Page 142 - 100 Great Business Ideas: From Leading Companies Around the World (100 Great Ideas)

DILLARD DEPARTMENT 'SN OI1DVN I 39433AL1VAO N NI3H 1

STORES USES PRICING AND

TECHNOLOGYTO BEATTHE

COMPETITION

A lot of so-called industry experts didn't give
Dillard Department Stores much of a chance to suc-
ceed when it came time to compete in the big leagues. Oh its strat-
egy was ok for the back-water towns where it originated, but not
in the big cities. Nothing could have been further from the truth.
Dillard understands the needs of the 1990s consumer, and satis-
fies those needs. It provides moderate to high priced goods at
reasonable prices, and provides convenience, service and quality.
Technologically based process innovations are a major ingredient
in Dillard's success. It uses an on line information system net-
worked to every company point-of-sale register to track purchases,
inventory levels and sales person performance. Several times a
day, company executives search the company's information base
to see if Liz Claiborne's new line is selling as well in Dallas as had
been anticipated, or to determine how many pairs of a new shoe
style were sold in Orlando.

Salesperson performances are tracked by computer. Those who
meet quotas receive rasies. The company works to improve the
performances of those who don't. Continued failure to meet quo-
tas results in dismissal. Managers too are judged by sales. Sales
managers spend a lot of time walking the floor and talking to cus-
tomers like Marcie McCauley of St. Louis who considers herself
the "queen of shoppers." When she wanted to buy her husband
some shirts, she chose Dillard. Why, "because they always have
the selection I want." Marcie continues, "They carry a lot of brands
other Midwestern stores don't have and the largest shoe selection
(50,000 pair) I've ever seen." Dillard's sophisticated information
system helps make such inventories possible. The firm knows
what is selling and what will sell.

Dillard's technology also enables it to get merchandise into stores
quickly. Most stores call or write their vendors to restock certain
items, but using electronic data interchange with 187 of its suppli-

CONTINUES ON PAGE 128

127