Charlotte-based Belk may buy Saks unit

[DigitalSky]

Belk Inc. is a likely candidate to buy Saks Inc. department stores, The New York Times reports. - not Saks fifth Ave, but their department store group that includes The Boston Store, Younkers, Parisian, Proffitt's and McRae's

http://charlotte.bizjournals.com/charlotte...tml?jst=b_ln_hl

ok so the question is, if Belk - which currently has more than 225 stores in the Southeast, buys the group of department stores.. they will all become Belk, right? That would put belk up to 225+241 = 466 stores! Except maybe for the malls that have both of the same store, but that's not a lot of malls.

Update Observer Article

http://www.charlotte.com/mld/charlotte/business/11282750.htm

[orulz]

That's one more strike against Biltmore Square in Asheville (it has a Proffitts and a Belk.) I haven't been there lately but several years ago it seemed to be struggling.

[QC704]

Wow, that would be a huge expansion. It would put them as far north as michigan for sure.

[DigitalSky]

ok now i'm hearing it actually might not be that many stores. I heard that Belk is only interested in Parisian, McRae's, Proffitt's, and possibly Younkers. Probably not stores like Herberger's,Carson Pirie Scott and Bergner's since they are more in the north and northwest.

[StevenRocks]

ok now i'm hearing it actually might not be that many stores.  I heard that Belk is only interested in Parisian, McRae's, Proffitt's, and possibly Younkers.  Probably not stores like Herberger's,Carson Pirie Scott and Bergner's since they are more in the north and northwest.

<{POST_SNAPBACK}>

Parisian, McRae's and Proffitt's would make a great fit for Belk. Younkers, Herberger's, Carson Pirie Scott and Bergner's are a bit of a stretch geographically, but it could possibly work with time.

If I were running Belk, I'd operate Parisian as a seperate, upscale division and convert the rest of the stores to Belk.

[DigitalSky]

If I were running Belk, I'd operate Parisian as a seperate, upscale division and convert the rest of the stores to Belk.

<{POST_SNAPBACK}>

me too

[AmericanUrbanDesigner]

Would this mean a movement of jobs from B'ham to Charlotte?

[StevenRocks]

Would this mean a movement of jobs from B'ham to Charlotte?

<{POST_SNAPBACK}>

Some jobs would have to move to Charlotte from Birmingham in order to make the aquisition worthwhile, and some new jobs would be created in Charlotte to handle the additonal sales volume.

[monsoon]

This will be the second Birmingham loss to Charlotte in the past year. (Southtrust is the other)

[csedwards72]

No! I'd hate to lose Parisian! That is a MUCH nicer chain than Belk.

If I were Belk (or Saks), I'd open a Parisian at SouthPark in Charlotte; that would be an ideal mall for Parisian.

[rockhilljames]

Typically when Belk buys stores they convert them to Belk stores and support them from the Charlotte BSS. Usually they buy locations from chains that are in trouble or that are looking to leave a particular market.

In the past they have acquired a fair number of JB White, Dillards and Profitts locations. Unless this is bigger than what I've heard, Belk will simply buy stores in locations that they desire and covert the stores over.

I doubt that they'll maintain any separate brands, they just spent over 5 years removing the various Belk-"other name" sub-brands from their inventory. As for jobs moving, I'd bet that there won't be any relocations, that they'll just add any additionally required support staff for the new stores at the Charlotte location.

I think that a bigger deal has been made out of this than is warrented. In the end I think we'll see a few stores change hands, but not a wholesale brand change.

[AmericanUrbanDesigner]

Does anyone have any idea of how large Belk is, or will be (and where it rank in the Fortune 500 - if at all - if it were public?).

[eastsider]

Does anyone have any idea of how large Belk is, or will be (and where it rank in the Fortune 500 - if at all - if it were public?).

<{POST_SNAPBACK}>

Belk was ranked #655 overall in the 2004 Fortune 1000

It ranked #15 among general merchandisers

Belk had 2.2 billion in revenue in 2003

[dubone]

for some reason, i think it is kind of cool that it is still a family business and run by a family descendant of the founder. Somehow it makes it seem like the business hasn't 'sold out'.

[DigitalSky]

for some reason, i think it is kind of cool that it is still a family business and run by a family descendant of the founder.  Somehow it makes it seem like the business hasn't 'sold out'.

<{POST_SNAPBACK}>

yeah i really respect that. And, it's based in Charlotte, so w00t to the hometown store!

[DigitalSky]

for some reason, i think it is kind of cool that it is still a family business and run by a family descendant of the founder.  Somehow it makes it seem like the business hasn't 'sold out'.

<{POST_SNAPBACK}>

yeah i really respect that. And, it's based in Charlotte, so w00t to the hometown store!

[StevenRocks]

A purchase of at least Proffitt's and McRae's would allow Belk to expand to contiguous markets and gain some major market share in the Southeast. They would 'own' the East Tennessee department store market, for example.

[DigitalSky]

A purchase of at least Proffitt's and McRae's would allow Belk to expand to contiguous markets and gain some major market share in the Southeast.  They would 'own' the East Tennessee department store market, for example.

<{POST_SNAPBACK}>

yeah my friends in Chattanooga want Belk back, they left when Dillard's bough some of their stores there

[DigitalSky]

in the paper today:

Belk profits broke company record last fiscal year

RETAIL

Charlotte department store Belk Inc. said Friday profits for its fiscal year hit a record high as sales rose 8 percent from a year earlier, thanks to strong performances from its existing and new stores. For the year ending Jan. 29, its net income jumped 11.3 percent to $124.1 million. Belk's sales hit $2.45 billion, boosted by a 4.2 percent increase in comparable store sales and an additional $92.6 million in sales from its 14 new stores.The company said it expects to open 12 new stores from Charlotte's Northlake Mall, to Waxahachie, Texas, and Owasso, Okla., during this fiscal year. -- GILLIAN WEE

[StevenRocks]

Belk's definately on an upswing. Around 2000, things were very different. The comps were negative and so was profitability. Belk changed a lot about the way they do business, and it's really helped them stay competitive.

The effforts they've made to tailor their expansion to smaller, non-mall stores in growing suburbs has been very smart, because it's allowed them to grow even as mall construction has tanked.

[Neo]

I was in DT Monroe this evening and I took a shot of the original Belk building. An interesting personal note is that my grandpa (passed away some years ago) was asked to become a partner when Belk was starting his company. My grandpa was extremely stingy with his money and denied any partnership in the company. It sometimes comes up in family conversations, where would we be if he'd said yes when offered the partnership (if we'd even be here at all).

[StevenRocks]

According to Leigh Dyer at the Charlotte Obsever, a deal for Belk to purchase Proffitt's and McRae's could be imminent:

Belk keeps silent on rumored acquisition

http://www.charlotte.com/mld/charlotte/business/11409637.htm

[monsoon]

I was in DT Monroe this evening and I took a shot of the original Belk building.  An interesting personal note is that my grandpa (passed away some years ago) was asked to become a partner when Belk was starting his company.  My grandpa was extremely stingy with his money and denied any partnership in the company.  It sometimes comes up in family conversations, where would we be if he'd said yes when offered the partnership (if we'd even be here at all).

<{POST_SNAPBACK}>

Wonder how many times he questioned that decision.