New acquisition by Belk

[Aporkalypse]

Belk is more like Pontiac than Chevrolet. Now, JCPenney, that's a Chevrolet!

Car analogies aside, if Belk can get the right vendors to commit to selling in the former Parisians, nobody will be disappointed. They're not going to throw that power away.

I think Nordstrom will go into old Parisian mall locations in Charleston and possibly Chattanooga. Not Columbia though; that development is nice, but it's doubtful they're interested in Richland Mall.

Pontiacs are a step up from Chevrolets?

[DigitalSky]

Loving the car analogies

Anyway, take a look at this: Hamilton Place Mall, Chattanooga, TN

Could we see 3 Belk Stores? http://www.tfponline.com/absolutenm/templa...4&zoneid=41

[kayman]

I have a feeling Belk is in for a big surprise and stormy future, no lie. They have just shot themselves in the foot just to get more stores in AL, GA, TN, MI.

[StevenRocks]

I have a feeling Belk is in for a big surprise and stormy future, no lie. They have just shot themselves in the foot just to get more stores in AL, GA, TN, MI.

So I guess when Rich's sold out to Federated in 1976, they shot themselves in the foot? How about when Federated took over Macy's in '94, they shot themselves in the foot too? And when Rich's coverted to Macy's? And Pizitz got bought out by McRae's? I guess there weere some bullets there too?

This provincialism disguised as "fact" is unproductive...just because a store gets bought out that doesn't mean everything's ruined.

The big growth market with the Parisian aquisition is Alabama and metro Atlanta. In Tennessee, the net gain is only one store, since the Parisian stores in Knoxville and Chattanooga will likely be sold to other retailers, as will the Michigan and possibly the Indiana and Ohio stores.

Belk is not taking this purchase lightly. If the naysayers would get over their prejudices and give Belk a chance to succeed or fail, I think the end result will please nearly everyone involved.

[Miesian Corners]

^I agree with most of what you said, Steve. I only have one real concern, Belk does (indeed) have an image problem in Georgia, Alabama and Tennessee. Do you think the Belk's really comprehend that the typical Atlanta shopper is going to "get" that Belk at Phipps is different than the one in Conyers? I fear that trying to be all things to all people in former Parisian markets might backfire. I hear all the time from folks who move to Charlotte from Atlanta or Nashville that they can't belive that Belk is one of the nicest stores here. They only know of the crappy ones in strip malls back home. How do you think they'll overcome this?

[mallguy]

I was talking today with one of my friends in Birmingham, who mentioned that the only time he had heard of Belk was when the closure of the one at Century Plaza was announced, so he thought it was like a Beall's, although he didn't really know what Belk was. He also figures that the Summit is going to pot, with Parisian becoming a Belk and the Saks likely closing.

If even a fraction of Birmingham shoppers have that view, that'll be a tough road. Brand and image, again, are important things that shouldn't be just thrown away. Federated was smart enough to keep the Rich's name around for a long time perhaps for that reason.

[kayman]

I was talking today with one of my friends in Birmingham, who mentioned that the only time he had heard of Belk was when the closure of the one at Century Plaza was announced, so he thought it was like a Beall's, although he didn't really know what Belk was. He also figures that the Summit is going to pot, with Parisian becoming a Belk and the Saks likely closing.

Instead I think Bayer is going to find away to get rid of Belk out of The Summit just like they did Crepes Eggs-Sentera and couple of others tenants that didn't cooperate with them or their master plan. I wouldn't be surprised if a Dillard's winds up at in the current Parisian space if Bayer has their way. Also, if the Saks closes it will just be replaced with a Nordstrom, Neiman-Marcus, or even Bloomingdale's. It is a known fact for years that for years all of those retailers (did including Lord & Taylor before their financial troubles) was in a bidding war to locate at that center due to its proximity to Mountain Brook (the one of wealthiest municipalities in the nation with a per capita income of $259,085.). Bayers isn't going to let their flagship Summit center that put them on the retail map tank in anyway shape or form. They have plans to build an office building into that center, so you know they are have or is creating a Plan B. Finally, don't be surprised if Bi-Lo and Bruno's keep messing up if Bayer buys out the Bruno's/Vincent Market lease (like Colonial did at Brookwood) and replaces it with a Publix, another Whole Foods, or more upscale retailers.

If even a fraction of Birmingham shoppers have that view, that'll be a tough road. Brand and image, again, are important things that shouldn't be just thrown away. Federated was smart enough to keep the Rich's name around for a long time perhaps for that reason.

You are not lying. A sudden change will put the average consumer into "brand shock". 18 months is not enough time for the consumer to adjust to this major change with such a well-known and highly regarded brand. It would be wise to keep them as 2 separate brands as Federated does with Macy's and Bloomingdale's (although you know they won't ).

[peaceloveunderstanding]

Mountain Brook (the one of wealthiest municipalities in the nation with a per capita income of $259,085.)

Per capita income for Mountain Brook AL: $59085

Median Household income: $100k.

http://censtats.census.gov/data/AL/1600151696.pdf (PDF)

A quick search makes it look like you got your numbers from wikipedia which goes to show how accurate it is sometimes.

It is certainly a wealthy city, but a far cry from a per capita income of $260k.

Sorry, but misinformation always bugs me...

-----------------

I didn't think Parisian at Phipps was any nicer than a nice Belks. I bought a $8 of sunglasses there.

[Durhamite]

LMAO...I thought Parisian was a carpet store or something....just goes to show how regional some things are. If I go to any mall, it's generally Southpoint in Durham and most of the stores are pricey to me (especially Belks & Nordstroms). The median household incomes in Chapel Hill, South Durham and Cary are strong but SP seems to draw outside of the Raleigh/Durham area.

Not a high end shopper as you can tell, but I will refer a book to read:

THE MILLIONAIRE NEXT DOOR!

You might catch them at a Belks but not South Park or South Point, maybe Rockingham or Darlington.

[Miesian Corners]

^Its not the millionaire's Belk has to worry about. Its status conscious middle- to upper-middle income shoppers (read: Myers Park, Mountain Brook, Buckhead housewives) that are at stake. Those consumers LIKE to shop at a place because of what others will think when told of where that fabulous new purse came from. Its just one of the things taught to all Converse and Hollins grads.

[StevenRocks]

^I agree with most of what you said, Steve. I only have one real concern, Belk does (indeed) have an image problem in Georgia, Alabama and Tennessee. Do you think the Belk's really comprehend that the typical Atlanta shopper is going to "get" that Belk at Phipps is different than the one in Conyers? I fear that trying to be all things to all people in former Parisian markets might backfire. I hear all the time from folks who move to Charlotte from Atlanta or Nashville that they can't belive that Belk is one of the nicest stores here. They only know of the crappy ones in strip malls back home. How do you think they'll overcome this?

It's going to take a Herculean marketing effort on Belk's part to get the message out that the new stores are better than the small-market locations. It'll take a media blitz, some serious customer service training and solid merchandising, but I think they'll be able to do it

It's not impossible though. When Belk shifted from hayseed dry goods stores to modern department stores in the '70s, they pulled out the stops and they're better retailers for it.

Brand and image, again, are important things that shouldn't be just thrown away. Federated was smart enough to keep the Rich's name around for a long time perhaps for that reason.

Rich's actually is good example of how not to handle a brand changeover. Federated closed down the poorly-performing Macy's in those markets, grafted the Macy's name onto Rich's (insisting nothing else would change) and then unceremoniously dumped Rich's. They learned their lesson with the May Company conversion and seamlessly integrated the new name and merchandise into the old stores.

[Alababy]

Here's a story from the B'ham News today, FWIW.

http://www.al.com/search/index.ssf?/base/l...life&coll=2

It was accompanied by some bulleted comparisons of Store Credit Card Rewards, lists of brands each carry, and store amenities. Both the brand list and amenity list were comparing Parisian Riverchase with Belk South Park.

[mallguy]

Here's a story from the B'ham News today, FWIW.

http://www.al.com/search/index.ssf?/base/l...life&coll=2

It was accompanied by some bulleted comparisons of Store Credit Card Rewards, lists of brands each carry, and store amenities. Both the brand list and amenity list were comparing Parisian Riverchase with Belk South Park.

That's nice but an article featuring the Westgate Mall Belk or most any other Belk vs. any Parisian would have a different tone (e.g., "Belk stores are mid-market so they'll keep a lot of the nice Parisian brands but will be adding merchandise among various high and low price points"). Didn't mention that the SouthPark Belk has a Levi's display in addition to Ferragamo.

[turbocraig]

Nordstrom sells Levis too. Does that make them lower-niche than Parisian?

[StevenRocks]

That's nice but an article featuring the Westgate Mall Belk or most any other Belk vs. any Parisian would have a different tone (e.g., "Belk stores are mid-market so they'll keep a lot of the nice Parisian brands but will be adding merchandise among various high and low price points"). Didn't mention that the SouthPark Belk has a Levi's display in addition to Ferragamo.

It's not exactly shameful to feature Levi's. It's a popular brand and is considered the standard that other jeans are judged by. Right beside the Levi's display are any number of high-end jeans lines that compare to and surpass anything Parisian carries.

Large Belk stores routinely feature premium cosmetics, high end handbags, and designer apparel. I bought my Mom a St. John brooch from Belk Friendly Center in Greensboro, and I buy Lacoste polos from Belk Charlottesville Fashion Square in Virginia and my Kiehl's products at Belk SouthPark. Belk's selection is nothing to sneeze at, to be sure.

[Alababy]

Actually, it was first "nice" article the News has written in regard to Belk.

The Lifestyle writer has done stories this year on Bridal showers, wedding gifts, baby showers, and back to school. They usually mention or picture products from various retailers. Not a single one had Belk in it--Macy's, Bromoberg's, Parisian, LNT, Bed Bath & Beyond, and even TJMaxx, but no mention of Belk.

[shrek05]

^Interesting article. What stuns me is that there can be such a huge difference between the top Belks and the common Belks. One is on par with Nordstrom, the other like JC Penney.

StevenRocks, do you have any pictures of Belk's interior at SouthPark?

**Levi's has some really nice brands in jeans. Most that are sold at Nordstrom go for $170/slack minimum**

[JerseyBoy]

I have been to Belk's in Raleigh, Durham, Charlotte, Winston-Salem, and Greensboro and can say they are a very decent chain for what they offer. The stores are very clean and offer great merchandise while also offering some lower-tier items for people who live within their means. I have never been dissapointed with a Belk............in North Carolina. I have seen some of these stores in Georgia, Tennessee, and in Mississippi and I will tell you they were nothing like the ones in North Carolina and look like trailer trash compared to the elite ones we're seem to be accustomed to in NC. And, this is bad on Belk's part but then again it's not because you tell me how you're going to market $200 jeans and $300 handbags in a one horse town where the average residential income is less then perfect. It makes sense to offer your best at the wealthy stores and market your least desirable products at low performing lower income stores. But, then again it never hurt to make a good impression everywhere. As Steven has mentioned, all stores have A,B,and C stores including Nordstrom, Neiman Marcus, and Bloomingdale's. I have been to some pretty "crappy" Neiman Marcus' in my day, and in this I mean they were really upscale but were kind of crappy like they didn't offer the Prada and Dolce and Gabbana boutiques. I expect this will be a good buyout but Belk is going to have to make the upscale Parisians, upscale Belks to impress the Parisian regulars.

[StevenRocks]

StevenRocks, do you have any pictures of Belk's interior at SouthPark?

I wish I did. SouthPark mall is hard to photograph because of really aggressive (and nosy) security.

I can tell you that store features a wine shop, restaurant, gourmet foods, tuxedo rental, optical department, day spa, fur salon and large vendor shops for Ralph Lauren, Cole Haan, Kate Spade, Coach, St. John, Kiehl's, Bobbi Brown, Carolee, Origins and many other brands. They used to have a Louis Vuitton counter until the store in the mall proper opened.

[JerseyBoy]

I wish I did. SouthPark mall is hard to photograph because of really aggressive (and nosy) security.

I can tell you that store features a wine shop, restaurant, gourmet foods, tuxedo rental, optical department, day spa, fur salon and large vendor shops for Ralph Lauren, Cole Haan, Kate Spade, Coach, St. John, Kiehl's, Bobbi Brown, Carolee, Origins and many other brands. They used to have a Louis Vuitton counter until the store in the mall proper opened.

Ahh, if only all Belk's were that way.

[memphian]

I think the article answered the question that a lot of people have been asking. When Belk took over the Proffitt's location in Bham they dropped the few innovations that Proffitt's took pride in that also keot the store unique. Sometimes you have to take a hit in one area to keep your status as a destination. Adjusting the special things is one thing but completely eliminating them is another. Also the article mentioned that they made the Riverchase location a less-than-stellar store by offering values and such. That's pretty much code for its a big B or C type of store. What makes you think any of the others will be any different? Obviously Belk has not thought enough of the Bham consumer to offer them anything upscale.

They may want to rethink their strategy before they race into town. If they truly offer a Southpark experience that'll be one thing but the article, specifically the part where the Belk guy says that the SPark is uncommon leads me to believe we'll be seeing old man and old lady clothes very soon.

[StevenRocks]

That store at Riverchase has always been a turkey. Macy's dumped it because it was both oversized and unneeded with Rich's down the hall selling the same things, and Saks, Incorporated took it for Proffitt's mostly to block anybody else from coming into the market.

As a Proffitt's, it was a redundant store that probably would have been offloaded eventually because it was only appreciably better than the McRae's in the mall. In fact, it probably cannibalized as many customers from McRae's than it brought new customers to the mall.

The amenities were nice (and innovative), but they weren't enough to keep customers coming. Even Saks, Incorporated acknowleged the store was a work in progress.

It's not Belk's fault that moderate apparel sells better at that store.

[memphian]

It's not Belk's fault that moderate apparel sells better at that store.

You're absolutely correct. But that is a much bigger problem. Stores have moved away from educating the consumer on fashions and style so that's a self-inflicted wound. Now you cannot argue with me that the Riverchase Belk was probably a bad introduction of a full-line, large Belk to the Bham Market that will come back to haunt Belk as it transitions Parisian into the fold.

[StevenRocks]

You're absolutely correct. But that is a much bigger problem. Stores have moved away from educating the consumer on fashions and style so that's a self-inflicted wound. Now you cannot argue with me that the Riverchase Belk was probably a bad introduction of a full-line, large Belk to the Bham Market that will come back to haunt Belk as it transitions Parisian into the fold.

Retail has some really bad problems as an industry. Some of these problems have come from societal changes, others have come from the fetishization of high profits to justify business.

It's complicated.

Belk Riverchase Galleria can neither be justified or lambasted. It is what it is. They bought a turkey, and it may never be the store it needs to be. But Belk can recover if they do a better job at other locations.

[Alababy]

... and Saks, Incorporated took it for Proffitt's mostly to block anybody else from coming into the market.

As a Proffitt's, it was a redundant store that probably would have been offloaded eventually because it was only appreciably better than the McRae's in the mall. In fact, it probably cannibalized as many customers from McRae's than it brought new customers to the mall.

...

It's not Belk's fault that moderate apparel sells better at that store.

FWIW--Riverchase McRae's never operated as a full line store after the Proffitt's was opened. It pretty much immediately became a clearance center for Saks. It hurt all three--Rich's, Proffitt's, and Parisian--that customers could buy comparable stuff, even in season stuff at the McRae's, for pennies on the dollar. Funny thing was, except for when the stuff went $2 and $3 at the clearance store, the stuff was a better deal before transfer at the Proffitt's/McRae's clearance method of yellow dot 70% off clearance. Some items went UP in price when transferred to the Clearance Center.

Personally, I don't think Saks ever intended to have 2 Proffitt's/McRae's storefronts in the Galleria; I think that was a by-product of the dispute with Pizitz.

Belk, while you say they have pull-power with vendors in NC, had zilch with them in AL. There were likely big names that didn't have contracts with Proffitt's/McRae's and then would not come into the Riverchase Belk because of contractual obligations to Parisian/Saks.

Riverchase Galleria is still a big regional mall. People come from all around and stay at the Wynfrey to do back to school shopping, Christmas shopping, Black Friday, etc. It is a destination mall for a lot of people, and "if you stock it, they will come" is pretty true. While strip-mall Belk stores get everyday returning customers from the locals, the Galleria has a greater number of shoppers who only come 1-2 times a year. And they aren't coming to buy BTKids and private house labels.

That the Riverchase location you say does moderate priced business is in part because that's all that was ever in there. Saks wasn't going to work to put vendors in there that they could have since they were looking to sell. It [Profitt's] opened in October, and the deal with Belk was announced in April. I can't help but think that Saks moved Proffitt's-McRae's to the current building in order to make Riverchase look more attractive; hard to sell yourself when the building you're in is that small (for an anchor), a roof like a sieve, etc.

People here didn't "get" the whole Proffitt's-McRae's connection. They didn't understand that they were the same company, and with the whole McRae's-Pizitz debacle, they were leary of Proffitt's, a store whose name they had never heard. It did not help that McRae's card holders were not automatically given a Proffitt's card to replace their McRae's because they didn't "get" that they could use the them interchangeably, "because if everyone has been telling us Proffit's is McRae's under Proffitt's-McRae's, but I can still use my McRae's card here, why do I have to apply for a Proffit's card?" Had the Riverchase Proffitt's opened as a McRae's, it would have had an easier time keeping its clientele.