American department store chain Dillard's has confirmed it will permanently close its anchor location at The Shops at Willow Bend in Plano, Texas, with the 240,000-square-foot store set to go dark by mid-January 2026.
Mall Redevelopment Forces Closure
The 87-year-old Arkansas retailer quietly announced the closure during its previous earnings report, revealing that 93 employees have received layoff notices connected to the shutdown. However, unlike many retail closures currently affecting the industry, Dillard's decision isn't driven by poor performance but rather by the mall's complete transformation.
Centennial, the property owner of Willow Bend, has launched an extensive redevelopment plan that will see large portions of the aging shopping centre bulldozed. The ambitious project will replace existing retail space with apartments, restaurants, and a modern retail mix, forcing out more than 60 stores in the process.
Among the other casualties is a nearby Neiman Marcus, which has scheduled its final day for January 2027. The comprehensive overhaul is expected to take three years to complete, with construction wrapping up in 2028.
Dillard's Bucks Industry Trend
This closure comes despite Dillard's demonstrating relative strength in a struggling department store sector. In its most recent quarter, the company reported $1.4 billion in sales – representing a three percent increase from the same period last year.
William Dillard, the company's CEO and son of the founder, expressed satisfaction with the company's performance, noting they were "happy to see sales strength continue through the third quarter". The positive results were driven particularly by strong demand for women's shoes, lingerie, and accessories.
Nevertheless, this marks the third consecutive year that Dillard's has shuttered a store location. The company currently operates 272 locations nationwide, significantly down from its peak of 342 stores in 1998. Texas remains an important market for the retailer, hosting 55 of its remaining stores.
Broader Retail Landscape
Dillard's situation contrasts sharply with the wider retail environment, where American retail is experiencing a historic wave of pullbacks. Nearly 15,000 stores are expected to close this year alone – almost double last year's record of approximately 8,000 closures – as chains aggressively cut costs, reduce real estate footprints, or file for bankruptcy.
Several prominent retailers have announced significant closures recently. Saks Global plans to close nine Saks Off Fifth shops by early January as the company deals with mounting debt concerns, leaving only 79 stores operational.
Torrid, once favoured by celebrities like Rebel Wilson and long considered a leader in plus-size fashion, announced plans this year to shutter 180 stores. Claire's, the 1,500-store chain famous for ear piercings and tween jewellery, declared Chapter 11 bankruptcy in August for the second time in its history.
Even established giants like JCPenney are shrinking their presence, with the 123-year-old retailer putting seven mall locations on the chopping block this year.
Founded in 1938 by William T. Dillard with a simple formula of fashion, service and value, the company expanded aggressively across the Southern and Midwestern United States through the 1970s, 80s and 90s. Despite the current challenges facing brick-and-mortar retail, Dillard's continues to maintain its position as one of America's most influential department store chains after nearly nine decades in business.
