Dillard’s Inc. (DDS), in a move to grow its online store at www.dillards.com, has invested about $4 million in Acumen Brands, a Fayetteville, Arkansas-based ecommerce company. Acumen Brands currently operates twelve online retailers supported by proprietary software and advanced fulfillment systems.
Under this strategic agreement, Dillard’s and Acumen will put their resources together for the betterment of both Dillards.com and Acumen’s twelve online sites. As per the deal, Acumen will provide technological marketing services while boosting Dillard’s online charisma.
In return, Dillard’s will offer the services of its Vice President Kent Burnett, who will provide strategic guidance while serving on Acumen’s board. At Dillard’s, Mr. Burnett, as a senior executive, is in charge of information technology and ecommerce.
Dillard’s, a leading fashion apparel, cosmetics and home furnishings retailer,is continually working to expand its online presence as evident from its recent announcement of opening a new Internet Fulfillment Center in Maumelle, Arkansas, in spring 2012. Further, its partnership with Acumen marks a significant progress on this front.
Founded in 2009, Acumen now offers uniquely branded storefronts for a variety of professions and lifestyles including medical uniforms (www.scrubshopper.com), work wear (www.toughweld.com), and western wear (www.countryoutfitter.com).
Based in Little Rock, Arkansas, Dillard’s Inc. is a large departmental store chain, featuring fashion apparel and home furnishings in the United States. Dillard’s, which competes with Macy’s Inc. (M) and J. C. Penny (JCP), operates 288 department stores and 16 clearance centers in 29 states. It also has an e-commerce website at www.dillards.com.
Dillard’s shares maintain a Zacks #1 Rank, which translates into a short-term Strong Buy rating. Our long-term recommendation on the stock remains Outperform.
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