2008 2007 2006

Feminine Accessories, Intimate Apparel, Shoes and Cosmetics 36 % 36 % 35 % Feminine Apparel 27 27 28 Men’s and Children’s 22 22 22 Home/Miscellaneous 15 15 15

100 % 100 % 100 %

Major Competitors: Neiman Marcus, Dillards, SAKS, etc…..

Nordstrom, Inc Merchandise Line

            Women’s apparel  34% ($963,000) Shoes  21%  Men’s apparel  16% Women’s accessories  12% Cosmetics  11% Children’s apparel  3% 

Other  3%   

Major Competitors: Gap Inc, American Eagle, Goody’s

Geography Dillard’s

Households: Households 35

to 54 years; $75,000+/store

Households: Households

35 to 54 years;

$75,000+

Households: Total

Women’s Clothing stores

Women’s Clothing stores sales

Sales per

store

Pittsburgh, PA MSA 0-

104,570 967,044 277 269,047 971

Tampa--St. Petersburg--Clearwater, FL MSA 4 25,287 101,149 1,009,792 276 198,493 719

Kansas City, MO--KS MSA 3 34,167 102,500 694,971 185 176,250 953

Houston, TX PMSA; Houston--Galveston--Brazoria, TX CMSA 5 47,908 239,539 1,463,983 536 586,223 1,094

Dallas, TX PMSA; Dallas--Fort Worth, TX CMSA 1 220,915 220,915 1,283,156 641 583,164 910

Atlanta, GA MSA 3 93,006 279,017 1,505,564 641 610,480 952

St. Louis, MO--IL MSA 2 71,074 142,147 1,013,341 303 282,958 934

Nashville, TN MSA 1 65,585 65,585 479,744 176 166,879 948

Austin--San Marcos, TX MSA 2 39,417 78,834 472,085 165 176,247 1,068

Dillard’s Markets Examined

Macy’s Markets Examined

Geography Macy'sHouseholds:

Total

Households: Householder

25 to 34 years;

Household income;

$50;000 to $59;999

Households/storeWomen's Clothing Stores

Women's Clothing

Stores Sales

Sales Per Store

Denver, CO PMSA; Denver--Boulder--Greeley, CO CMSA 0 868,209 15,148 - 2,669 2,486,321 931

New York, NY PMSA; New York City 3 425,809 9,204 3,068 282 212,742 754

Chicago, IL PMSA; Chicago--Gary--Kenosha, IL--IN--WI CMSA 3 995,492 20,055 6,685 3,933 3,988,419 1,014

Atlanta, GA MSA 3 1,696,335 34,025 11,431 1,101 931,867 846

Houston, TX PMSA; Houston--Galveston--Brazoria, TX CMSA 1 3,485,449 55,984 55,984 3,017 4,013,858 835

Detroit, MI PMSA; Detroit--Ann Arbor--Flint, MI CMSA 1 2,972,373 61,662 61,662 1,438 1,353,417 750

Dallas, TX PMSA; Dallas--Fort Worth, TX CMSA 3 625,346 13,433 4,477 2,641 2,242,827 849

Phoenix--Mesa, AZ MSA 2 1,283,156 31,134 15,567 2,174 1,967,500 905

St. Louis, MO--IL MSA 3 1,463,983 29,648 9,882 2,368 2,082,271 879

San Diego, CA MSA 2 1,013,341 19,462 9,731 597 480,978 806

Orlando, FL MSA 2 1,505,564 40,328 20,164 1,130 893,891 791

New Orleans, LA MSA 3 462,080 8,678 2,892 1,125 762,515 678

Oklahoma City, OK MSA 2 505,778 7,691 3,845 538 435,665 810

Raleigh--Durham--Chapel Hill, NC MSA 2 1,194,461 26,958 13,479 503 1,325,011 2,634

Nordstrom, Inc MSAs Examined

Geography Number of StoresHouseholds:

Total

Households: Householder

35 to 44 years

Households: Householder

35 to 44 years;

Household income;

$75;000+

Household: Householder

35 to 44 years/ store

Family Clothing Stores Family Clothing Sales Sales Per Store

Charlotte--Gastonia--Rock Hill, NC--SC MSA1 575,510 140,031 42,103 140,031San Jose, CA PMSA; San Francisco--Oakland--San Jose, CA CMSA1 566,485 151,606 88,906 151,606San Antonio, TX MSA 1 560,293 134,014 28,502 134,014 110 350,292 3,184Austin--San Marcos, TX MSA 1 472,085 119,443 41,830 119,443 129 376,954 2,922Providence--Fall River--Warwick, RI--MA MSA1 462,080 103,981 28,253 103,981Raleigh--Durham--Chapel Hill, NC MSA1 461,335 114,997 40,654 114,997Honolulu, HI MSA 1 286,731 62,608 19,931 62,608 132 328,249 2,487Tacoma, WA PMSA; Seattle--Tacoma--Bremerton, WA CMSA1 260,897 65,465 16,783 65,465 36 142,730 3,965Fayetteville--Springdale--Rogers, AR MSA0 118,425 25,889 4,944 - 34 74,919 2,204Anchorage, AK MSA 1 95,080 26,718 9,186 26,718 23 110,094 4,787Oklahoma City, OK MSA 0 425,060 95,313 18,046 - 115 229,025 1,992Tucson, AZ MSA 0 332,497 69,557 14,165 - 82 172,362 2,102

Existing Locations Households Income Ages Children Education LifeStyle

1: 900 West Oaks Mall 3 mi. 42,569 $30-39m (130) 25-34 (130) <6 (118) College Grad (149) Striving Suburban Mix (950)

Houston, TX 77082 (Mall)

Lat: 29.731012 6 mi. 150,412 $100m+ (123) 25-34 (127) <6 (131) College Grad (154) Striving Suburban Mix (366)

Long. 95.648724 9 mi. 315,883 $100m+ (120) 25-34 (129) <6 (131) College Grad (144) Striving Urban Melting Pot (381)

2: 7925 FM 1960 Rd W 3 mi. 29,045 $100m+ (158) 35-44 (111) <6 (111) 6-17 (111)College Grad (154) Cosmopolitan Suburbs (481)

Houston, TX 77070 (Mall)

Lat: 29.958111 6 mi. 126,938 $100m+ (151) 45-54 (122) 6-17 (138) College Grad (154) Midscale Suburban Mix (471)

Long: 95.540784 9 mi. 259,406 $100m+ (135) 35-44 (125) <6 (139) College Grad (154) Struggling Small City Mix (381)

3: 10 Greenspoint Mall 3 mi. 32,012 $20-29m (163) 18-24 (202) <6 (171) Grade School (215)Struggling Small City Mix (1419)

Houston, TX 77060 ( Mall)

Lat: 29.942492 6 mi. 103,817 $20-29m (138) 18-24 (150) <6 & 6-17 (162) Grade School (199)Striving Suburban Mix (863)

Long: 95.412301 9 mi. 246,369 $20-29m (124) 18-24 (128) <6 & 6-17 (144) Grade School (175)Striving Suburban Mix (615)

4: 400 NW Barry Rd 3 mi. 21,579 $75-99m (126) 18-24 (131) No Children (106) College Grad (121) Striving Small City Living (623)

Kansas City, MO 64155 (Mall)Lat: 39.248387 6 mi. 66,905 $50-74m (125) 25-34 (119) <6 (111) College Grad (123) Striving Small City Living (441)

Long: 94.583332 9 mi. 99,223 $75-99m (119) 25-34 (116) <6 (110) College Grad (113) Striving Small City Living (386)

5: 8800 Ward Pkwy 3 mi. 40,095 $100m+ (113) 65+ (132) No Children (116) College Grad (180) Striving Suburban Mix (369)

Kansas City, MO 64114 (Mall)Lat: 38.968888 6 mi. 148,817 $30-39m (112) 18-24 (110) No Children (115) College Grad (166) Striving Suburban Mix (336)

Long: 94.605068 9 mi. 282,051 $100m+ (108) 18-24 (110) No Children (107) College Grad (148) Suburban Aristocrats (351)

6: 8640 N Dixson Ave. 3 mi. 16,885 $75-99m (136) 25-34 (114) No Children (105) College Grad (149) Affluent Suburbs (670)

Kansas City, MO 64153 (Mall)Lat: 39.249369 6 mi. 42,710 $75-99m (135) 25-34 (120) <6 (111) College Grad (132) Affluent Suburbs (506)

Long: 94.668937 9 mi. 86,340 $50-74m (115) 25-34 (113) No Children (103) Some College (111)

Midscale Minipolitan (418)

7: 2202 E. Fowler Ave. 3 mi. 53,892 Under $10m (184) 18-24 (246) No Children (107) Some HS (128) Striving Urban Melting Pot (1144)

Tampa, FL 33612 (Mall)

Lat: 28.054588 6 mi. 147,464 Under $10m (142) 18-24 (177) No Children (105) Some HS (116) Striving Urban Melting Pot (782)

Long: 82.434454 9 mi. 241,557 Under $10m (125) 18-24 (147) No Children (104) Some HS (112) Striving Urban Melting Pot (537)

8: 8161 Citrus Park Town Ctr Mall

3 mi. 27,780 $100m+ (130) 35-44 (127) <6 (132) College Grad (127) Affluent Suburbs (547)

Tampa, FL 33625 (Mall)

Lat: 28.069275 6 mi. 100,194 $100m+ (116) 35-44 (117) <6 (113) College Grad (128) Affluent Suburbs (313)

Long: 82.574993 9 mi. 197,771 $30-39m (109) 35-44 (109) <6 (105) College Grad (112) Striving Urban Melting Pot (364)

Mall location Minimum 6 mi: 42,710

$100m+ 25-34 <6 College Grad Striving Suburban Mix/Not completely clear

             

Existing Locations Households Income Ages Children Education LifeStyle1: 111 Boulder Industrial DrBridgeton, MO 63044Lat: 38.779961 6 mi. 74,885 $40-49m (125) 18-24 (113) No children (110) HS Graduate (110) Midscale Minipolitan (528)Long. 90.445581 9 mi. 179,099 $50-74m (116) 45-54 (105) No children (107) HS Graduate (104) Midscale Minipolitan (443)2: 2 W County CtrSt Louis, MO 63131Lat: 38.601233 6 mi. 104,283 $100,000+m (183) 55-64 (125) No children (106) College graduate (201) Affluent Minipolitan Sprawl (650)Long: 90.449041 9 mi. 261,213 $100,000+m (139) 55-64 (112) No children (109) College graduate (167) Affluent Minipolitan Sprawl (445)3: 1550 Saint Louis GalleriaSt Louis, MO 63117Lat: 38.634083 6 mi. 198,956 Under $10,000 (121) 65+ (110) No children (113) College graduate (141) Striving melting pot (456)Long: 90.348101 9 mi. 376,588 Under $10,000 (130) 65+ (109) No children (110) College graduate (120) Struggling Urban Mix (450)4: 1702 Camino Del RioN. San Diego, CA 92108Lat: 32.769495 6 mi. 266,226 $20-$29m (108) 18-24 (142) No children (113) College Graduate (122) Striving Urban Melting Pot (423)Long. 117.146350 9 mi. 423,510 $75-$99m (104) 18-24 (133) No children (110) College Graduate (126) Cosmopolitan Urban Mix (349)5: 275 Fashion VlySan Diego, CA 92108Lat: 32.761669 6 mi. 261,591 $20-$29m (108) 25-34 (139) No children (115) College Graduate (128) Cosmopolitan Suburbs (428)Long: 117.169074 9 mi. 390,383 $100,000+ (104) 18-24 (134) No children (112) College Graduate (129) Striving Urban Melting Pot (358)6: 160 Horton PlazaSan Diego, CA 92101Lat: 32.713751 6 mi. 218,130 $20-$29m (121) 25-34 (135) <6 &6 -17 (111) Grade School (155) Struggling Urban Mix (550)Long: 117.162552 9 mi. 386,860 $30-$39m (106) 18-24 (132) No children (108) Some College (117) Striving urban Melting Pot (442)7: 2501 W. Memorial RdOklahoma City, OK 73134Lat: 35.614105 6 mi. 82,433 $30-$39m (110) 18-24(146) No Children (106) College Graduate (156) Midscale Minipolitan (404)Long. 97.560894 9 mi. 150,506 $30-$39m (111) 18-24 (138) No Children (107) College Graduate (143) Striving Small City Living (498)8: 7000 Crossroads BlvdOklahoma City, OK 73149Lat: 35.397244 6 mi. 266,909 $10-$19m (138) 18-24 (134) <6 (114) Some College (114) Struggling Small City Mix (592)Long: 97.486228 9 mi. 398,784 $10-$19m (138) 18-24 (135) No Children (105) <6 (109) Struggling Minipolitan (623)

Struggling Minipolitan (750)3 mi. 62,091 $10-$19m (158) 18-24 (151) <6 (109) Some College (106)

Struggling Urban Mix (619)

3 mi. 25,225 $20-$29m (112) 18-24 (176) No Children (110) College Graduate (165) Struggling Small City Mix (599)

3 mi. 73,724 Under $10,000m (137) 25-34 (132) No children (124) College Graduate (136)

Striving Urban Melting Pot (589)

3 mi. 81,362 $30-$39m (114) 25-34 (144) No children (128) College Graduate (141) Striving Urban Melting Pot (655)

3 mi. 97,471 $30-$39m (112) 25-34 (149) No children (121) College Graduate (134)

Striving urban melting pot (464)

3 mi. 22,473 $100,000+m (207) 55-64 (134) No children (104) College Graduate (226) Surburban Aristocrats (660)

3 mi. 49,143 $100,000+m (140) 18-24 (119) No children (117) College graduate (209)

Midscale Suburban Mix (694)3 mi. 12,523 $40-49m (124) 65+ (114) No children (114) Some college (112)

Existing Locations

Households Age Income Children Education LifeStyle

1:Anchorage, AK 3 mi. 28,810 18-24 20,000-39,999 <6,6-17 Some College Struggling Small City Lat:61.216321 5 mi.57,440 18-24 75,000-99,999 <6,6-17 Some College Cosmopolitan Suburbs Long:149.888066 7 mi. 77,894 18-24 75,000-99,999 <6,6-17 Some College Cosmopolitan Suburbs 2: Tacoma, WA 3 mi. 50,123 18-24 30,000-39,999 <6,6-17 Some College Midscale Suburban

Mix Lat: 47.217747 5 mi. 112,209 18-24 30,000-39,999 None Some College Struggling Small City Long: 122.46757 7 mi. 153,225 18-24 30,000-39,999 none Some College Cosmopolitan Suburbs 3: Raleigh, NC 3 mi. 18,212 25-34 75,000-99,999 <6 College Graduate Cosmopolitan Suburbs Lat: 35.904365 5 mi. 38,638 25-34 100,000+ None College Graduate Cosmopolitan Suburbs Long:78.940735 7 mi. 69,189 18-24 Under 10,000 None College Graduate Struggling Small City 4: Providence, RI 3 mi.82,103 18-24 Under 10,000 <6,6-17 Grade School Struggling Urban Mix Lat: 41.826159 5 mi. 162,594 18-24 10,000-19,999 None Grade School Struggling Urban Mix Long: 71.415627 7 mi. 206,813 18-24 Under 10,000 None Grade School Struggling Urban Mix 5: Austin, TX 3 mi. 33,784 18-34 30,000-39,999 None College Graduate Striving Urban Melting

Pot Lat: 30.257963 5 mi. 95,370 18-24 Under 10,000 None College Graduate Striving Urban Melting

Pot Long: 97.807077 7 mi. 171,788 18-24 Under 10,000 None College Graduate Striving Urban Melting

Pot 6: San Antonio, TX

3 mi. 20,650 18-24 100,000+ <6 College Graduate Affluent Suburbs

Lat: 29.589291 5 mi. 55,673 18-24 100,000+ <6 College Graduate Affluent Suburbs Long: 98.619622 7 mi. 124,976 18-24 100,000+ <6 College Graduate Striving Suburban Mix 7: San Jose, CA 3 mi. 88,959 35-44 100,000+ <6 College Graduate Urban High Society Lat:37.325051 5 mi. 201,981 35-44 100,000+ <6 College Graduate Urban High Society Long:121.942508 7 mi. 363,732 35-44 100,000+ <6 College Graduate Urban High Society 8: Charlotte, NC 3 mi. 33,803 65+ 100,000+ None College Graduate Prosperous Suburbs Lat: 35.151410 5 mi. 96,864 25-34 100,000+ None College Graduate Prosperous Suburbs Long: 80.828606 7 mi. 161,747 25-34 100,000+ None College Graduate Prosperous Suburbs Minimums 3 mi. 18,212 18-24 Under 10,000 None Grade School Struggling Small City 5 mi. 38,638 18-24 Under 10,000 None Grade School Struggling Small City 7 mi. 69,189 18-24 Under 10,000 None Grade School Struggling Small City

Location Requirements: Dillard’s Inc.

CriteriaTypical leased site

Minimum household countDemographic indices

Household income level Age Children Education attainment

FindingsEnclosed shopping mall

(Google Earth)6 mile radius: 43,000Higher income, mature

families $100,000+ 25-34 <6 College graduate

Location Requirements: Nordstrom

Criteria:Typical leased spot

Demographics:Households: above 18,000Age: 18-24Income: Under 10,000Education: Grade SchoolStruggling Small City