Dive Brief:
- Alongside other retailers updating their merchandise offerings, Dillard’s has debuted The Coterie Shop, a new online and in-store concept featuring four luxury designers, the department store announced Friday.
- The shop will feature special occasion and casual attire from Abbey Glass, Buru, Crosby by Mollie Burch and Fanm Mon, the company said.
- Dillard’s is introducing The Coterie Shop at select locations in Alabama, Arkansas, Arizona, Florida, Georgia, Kentucky, Louisiana, North Carolina, Oklahoma, South Carolina, Tennessee and Texas.
Dive Insight:
Dillard’s is updating its merchandise offering as more department stores diversify their own product assortments.
Earlier this month, Macy’s introduced a private label loungewear and sleepwear line, State of Day, as part of a broader merchandise revamp. J.C. Penney over the years has launched new private labels as well, including Mutual Weave for men, and the department store partnered with Prabal Gurung last year on a collection for women. Last fall, Kohl’s partnered with Nine West to create an adaptive apparel line, including blazers, blouses, tops, dresses and pants.
“We are beyond excited to introduce The Coterie Shop to our customers,” Dillard’s vice president of merchandising, Alexandra Dillard Lucie, said in a statement. “Each of our featured brands was founded by incredible, talented artisans running their own businesses and creating beautiful, captivating pieces while living busy and fulfilling personal lives.”
Dillard’s is adding new collections to the mix following a difficult 2023. The department store chain reported total retail sales declines for three consecutive quarters. Total retail sales dipped 4% year over year in Q1 and 3% in Q2, according to its quarterly earnings reports. Most recently, the retailer in November reported a third-quarter retail sales decline of 6% from the previous year to $1.4 billion.
Analysts were caustiously optimistic about the department store early last year. In April, S&P Global Ratings upgraded Dillard’s rating from BB- to BB+ and predicted free operating cash flow and “sustained profitability.” However, the ratings firm said the retailer is vulnerable to certain trends, including consumers spending less on discretionary items, competitive online prices and a downturn in in-store traffic.
