In an era where retail giants are reinventing themselves to survive and thrive, William Dillard II stands as one of the industry’s most enduring and quietly influential leaders. As CEO and Chairman of Dillard’s Inc., he has guided the American department store chain through decades of shifting consumer preferences, economic downturns, and the relentless rise of e-commerce. While Dillard’s is based in the United States, the company’s story and Dillard’s leadership offer valuable lessons for Australian investors, retail professionals, and anyone interested in corporate strategy.
Dillard’s began as a single store in Arkansas in 1938, founded by William T. Dillard. William Dillard II, the founder’s son, took the reins in 1998 and has served as CEO and Chairman ever since. Under his stewardship, Dillard’s has transformed from a regional player into one of the largest department store chains in the U.S., with nearly 250 locations and a reputation for strong balance sheet management.
While many department store chains have faltered—think Sears or Myer’s recent struggles in Australia—Dillard’s has remained profitable, even as competitors close stores. William Dillard II’s leadership is often described as understated but fiercely focused on operational discipline. Here’s how he’s set Dillard’s apart:
For Australian retailers and investors, these lessons resonate: prioritise balance sheet strength, own your assets where possible, and don’t chase every trend at the expense of what makes your business unique.
The first half of 2025 has been turbulent for global retail. Australian inflation has cooled but remains above target, and consumer sentiment is cautious. In the U.S., Dillard’s reported another profitable year, with net income outpacing peers and a share price that has outperformed much of the retail sector. William Dillard II’s approach—eschewing over-expansion, focusing on core markets, and maintaining family control—has again proven resilient.
For Australian investors watching from afar, Dillard’s is a case study in the value of long-term leadership and prudent management. While Dillard’s does not operate stores in Australia, its performance is often cited by analysts reviewing department store models, including David Jones and Myer. With private equity interest swirling around Australian retail and questions about the future of department stores, William Dillard II’s strategy provides a compelling alternative to slash-and-burn turnarounds.
While William Dillard II maintains a low profile in the media, his consistent results and disciplined approach have made him a favourite among value investors. For Australian business leaders and shareholders, the Dillard’s story is a reminder that retail success is not about chasing fads but about knowing your customer, protecting your margins, and planning for the long haul.