Belk at Phipps?!?

[shrek05]

^Heh, exactly. Phipps is nice, but its still no South Coast. Every mall has its mix of regularly-priced things, Phipps will be no different.

[StevenRocks]

Belk certainly isn't out to ruin the Parisian stores but Belk is Belk and runs Belk stores- I'd think that Belk buyers and execs would, due to years of working for Belk, be likely to make the Parisian stores into Belk ones, since Belk employees naturally think that Belk merchandising, presentation, etc. are what works. Thus Saddlebred clothes and Levi's will be added to former Parisian stores, not out of spite or anything, but because Belk people think that's what will work, as they've worked well for Belk for years. Sure, hopefully Belk buyers, etc. will keep the Joseph Abboud ties and the Tailor Byrd shirts, but the stores will likely have some low-brow clothes added in as well (just as Belk SouthPark has some low-end clothes), along with maybe some new high-end brands as well.

The low-end brands will only be added to stores Belk merchandisers think there's a market for them. Parisian did the same thing. Parisian in Tupelo wasn't merchandised the same as Parisian at Phipps because they understood that the cheap stuff wouldn't fly in midtown Atlanta and the edgy stuff wouldn't work in rural Mississippi. That's Retail 101, put the merchandise people want into the stores.

Belk SouthPark has some inexpensive clothes becaue (1) they sell and (2) it's a rather large store. There is room enough for diversity in a store that large. Parisian stores are typically about 1/3 the size of Belk SouthPark, so they'll be highly edited to reflect the tastes of their respective markets.

Heh. Name does a lot. Even if Belks at Phipps carries the same brand as Norstrom, a poor reputation associated with the name Belk will go far. People would rather be seen in Nordstrom purchasing that item than at "Belk." Of course, I've never seen how bad one of these "horrendous" Belks are, but in that Tennessean article, it looks pretty bad. IF that is Atlanta's preconceived notion of that department store...they will struggle regardless of what they sell when tryign to target the higher end shoppers.

Where you buy it is quite important , dont overestimate the superficial. Just cuz its the same brands doesn't mean anything.

Names and reputations can be built to greatness from nothing. When Pfiffer's and Blass in Little Rock merged to become Dillard's, nobody thought it could become a nationwide chain, but it did. When Sam Walton opened a small discount store in the middle of nowhere, nobody thought it could turn into the world's largest retailer, but it did. When the Nordstroms started a shoe store in downtown Seattle, nobody imagined it would become America's most popular specialty department store, but it did.

[shrek05]

Heh, ^thats different though. Obviously no one thinks their store will become a huge success but through proper management, advertising it can. Better examples would be, can Wal-Mart shed its image as a poor wage, cheap, thrift shop into a luxury destination? Can McDonald's turn itself into a classy burger joint that rivals In n Out? I mean, perhaps through much hard work and many years, but from the image Belk seems to have and I mean Ive seen some but not nearly as bad as the ones everyone is describing, turning it around will be very difficult. Maybe not impossible, but very difficult.

[StevenRocks]

Heh, ^thats different though. Obviously no one thinks their store will become a huge success but through proper management, advertising it can. Better examples would be, can Wal-Mart shed its image as a poor wage, cheap, thrift shop into a luxury destination? Can McDonald's turn itself into a classy burger joint that rivals In n Out? I mean, perhaps through much hard work and many years, but from the image Belk seems to have and I mean Ive seen some but not nearly as bad as the ones everyone is describing, turning it around will be very difficult. Maybe not impossible, but very difficult.

In n Out is classy?

Image makeovers have worked in retail before, and I don't see how Belk's image problems can't be overcome with the right marketing.

[shrek05]

In context, yes In N Out is classy. Huge cult following, clean interiors, merchandise (clothes) sells very well. Compared to McDonald's, In N Out is though to be on a way different level. Fresh veggies, meat, burgers grilled on the spot, french fries made when ordered...way different.

I don't think Belk's image problems can't be overcome. I just know it will be very hard for them and probably a small chance of success. Just curious, what are some major image makeovers in retail that come to mind? Im drawing a blank. Only one I can think of is Burberry overextended its market and was thought to be "non-exclusive" for awhile and went nearly bankrupt until it was saved in the mid 90s. But it had always been a rather luxury brand and it just made its products more exclusive.

I guess the best example is probably Lacoste but Lacoste never had a poor image prior to its remarketing in mid 90s and consequent surge in popularity and luxury status at the turn of the century.

[StevenRocks]

Just curious, what are some major image makeovers in retail that come to mind? Im drawing a blank

I can think of several:

JCPenney: Penney's was basically a small-town dry goods store before the '60s, when it embarked on a major makeover to become a lot like Sears and Montgomery Ward and opened large stores in malls all over America. By the '80s, that strategy had gotten old and malls got more sophisticated, so they evolved again to become a moderate department store, which is where they've been for the last 20 years or so.

Target: Prior to the '90s, Target was a run of the mill regional discounter, although still nicer than most. They undertook a major image overhaul and expansion plan that turned it into the go-to discount store for anybody that wanted some style with their bargains.

Bloomingdale's: Bloomingdale's was a nondescript regional department store chain in the '50s, even selling toilet paper at one point. Placed into more creative hands in the '60s, the store moved progressively upscale with fancier merchandise and marketing culminating in cultural ubiqiuty in the late '70s and '80s.

Gap: No more than a place to buy Levi's and t-shirts at first, Gap created brand identy by going private-label and marketing the hell out of themselves in the '90s. Sister company Banana Republic changed from a safari-themed mall store to spohisticated workwear purveyer over a ten-year span.

I have more if you want them

[mallguy]

Those are very good points but I think that Belk's challenge is far greater. Those other stores went from one price point to a price point not too far away. For example, given Bloomingdale's location at 59th & Lex, next to the very expensive parts of the Upper East Side and in the wealthiest ZIP code in the US, I'd think it was always a pretty nice store, even if it has gotten nicer (and now it sells carpet cleaning still, so there's always the odd item it sells).

But Belk is going from traditionally a low-end store to being apparently a very expensive store at some of the South's nicest malls, while maintaining Class C stores in small towns. Going from low-end to high-end is one challenge, and keeping low-end stores at the same time is another challenge; customers get confused.

I think Belk will be around for a long time to come, but every retailer makes mistakes, and buying Parisian is one of them.

[gs3]

In context, yes In N Out is classy. Huge cult following, clean interiors, merchandise (clothes) sells very well. Compared to McDonald's, In N Out is though to be on a way different level. Fresh veggies, meat, burgers grilled on the spot, french fries made when ordered...way different.

In N Out went through the roof of hipster status after Hilary Swank won the Oscar for Million Dollar Baby and her and Chad decided to go eat at In N Out after the Oscars and skip the parties. Photos of her munching on that burger were plastered everywhere. A couple of weeks after that, the big trend of wearing an In N Out T-Shirt underneath a black Prada suit blasted the scene. In N Out already had its cult following for years, but this PR sent them into orbit.....every developer in the nation wanted them to be in a development....they were smart and said no and stayed true to their West Coast roots. Maybe something similar could happen to Belk.

[shrek05]

Yea, those are good stories but all companies start at small and most start as a small local store (biggest story probably Wal-Mart.) But thats a different kind of "brand reimaging" to this. I would call those stories more like, good marketing leads to national success but not really changing its image. Belk, as said by mallguy, is going from generally low, inexpensive stores with a rather poor reputation in Georgia, to stealing shoppers from Nordstrom and Neimans, both of which have a prestigious rep.

^^Heh, yea In N Out has been in several media publications. It has always had a huge cult following in California and when the first one opened in Arizona back in 2000, there was a 4 hour wait for a hamburger and the dricve thru wrapped for nearly a mile around the parking lot.

[StevenRocks]

Those are very good points but I think that Belk's challenge is far greater. Those other stores went from one price point to a price point not too far away. For example, given Bloomingdale's location at 59th & Lex, next to the very expensive parts of the Upper East Side and in the wealthiest ZIP code in the US, I'd think it was always a pretty nice store, even if it has gotten nicer (and now it sells carpet cleaning still, so there's always the odd item it sells).

But Belk is going from traditionally a low-end store to being apparently a very expensive store at some of the South's nicest malls, while maintaining Class C stores in small towns. Going from low-end to high-end is one challenge, and keeping low-end stores at the same time is another challenge; customers get confused.

I think Belk will be around for a long time to come, but every retailer makes mistakes, and buying Parisian is one of them.

Joseph and Lyman Bloomingdale moved their New York store to 59th and Lexington to tap into the upscale market, but the store was considered a second-tier retailer where local domestic workers bought their uniforms as late as the '50s. It was more famous for its bargain basement than anything.

Bloomingdale's changed drastically because it realized customers would respond better to a more upscale format, and Belk is currently in the throes of this as well, which is basically an update on their 1970s evolution from small town dry-goods store to modern department store.

If Bloomingdale's isn't enough proof, consider Barneys New York, which went from cut-rate suits to a tony specialty department store in about a 20 year span.

Long story short: it can be done.

Further, in contrast to your shunning of diversity, Macy's is in the process of opening nationwide in a variety of locations that vary widely in size and income level, while pushing a relatively upscale merchandise mix. Dillard's operates in a similar manner, as does Bon-Ton. Why not Belk?

[mallguy]

Further, in contrast to your shunning of diversity, Macy's is in the process of opening nationwide in a variety of locations that vary widely in size and income level, while pushing a relatively upscale merchandise mix. Dillard's operates in a similar manner, as does Bon-Ton. Why not Belk?

Good point about Bloomingdale's. Whatever its past, today it sends a clear message: upscale products, "like no other store in the world". Dillard's and Macy's both also send clear messages: Dillard's sells moderately-upper price-point merchandise, and Macy's theme these days seems to be "affordable luxury" for middle America; as you say, it sells "a relatively upscale merchandise mix". Federated uses Bloomingdale's for high-end products and Macy's for less-expensive but still good-quality ones. No confusion there. When I see a Dillard's, Bloomingdale's or Macy's, I generally know what to expect when I walk in, although some stores can be somewhat nicer than others.

What's Belk's message? Upscale merchandise in nice malls in big cities? Down-home stores where people can buy $9.99 track suits after shopping at Wal-Mart? I'm confused. What's Belk's target customer base? The Eastland Mall crowd? The Rock Hill, SC crowd? Phipps Plaza shoppers? What should I expect when I walk into a Belk store? Saddlebred shorts or Burberry suits? Who knows? I'm not shunning diversity; I'm just questioning Belk's marketing strategy.

Brands need to have clear images. Belk doesn't have that. When I go for my beloved mall time, I don't have time to figure out what a store sells and then decide whether or not it's worth my time, potentially wasting time sorting through $9.99 track suits; I just head straight to stores that I know will sell what I want, like Nordstrom.

[shrek05]

^^I dont think your history of Bloomingdales is correct. I know very little about how it began in the late 1800s (I know it started out in the lower east side) I dont know what products they sold but they moved to the upper east side because that was where the wealthy were flocking. So, sometime before 1900s they began targeting the upper-crest of society. However after the turn of the century, I do know much more about the store. It was the first department store and the first major luxury retailer. The store covered a city block by 1910 and was one of the most coveted/prestigious stores in NYC by 1920. If you watch some silent films, short films from the 30s and 40s and very old movies depicting the Great Depression, the wealthy women showed everyone else they were wealthy by dressing in fur and carrying the famous "Big Brown Bag." Perhaps Bloomingdale's began as a second-tier store in the 1880s, but by 1920 and 1930, it was famous for luxury, so your date of 1950 is a little off.

Also, if Barneys did start as a second-tier suit retailer, it wasnt for long. They were established in the 20s and by 1950 it was the premiere place for imported European fashions, expensive fabrics, and high suits. I don't think Barneys really had a "poor reputation" among New Yorkers at the time either but I don't really know so, oh well.

But Barneys did a poor marketing campaign and lost much ground to Neimans and Saks and filed for bankruptcy in the 90s. If Barneys, at the time was already famous and had a loyal clientele, and still lost out to luxury competitors, can Belk compete with these stores that have already established their prestige?

^^The only problem with Belk is I dont think its good for a company to cover so many different levels under one name. I dont think its particularly good for attracting a core consumer base and getting loyal shoppers. Macy's and Dillard's are good examples in that they vary in store location, but not to that extent. You won't see one Macy's carrying no-name brand lingerie for $4 on clearance and then see another carrying La Perla. I don't think it will be very easy for Belk to attract a core of shoppers covering so many demographics. The best corporations sell a lifestyle, attracting a certain, target audience. Who is Belk going to target? In a Belk ad/commercial in Atlanta what would they put? It conflicts.

Im sure Belk has many smart people who have thought this over and will try to make it work...

[StevenRocks]

Anyone who knows me here knows that I wouldn't knowingly put untrue retail information online. My research isn't beyond reproach, but rest assured, if it's history, I'm not BS-ing if I take the time to type it.

Go to any book on the history of Bloomingdale's or Federated Department Stores and you will see that Bloomingdale's wasn't considered a premeir department store until the late '60s after a major image overhaul.

I'm not sure where your Barneys information comes from either, but it, too, is incorrect.

The Belk strategy works because it addresses each audience in an accessable, comfortable and profitble manner. It may not be as upscale as you'd like, but in every market they inhabit, with few exceptions, Belk reflects the upper end of fashion and home goods.

I don't know what they have to prove beyond the ability to run a profiatble, attractive store, honestly. It makes no sense to close down good stores in small towns just for image. It makes no sense to pass up oppurtunities at great real estate just because people aren't familiar with the best of the brand.

With all due respect, all I hear is provincial armchair quarterbacking about whay this sale shouldn't happen, very little of which is based in sound business practice. If it was a bad deal, I'd be the first to admit it, because I love retail too much to waste time on things that don't work. But it's not a bad deal. Not in the least.

Belk is a good company that knows how to run stores practically anywhere and that's nothing to be ashamed of. They've generally done right by their customers, their associates and their vendors. Nobody's perfect, but they're more than willing to try. Just because their stores aren't practically identical or they sell stuff that people in small towns can afford doesn't make them any less important than Dillard's, Macy's, Parisian and the like.

[mallguy]

It makes no sense to close down good stores in small towns just for image. It makes no sense to pass up oppurtunities at great real estate just because people aren't familiar with the best of the brand.

You make good points. I don't think Belk should close down its Wal-Mart strip center stores; I just think it should call those stores "Belk" and run them as Belk stores, and have the Phipps Plaza, Summit, etc. stores be Parisian stores, and run them as Parisian stores, with better merchandise and a better image. Just like Federated does with Macy's and Bloomingdale's.

[shrek05]

^^Sorry, you are right about the dates. I was incorrect about 1920, they became the premiere luxury retailer in the 50s and I was mistaken, they started exclusivelhy targeting the upper class in the 40s. What I meant to convey was prior to being an exclujsive luxury retailer (which somehow I stupidly turned into a paragraph with botched dates), they were a respected mid-level to upper mid level retailer (which I consider luxury for then) and quite successful at that. Taking dates out, what I was more emphasizing and not the date was the store wasnt considered low-class back then (in the early 1900s as I was saying earlier) and can't really compare to Belk's situation today. But what I meant to specifically argue is they were never seen as "low" "blue-collar" store as Belks is now.

Perhaps specific details were fudged over time or Federated excludes a lot of "second-tier" history for promotional purposes, but what I've seen directly from a PBS produced special on history of american department stores back in 99/2000 and heavily focused on bloomingdale's as it was the first true department store. Simiarly, many silent movies from the 30s and 40s clearly show Bloomingdales as a respected retailer (and not the subpar store you are depicting) and the average person didnt shop there during the depression, which helped make the "brown bag" famous (it was publicly known that the Astor family shopped there). Yes, I know they udnerwent a makeover in 50s, but not liek what Belk is doing today. The owners of Bloomingdale's saw a shift in demographics in where they were located. It wasn't "elite" yet, yes, but it wasnt considered bad either. WIth the movement of people, they also changed their look and attracted the elite and by the 60s it was considered the place to shop. Unless these historical depictions of the Great Depression and the history programs Ive seen are false, Ill continue to believe it. I agree with you that Bloomingdale's back then was not the ""luxury appearance" it has today, sorry I gave that impresssion, I was merely refuting that Bloomingdale's was not poorly looked at from the high class standpoint, merely it was a middle class to comfortable living and regular people couldn't shop there (mainly during the depression).

Of course I wasn't alive back then and I come from an immigrant family so I can't base anything on parental experience. But I eat the information that is fed to me and thats all I am regurgitating.

^^Barney's information comes from the history of Barneys in the AZ Republic when Barneys did extensive scouting in Scottsdale for its namesake brand and Barneys Co-Op (both of which verbally, but not officially, to enter the market by 2008). It was a section basically devoted to promoting Barneys. They might have left out its information of starting as second-tier for promotional reasons but from what I understand it established itself pretty quickly and describe the store as "Barney sold his wife's ring or watever to start a store with 40 imported European suits. From there it quickly rose to a famed luxury retailer for men's fashion" and blah blah. Perhaps the time frame is dragged out, but what I understood from it was it was pretty quick.

I don't know what they have to prove beyond the ability to run a profiatble, attractive store, honestly. It makes no sense to close down good stores in small towns just for image. It makes no sense to pass up oppurtunities at great real estate just because people aren't familiar with the best of the brand.

Regardless of all the comparisons (Bloomingdales and Barneys), my true point is what Belk's will be going, with the rebranding, etc, is a complete re-imaging program that really is unmatched in most retail cases. With the Bloomingdales example, their change isnt as big as Belks.

I never said Belks should close its locations, moreso I think closing those locaitons would be bad. I agree with mallguy and I simply think they should have kept two separate nameplates. Simply stated, you can't argue that it wont be difficult for Belk to do the re-imaging as most corporations have failed at changing its target demographic when already established in the market (Saks most recently, and Burlington). The only thing Im arguing is you make it sound as if Belk will face no difficulties when entering the Phipps market. All I am saying is it will not be a runaway success, even after extensive changes. It will have to go through a lot of extensive marketing and re-branding within the Atlanta area to compete with the other stores at Phipps/Lennox. I never said this won't be possible, it will simply be, hard. Really depends on the openness of those that shop at Phipps, and from what it looks like, they don't seem too thrilled. Regardless of how good Belk is at management and marketing, if the people are close-minded to trying it out, it will still fail. It would have been easier and more guaranteed success to improve current Parisian stores than spend all this money to have different tier-level Belk stores.

[StevenRocks]

The Parisian name was fading, as evidenced by the ho-hum sales figres quoted by mallguy and the relatively low sales price to Belk, which was apparently the only suitor of interest.

Keeping the Parisian name on a handful of stores simply to please a small market of sophisticates makes no financial sense. In order to make Parisian work, it would have to grow, not shrink. The results of same would like not produce enough difference in revenue to cover the costs of keeping up a seperate infrastructure.

Bloomingdale's stands beside Macy's beacuse it's a proven and popular profit-maker. Bergdorf Goodman stands beside Neiman Marcus for the same reason. Parisian does not exhibit these qualities and Belk is doing the right thing by retiring the nameplate.

I have some reading for you guys. Marvin Traub, former chairman of Bloomingdale's wrote a book called Like No Other Store: The Bloomingdale's Legend and the Revolution in American Marketing. Obviously, you don't believe me, but maybe the guy who helped make Bloomingdale's what it is today can shed some light on both how a store can reinvent itself and also clear up the misconceptions about that store's history.

[mallguy]

The Parisian name was fading, as evidenced by the ho-hum sales figres quoted by mallguy and the relatively low sales price to Belk, which was apparently the only suitor of interest.

Keeping the Parisian name on a handful of stores simply to please a small market of sophisticates makes no financial sense. In order to make Parisian work, it would have to grow, not shrink. The results of same would like not produce enough difference in revenue to cover the costs of keeping up a seperate infrastructure.

As always, you make good points. But the Parisian sales per square foot figures were higher than Belk's, and Parisian's same-store sales were increasing pretty well (in many periods, better than Saks Fifth Avenue's) before it was sold. Given the store's pretty good financial performance, strong name recognition in non-core Belk areas and relatively upscale image, I think it was worth keeping, just as tons of companies, from Gap and other retailers to car companies to airlines, have different brands for products targeting different market segments.

But since Belk has killed the chain, we'll see- I will remain extremely disappointed, but fortunately it's Belk's money at stake, not mine. Belk is doing what very few businesses have successfully done: trying to be all things to all people instead of projecting a clear brand image. So be it.

[memphian]

I do agree that Belk should keep the namesake banner on its stores that cater to the smaller-town shoppers. I understand having a mega-great store in CLT (everyone needs a flagship). Parisian would have complimented Belk nicely as the upscale sibbling. I am quite sure that Belk will do very well in many of Parisian's markets and I also believe that in some of the markets that lost a single store in the May/Federated merger would have been a perfect fit for Parisian - and there's your growth channel. Parisian would have also been a good fit in some of Belk's current markets too.

The real criminal is SAKS and its tunnel-vision. I don't blame them for wanting to focus their strategies but at the same time you don't see them growing their business down South at all. They've packed up and moved back to NY. A private company (not Belk) should have bought the chain and run with it. There's plenty of talent out there - especially from the raped Marshall Field's organization.

There was a better alternative and Belk could still take that route.

[StevenRocks]

As always, you make good points. But the Parisian sales per square foot figures were higher than Belk's, and Parisian's same-store sales were increasing pretty well (in many periods, better than Saks Fifth Avenue's) before it was sold. Given the store's pretty good financial performance, strong name recognition in non-core Belk areas and relatively upscale image, I think it was worth keeping, just as tons of companies, from Gap and other retailers to car companies to airlines, have different brands for products targeting different market segments.

Niche brand marketing is most effective when the accessory brands offer a real difference from the main brand. As I''ve said before, Belk and Parisian are just not different enough from each other to justify the existence of both. Renaming the top Belk stores as Parisian and the bottom Parisian stores as Belk helps nothing, and actually runs a batter chance of ruining both brands.

Belk's sales figures are lower than Parisian's because they operate a larger network of stores and many of those stores are in smaller markets with lower income levels. Considering that it costs about the same to sell a $10 shirt and a $200 shirt, it makes it harder to make a profit unless you're doing great volume, which some of Belk's smaller stores simply don't do. How they balance this is with generally lower rents and operating costs that come with less prestigious locations.

Further, Belk operate home departments in virtually all of their stores, and home stores tend to produce fewer inventory turns, which mean lower sales per square foot. Home stores are less profitable than clothing and cosmetics, but they are provided as a conveience to their customers who expect Belk to carry the items.

Parisian's numbers were only appreciably better, despite the proximity of its stores to one another (leading to lower transportation costs), general lack of slow-turning home items, relatively choice real estate and the higher-fashion merchandise they carried.

Compare this to former sister division Saks Fifth Avenue, which had less sales growth than Parisian but higher sales overall, and it's not exactly painting a great picture. Saks' revenues come primarily from its New York flagship, but its branch stores tend to outperform the best of Parisian's locations. Further, after taking a hit from missteps in fashion, Saks Fifth Avenue has a plan to return to more conservative fashion, which should ensure more solid numbers going forward.

[memphian]

Does Belk have the same buyer selecting goods for the C stores as they do for the A stores? I would expect some overlap but I bet that there is already a bit of a divison in place at Belk which could in-turn support a second banner.

Image is the biggest hurdle for Belk in all of its new markets (current Parisians). Fashion will be next but shouldreally be first. And, if Belk adds a home store to some of these Parisians then they'll lose floor space from fashion for mediocre home goods. Parisian was a fashion driven store at all levels and yes even the Tupelo store, which I have visited many times, sold higher quality goods than the McRae's at the same mall. So I really do not see how these two stores are that similar. I believe that McRae's and Proffitt's was the best fit. Parisian is like Lord and Taylor - there's just not a place for it in most department store organizations so they get assimilated into something else and voilla! the consumer loses.

On a side note... when Parisian had a home store at Cool Springs it was very nice only recently when Toni Browning took over the division did it begin the cheapen.

Does Belk carry Ted Baker clothing?

[mallguy]

Does Belk carry Ted Baker clothing?

Yes, the SouthPark store does. I haven't seen Ted Baker in other stores.

Regardless of why Belk's sales figures are lower than Parisian's, facts are facts and they are lower (and distribution costs shouldn't directly affect sales figures). Parisian is still a viable chain.

[Abe2M12]

I think Parisian is the biggest department store at Phipps and the Nordstrom there is about 130,000 square feet, so something larger than that. Barneys cant go into just any space, we learned that in Phoenix. San Francisco happened to have a space that fit Barneys size requirements (most of them are around 80,000-100,000(max) with NYC as an exception.

Also, I think Atlanta is a little more mature than Dallas. Dallas didnt have a lot of retail until recently (with the new opening of NorthPark Center). And, being new, and in a prime city that was relatively lacking retail, NorthPark Center attracted a slew of high end fashion. THey built a store specifically for Barneys to fit into.

But Barneys has stated it will be expanding quite aggressively (its opening 4 new departments stores and 5 new Co-Ops in one year?) Its already verbally confirmed to open in Phoenix by 2008 at a new development. I think its only a matter of time before it opens in Atlanta. You never know, Belk might just sell the space to Barneys....

Actually Northpark Center has been in Dallas for a long long time. northpark I think around the time lenox was built (before or after) In my opinion dallas is more mature (retail wise) than atlanta, with at least three nieman marcus locations (downtown, northpark, willow bend, etc.), two nordstroms, one saks (the galleria not to be mistaken with the even more upscale houston galleria) and an actual flagship barneys plus the exclusive Highland Park Village which feaatures many stores not presently in Atlanta i.e prada, chanel, escada etc. Dallas i heard is the U.S. #1 city with the highest per capita of millionaires and of shopping centers. It is only until recently that northpark expanded adding a second level and a new nordstrom plus its wing. This now makes northpark the largest shopping center in dallas outsizing the galleria which is north of npc close to Plano. Its quite nice (went in April, barney's was still not open). I love lenox/phipps but this one was special. Barneys moved into northpark after lord and taylor left, however with barneys moving into smaller locations the old lord and taylor was split in half with the remaining side becoming a furniture store ( i think). Supposedly the Dallas Barneys is the third largest outside NY #1 and Beverly Hills #2, i thought Chicago was bigger. Hopefully and if barneys came to atl, the parisians location at phipps would be too big...probably would be reduced like lord and taylor at northpark.

Changing the subject, Belk at phipps would just be like Macys at Lenox. An affordable luxury department store that serves to residents of the area plus the many not as wealthy but paying visitors/tourists (20-40% of lenox/phipps customers) I'm over it, its not a big deal as if the salvation army was taking over parisians at phipps-

[StevenRocks]

Does Belk have the same buyer selecting goods for the C stores as they do for the A stores?

Yep.

Belk's buyers are reponsible for individual departments and merchandise divisions, and not nesseccarily for individual stores. The difference is that certain departments are only in higher-volume stores. Designer sportswear buyers, for example, buy for the whole Belk organiztion, but their selections will only be sold at locations with that department.

Regardless of why Belk's sales figures are lower than Parisian's, facts are facts and they are lower (and distribution costs shouldn't directly affect sales figures). Parisian is still a viable chain.

The figures you posted showed a sales difference of about $15 per square foot in Parisian's favor. Allowing for a margin of error of 10%, the stores are dead even.

And disregarding facts to bolster sentimentality doesn't make a store viable. Parisian stores were underperforming. Setting up a seperate organization for a sales gain of 10% makes no sense.

[mallguy]

Yep.

Belk's buyers are reponsible for individual departments and merchandise divisions, and not nesseccarily for individual stores. The difference is that certain departments are only in higher-volume stores. Designer sportswear buyers, for example, buy for the whole Belk organiztion, but their selections will only be sold at locations with that department.

The figures you posted showed a sales difference of about $15 per square foot in Parisian's favor. Allowing for a margin of error of 10%, the stores are dead even.

And disregarding facts to bolster sentimentality doesn't make a store viable. Parisian stores were underperforming. Setting up a seperate organization for a sales gain of 10% makes no sense.

I'm not "disregarding facts to bolster sentimentality"- the 10% margin of error can go the other way, resulting in Parisian sales per square foot to be $30 (over 20%) higher than Belk's, and diluting a brand's clear image has been a problem faced by many companies that have offered both high-end and low-end products at the same time. And as a recent article on the Federated/May merger points out:

"'The big challenge is to hold on to the local loyalty factor while changing the name and changing the format to achieve success nationwide,' said Janet Hoffman, managing partner of the North American retail division of Accenture, a consulting firm.

"'It's the lack of pizazz that has hurt department stores,' Hoffman noted. Yet, she added, the comfort of having a local store has enabled 'department stores to hang on to a thread.'"

These quotes are about Federated's integration of various nameplates but also are valid for Belk.

[memphian]

Another thing that Belk needs to contemplate is that after the transition of the Parisian stores to Belk if I walk into one of those stores I want to see a Belk store, not a Parisian store stripped of its identity then plastered with make-shift signage, etc.

Back when Dillard's purchased Mercantile they had to sell 5 Nashville Castner Knott Co. stores to someone (SEC mandate). Proffitt's bought them but did nothing to change the ambiance/vibe of the stores to fit their model. As a matter of fact the stores went into some neglect. Needless to say that transition and lack of care all but sealed Proffitt's coffin in Nashville. Add that to a bad choice of merchandise that got increasingly poorer in quality and style and Proffitt's sold out to Hecht's within 4 years.

This can be an issue with Belk if they don't come into the Parisian stores and pay attention to every detail they may fall victim to this same issue. Just a thought (hopefully someone from the organization reads this page).