Belk starts making subtle changes to Aloca, Tenn.-based retailer Proffitt's

Jason M. Reynolds
Chattanooga Times/Free Press, Tenn.

As Belk starts taking over the Proffitt's chain on Tuesday, customers will see gradual changes in the stores although the name will not change until at least March, an official said.

"I think it's going to be a smooth transition," said Steve Pernotto, executive vice president of human resources for Charlotte, N.C.-based Belk Inc.

Belk and Saks Inc., the parent company of Proffitt's, announced in April that Belk would buy the Alcoa, Tenn.-based retailer for $622 million in cash and the assumption of about $1 million in capitalized lease obligations, according to The Associated Press. The sale agreement recently was cleared by federal regulators.

The deal includes 22 Proffitt's and 25 McRae's department stores around the Southeast, including those at six regional malls in the Chattanooga area. Mr. Pernotto said Belk officials have not yet decided the fate of Proffitt's stores in two North Georgia malls which have both Belk and Proffitt's.

"We need time to analyze the strengths of all our markets and all our stores," he said. "I don't think there's any rush."

Proffitt's officials in Alcoa declined to be interviewed on the transition process.

Shoppers at the Hamilton Place Proffitt's stores had mixed reactions to the acquisition.

"I like Belk. They seem to be getting better quality merchandise," said Mrs. B.A. Kincaid, of Florida. "However, I was disappointed to hear about it. I would like to keep them separate."

Nancy Humberger said she enjoyed shopping at Belk because of its clothing selection and missed it after it left Hamilton Place seven years ago.

"I always preferred Proffitt's over Belk," said Glenda Clemons, a Proffitt's customer and former worker there.

Her friend, Joy Bishop, also a former Proffitt's employee, said she agreed. She said they both enjoy shopping there and have Proffitt's charge accounts.

Mr. Pernotto said the new Belk stores would have a mixture of both retailers' brands, plus Belk's services which include free gift wrapping and free alterations for customers with a store credit card. Belk is the nation's largest privately owned department store chain with 228 locations in 14 Southeastern states.

"I think you'll see great assortments," he said. "There will be some new services not offered previously to customers in these markets."

Belk will continue to operate separate general department stores and men's, children's and home stores, which Proffitt's currently has in its Cleveland, Tenn., and Chattanooga locations, Mr. Pernotto said. All store employees will keep their jobs, he said.

The Proffitt's Alcoa headquarters will remain open into the fall, when some of the staff will relocate to either North Carolina or other parts of the country, Mr. Pernotto said.

The Proffitt's acquisition is the latest chapter in a retail saga stretching back 130 years. D.B. Loveman bought the New Orleans dry goods store in downtown Chattanooga in 1875. Lovemans Inc. was sold to Proffitt's in 1988. In 1998, Saks Fifth Avenue was acquired by Proffitt's and the corporate name was changed to Saks Inc.

The Associated Press contributed to this story.

CHATTANOOGA-AREA PROFFITT'S LOCATIONS:

--Hamilton Place mall

--Northgate Mall

--Bradley Square Mall, Cleveland, Tenn.

--Proffitt's Plaza, Athens, Tenn.

--Walnut Square Mall, Dalton, Ga.

--Mount Berry Square Mall, Rome, Ga.

CHATTANOOGA-AREA BELK LOCATIONS:

--Walnut Square Mall

--Mount Berry Square Mall