Dillard’s has announced that they will be closing the Hutchinson store sometime in June because of poor sales.
Company Spokeswoman, Julie Bull, told us the 65-employees, or associates as she called them, who wish to continue with the company can look to transfer to one of their two Wichita stores.
Employees were told of the closing this morning, according to some who spoke of the announcement.
Company officials classified the Hutchinson store as under-performing at a time when the company over-all was celebrating a record 4th quarter in 2011.
Dillard’s Chief Executive Officer, William T. Dillard, II, stated, “We are pleased with our progress in 2011 where we delivered a record setting performance.
They cited a 3% increase in comparable store sales, control of advertising, selling, administrative and general expenses (“operating expenses”) which declined 40 basis points of sales, repurchase of $98.8 million (2.1 million shares) of Class A Common Stock.
Dillard’s reported income for the 13 weeks ended January 28 of $141.5 million, or $2.77 per share. Included in net income for the 13 weeks ended January 28, 2012 is a $44.5 million pre-tax credit ($28.7 million after tax or $0.56 per share) related to the settlement of a lawsuit with JDA Software Group. Excluding this credit, the Company would have recorded net income of $112.8 million or $2.21 per share marking a record-setting fourth quarter earnings per share performance.
But, apparently that didn’t include the Hutchinson store.
Wednesday’s announcement is a big blow for the Hutchinson Mall who is already suffering from empty spaces. The mall is also loosing Radio Shack which is moving to a location on East 17th near Starbucks.
There have also been rumors Wednesday that Sears, one of other three anchor stores of the mall may be leaving as well. That included the rumor that they would be moving to the K-Mart building on east 30th. We haven’t been able to confirm that thus far, and at this point is only rumor.
If that were true, JC Penney would be the only anchor store in the mall, at the west end and Hobby Lobby still at the east end.
There is also the prospect of Kohl’s coming to Hutchinson in the near future. They are planning on building a store on the northwest corner of 17th & Lorraine.