What: The Dillard’s 83-year-old department store business skyrocketed over 300% this year, making it one of the best-performing stocks on 2021.

Why it is important: The market capitalization of the 280-store chain has quadrupled to more than $5 billion since Jan. 1, far outpacing gains seen by much larger chains like Macy’s (up 138%), Kohl’s (up 25%) and Nordstrom (down 33%).

The Little Rock, Arkansas-based Dillard family – who own 7.5 million shares, giving them a 39% stake in the company – have seen the value of their shares go as high as $3 billion in November, up from $400 million a year earlier.

Dillard’s was founded in depression-era America by William T. Dillard, who got his introduction to the retailing business when he went to work at his father’s general store at age 12. After collecting a bachelor’s degree at University of Arkansas and an MBA from Columbia, he borrowed $8,000 from his dad to open his first store in Nashville, Arkansas in 1938. Before long, Dillard was opening stores all over the South, often in shopping malls, which were quickly gaining popularity among suburbanites. The chain went public in 1969, offering two classes of stock, meant to keep the family firmly in control. Five decades later and the company is still run by the family.

Analysts view Dillard’s as one of the survivors of the department store consolidation trend, as the founding family is very much still involved. Although Dillard’s stores may be considered old-fashioned, they are well cared for with a lot of attention to detail.

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