What do you mean that was never meant to be? Most likely, if Barneys had been scouting Atlanta for so long (and determined to open), they would have done so. They wouldn't simply wait for a spot to open up at Phipps, even if Belk didn't buy Parisian, that space wasn't going to open up soon. Barneys looks at multiple locations in a city. Moreover, I highly doubt no one is shopping at Belk at Phipps. Even the most upscale shopping centers have their lower-end department store, and those perform fine, if not very well. I don't really understand what there is to "misunderstand" about the Atlanta market. The market isn't particularly special right now. It's not experiencing a huge influx/revival of luxury retailers in the present (like Dallas, Chicago, Boston, Phoenix, San Diego, all of which have dozens of ultra-luxury stores that have opened in 2007 and more planned to open in 2008.) Even the retailers signed at SOB aren't expected to open until the fourth quarter of 2009.
I think you underestimate how well Belks can perform at Phipps. If the shoppers at Phipps were truly 100% luxury/ultra-luxury, Phipps/Lenox wouldn't have seen the flight of several of their highest-end retailers, citing the immaturity of the market and low sales. Phipps/Lenox is such a large shopping destination for the Southeast and its not just a luxury destination. There are still many affordable stores there and what makes it so popular is the sheer number of diverse stores at one location.
You've never shopped at a designer store or high end dept store if you didnt know that they all have sales too. In fact, the Barneys annual warehouse sale is probably better than any Belk sale. Manolo Blahniks from 500 down to 50, Armani suits for 250.