DepartmentStore

Macy's is raising its earnings outlook for the fourth quarter and full year due to a strong holiday season and says it will double its quarterly dividend to 20 cents a share. The retailer is also increasing its share repurchase program by $1 billion. The announcements came as the department store operator reported Thursday that a key measure of its December sales rose faster than analysts had expected.

Macy's has set out to create another miracle on 34th Street with a $400 million revamp of its fabled flagship store in New York City. The planned makeover includes a new focus on upscale food with 22 eateries, and an emphasis on technology that reflects Macy's courtship of Generation Y.

Last month, I walked into a Wal-Mart store for the first time in my life. I'm from San Francisco, a place proud for its efforts to keep big-box stores out of city limits (Target is acceptable, although the nearest one is in South San Francisco, officially a different city). I have always tried to...