Department Stores NAICS 455110

Sep 3, 2025 - Dillard’s Buys Texas Mall

• In August, regional department store chain Dillard’s partnered with mixed-use developer Trademark Property to buy the Longview Mall in eastern Texas from WPG, according to Retail Dive. The report noted that Longview is considered an “evergreen mall,” due to being the only enclosed regional mall in a 45-mile radius and a critical part of the region’s retail landscape, attracting 3.7 million visitors annually. The new owners plan to upgrade the property and the tenant roster. Analysts see the potential for future mall investments by Dillard’s, depending on the success of its Longview Mall location. According to Brynn Feller, an SVP at commercial real estate firm Northmarq, “For Dillard’s, I think this is a bit of a case study. I don’t think that for them this is a playbook that they’ve rolled out — I think they’re developing it in real time. And I think it’s potentially brilliant.”
• Indicators measuring the collective mood of US consumers showed a downward turn, with consumer confidence and consumer sentiment levels falling. Consumer confidence levels, an indicator of discretionary expenditures, declined in August 2025, month over month, falling by 1.3 points, according to the Consumer Confidence Index. Consumer confidence levels were lower in August, but remained similar to levels in the past three months, according to The Conference Board, which publishes the monthly index. August’s loss can be attributed to consumers under 35 years old while confidence levels rose for consumers over 55. In addition, the consumer sentiment index from the University of Michigan dropped in August 2025 for the first time in four months. The index fell to 58.2 in August data from 61.7 in July. Year-ahead inflation expectation results were higher monthly, as consumers convey lingering anxiety about prices amid tariff impacts. The index serves as a predictor of consumer spending as it indicates consumers’ perception of their financial prospects and the broader economy.

• The Retail Trade Industry is one of 11 industries reporting growth in July’s Services ISM Report on Business. Executives in the Retail Trade industry reported an increase in business activity, prices paid for materials and services, employment, and inventories, along with faster supply deliveries and a decrease in order backlogs in July. Additional industries reporting growth during the period were Transportation & Warehousing; Wholesale Trade; Finance & Insurance; Other Services; Management of Companies & Support Services; Public Administration; Real Estate, Rental & Leasing; Information; Utilities; and Health Care & Social Assistance. Seven industries reporting contraction during the period were Accommodation & Food Services; Construction; Mining; Educational Services; Agriculture, Forestry, Fishing & Hunting; Arts, Entertainment & Recreation; and Professional, Scientific & Technical Services. Overall, economic activity in the services sector grew in July for the second consecutive month, with the Services PMI registering 50.1%.
• According to a UBS report released in June in Retail Dive, off-price retailers had increased their share of sales by 2.1% year over year in Q1 to 66.6% on a rolling four-quarter basis. Over the last five years, the figure represents growth of 11.1% for off-price retailers. According to UBS analyst Jay Sole, “Off-price retailers have been major share gainers over department stores, in terms of both sales and EBIT dollars, over the past 10+ years.” Some traditional department stores are investing in their off-price locations like Nordstrom’s popular Nordstrom Rack, which has been a growth engine for the company. The USB data revealed that off-price inventory rose 13% year over year, compared to 1% growth at department stores. Sales in Q2 are expected to rise 6% for off-price stores compared to a projected decrease of 6% for department stores, per USB.