Belk gets new logo

RALEIGH, N.C. (AP) — Charlotte-based Belk is looking to update its 122-year-old image.

The News & Observer of Raleigh reported Sunday that the iconic Southern department store chain will spend about $70 million to change its logo to a more modern look and rebrand itself. Belk last changed its script logo 43 years ago.

The new logo will be all lowercase letters. The first wave of about 60 stores to get the new signs will be in larger cities of Atlanta, Birmingham, Charlotte and Raleigh. The rest of the company's 300 stores get the signs over the next year.

Retail leader, mayor, John Belk dies at 87

The Charlotte Observer

Former Charlotte Mayor John Belk, who ran his family's retail chain for over 50 years, died Friday morning. He was 87.

Belk served four terms as Charlotte's mayor from 1969-1977. That was longer than anybody before current Mayor Pat McCrory.

"John was a highly respected businessman and beloved community leader who played an integral role in the growth, development and success of his company and the Charlotte community," the company said in a statement. "He will be truly missed."

A funeral service will be held Monday at Myers Park Presbyterian Church in Charlotte.

Hudson Belk gives men their space

Updated 6/5/07 with additional information (see below)

Stand-alone Men's Store opens at Crabtree Valley Mall with more clothes, shoes

Sue Stock, Staff Writer
The News & Observer

RALEIGH - Employees at the new Hudson Belk Men's Store in Raleigh's Crabtree Valley Mall are still arranging displays and unpacking merchandise, but the store was ready enough to open its doors Sunday afternoon.

Belk has moved into the top floor of what used to be Lord & Taylor, bringing mahogany shelves, racks of polo shirts, an expanded shoe department and legions of khaki pants.

The arrival of the 68,000-square-foot Belk Men's Store signals a new approach in this market by the longtime shopping staple.

This is Belk's first stand-alone Men's Store in the area, though it has 15 others in cities such as Danville, Va. It's also the biggest Men's Store the Charlotte retailer has ever built.

Company executives acknowledge that it's a strategy that won't work everywhere.

Shopping centers have to generate enough sales and traffic to make a stand-alone store worthwhile, said Steve Pernotto, the executive vice president.

"It has to be a highly productive center, and we look at sales per square foot and profitability," he said. "We look at the current and the future. You need to look out at where you're going to be in the next couple of years."

Other Belk Men's Stores have been successful, Pernotto said.

He declined to offer specific figures but said a store's sales would typically rise by a few hundred dollars per additional square foot.

The Belk Men's Store at Crabtree is double the size of the old men's department, with 34,000 additional square feet.

Still, despite all the optimism, customers were a bit confused.

Those who visited the old men's department were greeted by empty shelves, a few sales racks and a sign directing them to the new Men's Store.

Mitch Danforth, a senior civil engineering major at N.C. State University, was surprised by the speed of the transition.

"I came to Belk on Saturday and looked at sports jackets, and I came back today and found they had moved," he said. "But they kept the sale prices, so I'm fine."

Belk executives say the confusion will only be temporary. "Change always takes a little time for people to get used to it," store manager Lee O'Rourke said "You'll start to see lots of advertising as we lead into our official grand opening."

Some shoppers Monday were waiting to see whether the new store would retain their favorite qualities from the old store.

Cary resident Al Blalock said he's a fast shopper who goes into the store, gets what he wants and leaves.

"I liked coming to Belk because I didn't feel like someone had to escort me around," Blalock said. "As long as that stays the same, I'm OK."

Alienating shoppers such as Blalock is the last thing Belk wants to do. Overall at Belk stores, 70 percent of the shoppers in the men's department are women.

The Men's Stores offer a chance to appeal directly to men, with no makeup counters or perfume-spraying attendants to dodge and a decor of dark wood and dark colors, Pernotto said.

"The female's going to shop there, regardless, for their husband," Pernotto said. "We think we'll increase the percent of males that shop in our location instead of shopping at another location."

Cary resident Wayne Harris, said he will spend a lot of time in the new Men's Store. He already shops at men's specialty stores such as Liles Clothing Studio in North Hills.

"I think a big percentage of guys just don't like to shop," he said. "But maybe that's because there's not enough selection. ... This will definitely be a shot in the arm for men's shopping around here. They've been needing this."

Other shoppers wondered whether the store was too sophisticated.

"The main focus is on the business attire," said Raleigh resident Curtis Brown, a recent N.C. State University graduate. "Their fashion sense for the younger generation isn't really that much."

Renovation in the old men's department in the original Belk store starts Monday, O'Rourke said. Cosmetics, accessories and intimate apparel will expand into the space. The work will be completed in November.

The new Belk Men's Store will have its grand opening June 1.
__________

Belk's for men jazzed up
Samantha Thompson Smith, Staff Writer
The News & Observer

RALEIGH - Burberry at Belk? That's just one of the big surprises at the new stand-alone Belk men's store that recently opened in the old Lord & Taylor space at Crabtree Valley Mall.

Here's another shocker: 7 for All Mankind jeans. A few of which sell for $198.

Grandad's Belk? Clearly not.

Finally Belk has done to men's fashion what it started doing for women a few years ago. The new store is a pleasant surprise; a mix of old faithfuls that Belk shoppers grew up with -- Saddlebred, Levi's and Ralph Lauren -- coupled with brands you wouldn't expect at Belk. Among them: Gitman Brothers button-downs, Ferragamo ties, Donald Pliner loafers and Paper Denim & Cloth jeans.

They don't come with traditional Belk pricing, either. The Ferragamo ties sell for $135. Burberry button downs cost $115.

There's still plenty of what we're used to. There are plenty of Meeting Street button-downs, and the store has hundreds of Polo shirts -- so many, the Polo shop is among the largest in the Southeast.

But if you want to take it up a notch, here's the place to look. The store also sells higher-end suits by Burberry and Hugo Boss. The selection of Joseph Abboud has expanded. And there's Tommy Bahama wear both for weekends and for work.

The new space is one of the biggest shops for men's clothing and accessories in the area, taking up 68,000 square feet, more than double the retail space of its old location in the lower level of the Crabtree Belk store.

The changes have been a long time coming. Nordstrom and Saks both came into the market a few years ago stocking trendy, big-name brands appealing to more fashion-conscious male shoppers.

Stay tuned. Merchandisers are waiting to see what customers like. Then they plan to edit the selection once they get a better feel for customer demand, says Travis Groome, a Belk merchandise coordinator.

Belk, Eastland Mall, to close by mid-February

According to unnamed sources, Charlotte, N.C.-based Belk, Inc. intends to close its underperforming Eastland Mall store, also located in Charlotte, by mid-February of next year.

The two-level, 160,000 square foot store opened in 1975 as one of Eastland Mall's original anchors.

Though Belk has denied rumors in the past that they planned to close their Eastland store, even after plans for a larger store in a more affluent neighborhood were announced in 2005, they have made no secret of their displeasure with the demographic changes at the struggling mall and have slowly reduced the breadth and quality of the merchandise lines at the store over the past several years, recently closing the lower level men's department and consolidating its merchandise on the upper level.

Further information on the closing will be proviuded as it becomes available.

Previously on LiveMalls
Belk, Eastland Mall

Federated to Exchange Stores with Belk

Wilmington Morning Star and Business Wire

WILMINGTON, N.C. -- Macy's at Mayfaire will become a Belk store

The Macy's in Mayfaire Town Center, a former Hecht's location, will become a Belk next year under a swap deal between the two stores' parent companies, Belk announced Thursday.

Under the agreement, the Mayfaire store will open as a Belk in spring 2007, according to the announcement. In exchange, Belk will turn over a Parisian store in Collierville, Tenn., to Federated Department Stores Inc., the parent of Macy's.

All store associates in good standing at the Mayfaire store will be employed at the Belk, according to the statement.

Belk already operates stores at Independence Mall and Landfall Center.

Charlotte, N.C.-based Belk Inc. is the country's largest privately owned department store company, with 279 Belk stores and 36 Parisian stores in 18 states, mainly in the Southeast.

The Bon-Ton to Buy Four Parisian Stores

Chain Store Age

York, Pa. - The Bon-Ton Stores Inc. said Wednesday it agreed to pay $22 million in cash for four Parisian department stores and the rights to build a fifth one from privately held department store retailer Belk Inc.

The four stores are located in Michigan, Ohio and Indiana, and generated sales of more than $90 million in fiscal 2005. The fifth store will be located in Michigan and is scheduled to open in October 2007. The deal is expected to close on Oct. 30 pending customary closing conditions.

Once the transaction is completed, The Bon-Ton will operate 282 stores in 23 states, with estimated annual sales of $3.4 billion.

Belk completes purchase of Parisian

CHARLOTTE -- Belk Inc. is officially bigger.

The Charlotte-based department store chain completed its purchase of 38 Parisian stores Monday, further solidifying the chain's place as the nation's largest privately held department store chain.

Belk purchased the stores from Saks, which has been selling its middle-market department stores as it shifts its focus back to its high-end Saks stores.

The purchase includes Parisian stores in Indiana, Michigan and Ohio, creating a new Belk presence in those states. The chain now operates 315 stores in 19 states.

Analysts and Belk officials have said the Parisian purchase could increase the chances the Belk stores will carry more upscale clothing for women. The Parisian stores are likely to see stronger men's sportswear and home merchandise departments, they said.

Belk has said it plans to change the Parisian name to Belk in the third quarter of 2007.

Neiman Marcus reaches for top-shelf buyers

Upscale chain that caters to richest 1% set to debut at SouthPark on Friday

NICHOLE MONROE BELL
nbell@charlotteobserver.com

CHARLOTTE - When Neiman Marcus opens at SouthPark mall Friday, self-described "fashion addict" Vahni Hughes plans to be there, ready to splurge.

But her pocketbook better be ready.

With its $3,000 handbags, $5,000 evening gowns and $10,000 diamond-studded false eyelashes, Neiman Marcus' over-the-top, unapologetic glam caters to the richest of the rich.

"At Neiman, it's about the total experience," Hughes said.

Neiman Marcus will bring an unrivaled level of luxury shopping to the Charlotte region, retail experts said. The department store's strategy is simple: indulge the rich by selling clothing, jewelry and trinkets only they can afford.

Their target clientele: households with an annual income in the top 1 percent. In the Charlotte area, that's about $245,000 a year.

"Neiman has great product, and they don't water their price down for the market or anyone," said Glen Taylor, co-owner of Taylor Richards & Conger in Phillips Place. "If you're a shopper, you step up, or you step back."

The Charlotte store will be the only Neiman Marcus between Atlanta and Washington, D.C. And while the retailer has traditionally focused on larger cities, the company's arrival in Charlotte is part of a broader strategy to expand to new markets.

Neiman spokeswoman Gabrielle de Papp said the company had its eye on Charlotte for "some time," and plans to draw from a 50-mile radius. The store has been designed to accommodate a third floor, which could be added after a year.

"We study markets carefully and have been watching the amazing growth the city has experienced over the past 20 years," de Papp wrote in an e-mail. "The demographics show growth in the luxury sector. ... Charlotte has seen a phenomenal increase in the recent past within our target market."

More than 9,100 Mecklenburg County households have a net worth of $1 million or more, but researchers estimate that figure could grow to 15,000 in the next few years.

"It seems to me there's a fairly natural base for Neiman to come in and serve a customer that may not be served at this point," said Patricia Edwards, a retail analyst for Wentworth, Hauser and Violich in Seattle. "Even people who don't have the money will go in and look at what's hot. Anytime you bring up the fashion sensibility of a city, there'll be a trickle-down effect."

When Nordstrom opened at SouthPark in 2004, shoppers were excited at the prospect of an upscale department store. But observers say Nordstrom targets a lower-income demographic than Neiman -- and pales in comparison when it comes to the amount of luxury items.

Even Neiman's decor oozes opulence. The walls are covered with original artwork commissioned from 19 regional artists. Handbags, shoes and gloves are displayed in museum-style cases. Home decor items are set against a backdrop of Venetian plaster, mosaic marble accents and beaded textured glass. And for optimum application of cosmetics, the entire store is bathed in a glow that replicates natural light.

Hughes, a Wachovia Web site content manager, said she plans to take Friday off to attend the opening. While her income falls short of the top 1 percent, Hughes said she sees Neiman as a place where people can splurge on little things such as lipstick. She said she tries to visit Neiman when she's visiting other cities.

"I do hit these stores if for nothing else than for inspiration," she said.

Neiman is thriving at a time when some retailers are struggling to hold on to customers. One reason: high-end shoppers are not as sensitive to factors such as skyrocketing gas prices.

"What Neiman Marcus is doing is what we recommend for all retailers who can afford it -- follow the money," said Gerald Celente, director of Trends Institute, a consulting agency in Rhinebeck, N.Y. "The people at the top are not going to stop spending money, and they are not going to lose it. And that market doesn't move much with the ebbs and flows of the economic tide."

Other Charlotte-area retailers said they believe their stores will benefit from Neiman Marcus' opening. Belk spokesman Steve Pernotto said he expects increased traffic at SouthPark, which will cause an overall boost in sales for the mall's tenants.

Taylor of Taylor Richards & Conger said he plans to compete by offering clothing from trendier, lesser-known designers. The men's store also will rely more on custom-tailored pieces.

He said there's another benefit to Neiman Marcus. Customers will be less likely to complain about his prices.

Although his customers can afford $2,000 Armani suits, they still grouse about the price, he said.

"In a community like this, where we've always been at the top of the elevator as far as pricing, we feel like it will legitimize some of the price points we have," Taylor said. "They'll raise the ceiling on pricing here."

Database editor Ted Mellnik and Staff Writer Stella Hopkins contributed.

Mall owner sues to stop Belk store

montgomeryadvertiser.com

BIRMINGHAM, Ala. -- Sorry, Belk fans. You just thought you were shopping at a nice department store.

A Belk store isn't classy enough for the owners of an upscale, open-air mall that fashions itself as a destination shopping center near some of Alabama's priciest neighborhoods in surburban Birmingham. The owners have filed suit trying to block plans to replace a Parisian store with a Belk at The Summit shopping center.

The suit by Bayer Retail Co., filed in Jefferson County Circuit Court, says Belk operates moderate-price department stores that would not fit the "first-class retail shopping center" image of The Summit.

The suit came after Birmingham-based Saks Inc. announced it was selling the Parisian chain to Belk Inc. in a $285 million deal, and Belk said all Parisian stores, including the three in Birmingham, would be renamed and converted to carry Belk merchandise.

Converting the Parisian to a Belk would "impact Bayer's ability to attract and keep first-class retail tenants at The Summit" and would tarnish the center's image as a shopping destination, says the suit, filed Aug. 24.

The defendants, Parisian Stores Inc.; its Alabama holding company, Carson Pirie Scott; Saks Inc., and Belk Inc., have not responded to the lawsuit.

Steve Pernotto, Belk's executive vice president of human resources, said the company plans to invest a significant sum on the Summit store and to expand it. The store will carry top brands sold at the chain's flagship store at SouthPark Mall in Charlotte, N.C., he said.

"Where it makes sense to merchandise to a particular customer, that's what we do," Pernotto told The Birmingham News in a story Friday.

Libby Lassiter, Bayer's executive vice president of development and leasing, said Bayer held talks with Belk after the chain said it was buying Parisian. Bayer representatives also visited the chain's SouthPark Mall store.

"We have options and rights and we want an upscale fashion merchandiser" in the space, she said.

Parisian has been one of the center's anchors since 1997. Other retailers at The Summit include Saks Fifth Avenue, Harold's and Anthropologie.

Askin' for a little respect

Samantha Thompson Smith, Staff Writer
The News and Observer, Raleigh, N.C.

RALEIGH, N.C. -- All we ask, Macy's, is that you don't break our hearts.

We can't take it from another department store chain, you see. We've been through enough already.

It's not that we haven't been welcoming. For almost two decades, we've opened our arms and hearts to new department store chains to the Triangle -- chains that promised us the best, but often didn't actually deliver.

You see, after Hecht's took over Thalhimers in the early 1990s, it opened its new Crabtree Valley Mall store. We were promised an "A" store -- packed with brands that weren't already in the market and were considered high-end, designer, contemporary. In the end, we got Lauren, Tommy Hilfiger, Liz Claiborne and Nautica. Nice stuff, but most of it wasn't exclusive or different. In fact, it was a lot like what we already had at Belk.

It got more painful than that. Who could forget the slow, painful death of Lord & Taylor at Crabtree? It, too, was promised to be an "A" store when it opened in 1995 packed with many of the same merchandise -- such as Tahari and Oleg Cassini -- as at Lord & Taylor stores in bigger markets.

By the time it closed in late February, it was a messy outlet type of store full of two-seasons-old clothes from other defunct Lord & Taylor stores.

We're still not sure how our relationship is going with Nordstrom and Saks Fifth Avenue. However, there are some signs the stores aren't giving us the best they have to offer.

Take the Nordstorm at Durham's The Streets at Southpoint. And then look at the 16-page Nordstrom ad in the September Vogue magazine. The ad is packed with brands that aren't in the store: Chloe shoes, Zac Posen handbags, Proenza Schouler coats. At least we can get them online at www.nordstrom.com.

Then there's that little issue about the Charlotte Nordstrom at SouthPark mall, which carries contemporary designs by Tracy Reese, Chaiken, D&G and Milly.

And the Saks Fifth Avenue at Triangle Town Center still doesn't have some of the luxury brands, such as Gucci and Prada, we've been hoping for since it opened two years ago.

Of course, there hasn't always been disappointment. When Dillard's bought Ivey's in the early 1990s, Dillard's didn't make promises. The only real worry was that Dillard's wouldn't have sales as good as Ivey's used to. Today, Dillard's continues to improve its brand mix, including the addition of Kors by Michael Kors, Kenzie, BCBG Girls and David Meister, brands that help it stand out a bit from other department stores.

And who could forget the department store chain that raised us: Charlotte-based Belk. If anything, the chain has only gotten better. The Belk at Crabtree is among the only retailers in the state selling women's apparel by contemporary designer Marc Jacobs. It's also stocked with a collection of BCBG Max Azria, Elie Tahari and Theory separates and Betsey Johnson and Vera Wang dresses -- brands that used to only be found at specialty stores.

We'll give you a chance, Macy's. All we ask is that you do the same for us.

© Copyright 2006, The News & Observer Publishing Company

Fill 'er up at Belk!

How about a gas station at Belk? This is a photo from the "Belko" service station at Belk, Parkhill Mall, Tarboro, North Carolina, circa 1975. You could even use your Belk/Leggett charge to fill your gas tank. (Pat Richardson)

Find more Belk memories in The Belk Archive

The Belk Archive

Exclusively on LiveMalls

I am pleased to present, via LiveMalls, The Belk Archive, a tribute to America's largest family-owned department store company, Belk, Inc.

The first LiveMalls post was a Belk department store, and pictures of the company's stores have helped form the backbone of LiveMalls.

The Belk Archive would not be possible without the generous contributions of Patrick Richardson, who gave LiveMalls exclusive access to his extensive collection of Belk photos and memorabilia. I thank Pat for his help to provide the internet with a unsurpassed collection of all things Belk. Please check the archive page regularly, as I will be adding more memorabilia as I receive it.

A final note: this archive is neither sponsored nor endorsed by Belk, Inc. or its subsidiaries. I do hope that they are honored and not offended, because it's all done out of love for their company.

Visit The Belk Archive

Belk-Parisian deal opens top real estate

Store vacancies may interest other chains

MICHAEL TOMBERLIN
The Birmingham News

BIRMINGHAM, Ala. -- Belk's purchase of Parisian could end up creating retail opportunities in the Birmingham metro area for department store chains that are not in the market, officials said Thursday.

The consolidation of some stores is expected to create vacancies in key locations such as Riverchase Galleria. The reduction of competition by taking away the long-dominant name of Parisian could also prove inviting for often-mentioned names like Dillard's, Nordstrom and Neiman Marcus.

"I'm thinking at the end of the day, there will be less retail vacancies in the larger boxes than there are today because of that opportunity," said Russell Cunningham, president of the Birmingham Regional Chamber of Commerce.

Some of the more obvious names missing from Birmingham may find it easy to walk into empty space inside a successful shopping center or mall, Cunningham said.

"For big companies like Neiman and Dillard's and Nordstrom's, an entry into a market has to make financial sense," Cunningham said. "When opportunities don't have any organizational costs attached to them and they can just come in, change the name on a building and put the merchandise in there, that makes it easy for them to move in."

The Galleria could prove to be pivotal in the Birmingham area's landing a new department store.

Belk owns the 255,000-square-foot Galleria store. After it completes the purchase of Parisian, it will also own the 190,000-square-foot anchor position there.

The 136,000-square-foot former McRae's space, another anchor position, has been vacant for over a year. It is the subject of a lawsuit between owner Pizitz Management Group and Parisian's current parent company, Saks Inc.

A hearing on whether that case will be decided by a jury or by arbitration is scheduled for this month.

According to Michael Pizitz of Pizitz Management Group, there have been no offers for the space from other department stores. "We have had basically no interest as far as anyone making a formal proposal."

After the Belk-Parisian store consolidation, there could be two empty anchor positions at what may be the state's best-known shopping destination.

"It's so dominant in the Birmingham region that if you only had one chance to get here, that would be the place to put it," Cunningham said.

The Galleria's owner, General Growth, would also like to see all vacancies filled.

"However, Parisian will retain its identity until fall 2007 and our immediate goal is to focus on their continued success," said Tracy Gatewood, spokeswoman for the Galleria.

Tutwiler Farm, perhaps
Eyes also will be on Colonial Pinnacle at Tutwiler Farm, a retail development by Colonial Properties Trust in Trussville set to open in October.

That project calls for a 100,700-square-foot store that Parisian will own but which will become the property of Belk when the acquisition is complete. Belk is already locked into a 20-year lease for its own 95,800-square-foot store at the development.

Retail executives believe Belk will not operate in both locations, which would create a vacancy at one of Birmingham's most anticipated new centers.

Richard Yeilding, whose family ran one of Birmingham's most lasting and successful department store chains in Yeilding's, said a retailer coming into Birmingham now has to be assured of some degree of success to take such risks.

"Because Dillard's has a presence in Alabama in all markets except Birmingham, they now have to look for a strategy to have multiple stores here," said Yeilding, who now works with Colonial Properties Trust in developing new centers. "They can't compete with all the stores Belk and Macy's have without at least a three-store strategy. They've always been interested in Birmingham, but it always had to be a matter of knowing how they fit in."

Yeilding sees Nordstrom as an outside possibility, with Neiman Marcus being more of a long shot for a market the size of Birmingham.

"There is a difference between Nordstrom's and Neiman Marcus in that Nordstrom does have a broader appeal whereas Neiman is more focused on the upper price points," he said.

For Nordstrom, a decision could come down to population, Yeilding said.

"It's a challenge for them to get a business projection that gives them the type of volume they need for their stores to be successful," he said. "Certainly, it's a developer's job to try to prove to them that they can achieve that."

Any hope of landing Neiman Marcus in the Magic City may hinge on the level of profitability Saks Fifth Avenue has had at The Summit.

"Anybody on the upper end is going to play off their perception of Saks Fifth Avenue's relative success in this market," Yeilding said.

Mum's the word
Despite all the talk about the other department store chains, the chains are remaining hushed.

Julie Bull, spokeswoman for Dillard's, would not speculate on whether the Belk-Parisian deal has boosted Birmingham back onto the company's radar.

"We look at markets for a number of reasons and a number of factors," she said. "We have not made any announcement regarding Birmingham."

Amy Pobft, spokeswoman for Nordstrom, was similarly noncommittal.

"We don't have any current plans for a store in Birmingham," she said. "Regardless of what's happening with Belk and Parisian, we continue to try to find the right opportunity at the right time. We're looking at opportunities all the time, and while we think that Birmingham is great, we just don't have any current plans."

Yeilding said the thing that may be missing in the expectations for new stores is how successful Belk may be as a competitor now that it will have nearly 30 stores in the metro area.

"Belk has proven in a market like Charlotte that they can run a store like at SouthPark that is on par with any store in the country," he said. "Belk has shown over a 50-year period that they know how to run small-market stores and big-market stores. They've taken on Atlanta in a way that has been extremely profitable and used a very good business strategy in a place where there was extreme department store competition."

Cunningham agreed that the retail climate after all the gyrations may end up better.

"Setting aside the intellectual effect of losing one of our favorite Birmingham-based, longtime department store names, I think at the end of the day from an economic standpoint we will be in better shape," he said.

Parisian has rich, eventful history

Industry changes result in end of era

MICHAEL TOMBERLIN
The Birmingham News

BIRMINGHAM, Ala. -- It is quite possible that the last Parisian sign could come off the last store exactly 120 years to the day two sisters hung their shingle for The Parisian Dry Goods and Millinery Co. on a building at 2030 First Ave. North.

The date was Oct. 5, 1887, and was the start of a rich retailing history that survived the Great Depression, a failed leveraged buyout, multiple ownerships and the persistent ebbs and flows of the retail business.

Charlotte-based Belk Inc. is buying Parisian in a $285 million deal and said it will launch a rebranding campaign of all of the stores into Belk in the third quarter of 2007. That last sign change may very well take place on Oct. 5, 2007.

Few will note the passing of the Parisian name as nostalgically as Donald Hess.

"Of course from a family perspective and just as a citizen of Birmingham, it is very disappointing and very sad for us," Hess said Wednesday. "We feel like for three generations of my family at least we had a great run and had a lot of fun at it."

His grandfather, Carl Hess, purchased Parisian in 1920 and soon brought William Holiner on as a partner.

They sought to establish Parisian alongside the bellwethers of Birmingham retailing at the time - Pizitz, Blach's, Kress, Loveman's, Burger-Phillips and Odom-Bowers & White.

Just as Parisian moved into a larger more exclusive space, the Great Depression hit and temporarily did the company in until it emerged after a restructuring.

Donald Hess' father, Emil, took over the company after World War II along with Holiner's son-in-law Leonard Salit.

They sought to distinguish themselves from competitors with the growing popularity of credit cards. Where others were charging 1.5 percent interest, Parisian began offering six months with no interest - a novelty for the business at the time.

That and similar merchandising and customer-service initiatives propelled the company's growth. In 1963, Parisian began expanding into Five Points West, Decatur, Vestavia Hills and Eastwood.

Hess became president of the company in 1972, and expansion and the growth continued well into the 1980s as Parisian became known as the place for cutting-edge fashion.

"We continued to expand the business and take the things we thought were great about Parisian into any new market we went to," he said.

Parisian went public in 1983. In 1988, Australia's Hooker Corp. bought the company for $250 million. A year later, Hooker filed for bankruptcy, allowing the Hess and Hal Abroms families to regain Parisian and continue with its growth.

"There were a lot of days that were just spectacular in terms of the volume we generated, the people we were able to hire, the excitement of our employees, the excitement of the holiday business, reaching milestones in terms of sales," Hess said. "There were a lot of those days. There were days when we didn't make the numbers and the frustration of how do you do that, particularly as the industry started changing so dramatically in the'90s."

A discussion over a golf game with Proffitt's CEO Brad Martin in 1996 led to Parisian selling to that company for $450 million. Proffitt's moved its headquarters to Birmingham from Knoxville. In 1998, Proffitt's bought Saks Fifth Avenue and became Saks, keeping its headquarters in the Magic City.

Hess said he does not regret selling the company.

"I don't have a crystal ball or a look-back ball. I don't know where the company would be today if we hadn't decided to sell to Brad and Proffitt's 10 years ago; whether we could have made it on our own or not," he said. "I think it would have been a very tough road for us.

"I know the industry was changing," he added. "I think we had to be part of a bigger corporate structure at the time to rationalize the costs."

When Saks announced it planned to sell Parisian a few months ago, many wondered if Hess might make a move to regain the company as he did in the late'80s.

"There were a lot of rumors to that effect," he said. "It's a tough business that has changed dramatically. It would be presumptuous for me to assume I could jump back in there and make a difference and run that business as a free-standing business."

On Wednesday, Belk and Saks announced the latest deal, putting the Parisian name and history in the hands of rapidly expanding Belk, which, like Hess recognized a decade ago, can't afford to operate it as a stand-alone company and is opting instead to assimilate it into its existing brand.

But Hess said he can't be critical of the decision to sell to Belk, especially since he helped make it.

"I can't say it's unfortunate," he said. "I'm on the board of Saks. I was involved in the process over the last several months and the decision to put Parisian up for sale. I was involved with the board meeting when the decision was made (Tuesday)."

`Good old days':
For many, Parisian has been sort of in a state of flux since Proffitt's bought it a decade ago and ownership shifts and leadership changes have left the stores short of where they had once been.

But Hess said retail is not only cyclical, but it is evolving. There are reasons why the Pizitz, Kress, Loveman's and other stores don't exist anymore.

"I think people always want to remember the `good old days.' That doesn't mean the current days aren't also good days," he said.

"We do have some businesses that weren't around during the'70s and'80s when we were expanding so dramatically," he added. "We have some stores that weren't even around then and now they're coming around. Other businesses will grow and flourish in this town. We did have a great presence of retailers headquartered here, but that was true of most cities because that's how retail worked. It's no longer true of most cities because the industry has changed."

Instead of looking back with longing, Hess said he prefers to take pride in what Parisian accomplished.

"I feel like Parisian and the leadership of Parisian and the associates of Parisian have made a major impact on this community in just being good citizens and concerned about its well-being," Hess said. "We created a high standard so that other companies in some cases had to raise their standards because customers talked about the service they got at Parisian."

Belk reaches upscale

Belk, Hanes Mall, Winston-Salem, North Carolina. Lower level mall entrance. Photographed with camera phone 8/02/05.

Purchase may improve appeal to women

Nichole Monroe Bell
The Charlotte Observer

CHARLOTTE -- Belk Inc. said Wednesday it will buy Parisian department stores from Saks Inc. -- a move that will take Belk to three new states and could bring higher-end women's clothing and shoes to the chain.

In a $285 million cash transaction scheduled to close in October, Belk will purchase Parisian's Birmingham, Ala., headquarters and 38 stores in nine states across the Southeast and Midwest.

The purchase includes stores in Indiana, Michigan and Ohio -- states where Charlotte-based Belk has no stores. Parisian has no stores in North Carolina; in South Carolina, it has stores in Charleston and Columbia, where Belk already operates.

Belk is the nation's largest privately owned department store company. After the purchase, Belk will operate 317 stores in 19 states.

Belk spokesman Steve Pernotto said the purchase works well for Belk because both companies are based in the South and have a similar operating philosophy. For example, he said, both stores have similar credit card plans and customer perks such as free gift wrap.

Belk plans to rebrand the acquired stores as Belk in the third quarter of 2007. Employees in those locations will be offered positions with Belk.

Britt Beemer, who heads the Charleston-based market research firm America's Research Group, said Belk's success will depend on whether it takes advantage of Parisian's strengths.

"Belk has always been known as a pretty (middle of the road) department store and not as fashionable in its merchandising as Parisian has been," Beemer said. "The question will be will the Parisian customer like the merchandising that Belk presents?"

Pernotto said the differences between the stores can be used to bolster each. Parisian, he acknowledged, is stronger in higher-end women's apparel and women's shoes. On the other hand, Belk does better with men's sportswear and home merchandise, which can be used to strengthen Parisian stores, he said.

The Parisian deal marks the second time Belk has purchased stores from Saks, which is shedding mid-market department stores to focus on its Saks Fifth Avenue, Saks Off Fifth and Club Libby Lu stores. In 2005, Belk purchased 47 Proffitt's and McRae's stores from Saks in a $623 million deal. With those stores part of the chain, Belk saw its profits for the year increase more than 10 percent, reaching a record $136.9 million.

Parisian wasn't for sale when Belk made the Proffitt's and McRae's purchase, Pernotto said.

The Parisian purchase also pushes Belk deeper into the mall market, an area where growth has been slowing in recent years. About 80 percent of Parisian stores are based in malls compared with Belk, which is about equally divided between malls and free-standing stores.

Belk isn't worried.

"We don't see that as a big risk," Pernotto said. "That's only a problem if your entire strategy is entirely mall-based."

Wachovia Securities, the investment banking unit of Charlotte-based Wachovia Corp., advised Belk on the Parisian transaction.

Belk buys Saks' Parisian stores

Note from Steve: You heard it here first

RICK ROTHACKER
rrothacker@charlotteobserver.com

CHARLOTTE - Belk Inc. on Wednesday said it was buying Saks Inc.'s 38 Parisian department stores with locations in nine states in the Southeast and Midwest.

The Charlotte-based department store chain said it will pay $285 million for the ownership of the Parisian stores and will assume operating leases for leased locations. The stores had combined total sales last year of about $723 million. The deal, which has been approved by both boards of directors, is set to close Oct. 2, pending regulatory review.

Upon completion of the transaction, Belk will operate a total of 315 stores in 19 states, including two new Parisian stores set to open this fall.

"This is another excellent opportunity for Belk to expand its store base and further strengthen our market leadership in Alabama and other key markets within our existing footprint," said Tim Belk, chairman and CEO of the chain, said in a statement.

The department store plans to rebrand the acquired stores as Belk in the third quarter of 2007. The company will continue to operate the Parisian corporate offices and a distribution center through March 2007. Employees in those locations will be offered positions with Belk or severance packages.

Last year, Belk bought 47 Proffitt's and McRae's department stores from Saks and later branded 38 of them as Belk stores.

Wachovia Securities, the investment banking unit of Charlotte-based Wachovia Corp., advised Belk on the Parisian transaction.

Belk to buy Parisian?

According to unnamed sources, Charlotte, N.C.-based Belk, Inc. has apparently entered into an agreeement to purchase a majority of the assets of Parisian, a specialty department store chain based in Birmingham, Ala. from Saks, Incorporated.

Terms were not released, and neither company has officially announced the deal.

Further information on the sale will be proviuded as it becomes available.

china man

I realize posting this will probaly cement my reputation as a fruity eccentric, but I thought I'd mention I started on my china service last night at Belk.

Stop laughing and pointing.

I have always been facinated by china, crystal and flatware. I guess it's hereditary, considering how much of the stuff Mom and I have amassed at the club. My aunts on Mom's side are somewhat obsessed with it as well.

I started on the path to getting my own service a few years ago with the flatware. I saved money each payday for about 3 months to get 12 place settings and a host of serving pieces from the Easton pattern stainless flatware by Oneida. The next goal was to get this china, but I had other priorities and put it off for a while.

It's the Eternal pattern by Lenox. I'm getting the 5-piece place settings and the coordianting accent plate. It's crafted of ivory fine china accented with 24-karat gold in a timeless pattern that will likely never be discontinued.

I'm serious. Stop laughing and pointing.

The price of this stuff is a little exorbinant (though not as bad as you might think), so I devised a plan to buy a setting and accent plate each payday until I get all the dishes I want. That way, I don't go into debt for it, and I get what I want.

Eleven more to go.

your happy shopping store

If you have any memories of shopping at Belk stores in the 1970s, this should bring back a wave of nostalgia. I found this old bag in my basement in pretty horrible shape, so I decided to make a scan of it for posterity.

the full Northlake Mall Grand Opening photoset

I'm on a photgraphic roll tonight, y'all.

Check out my trip to the (then) newly-opened Northlake Mall (Charlotte, North Carolina) on September 16, 2005. I posted some of the photos before here in spotted at northlake.

This post is cross-posted at LiveMalls.

Want more Northlake? Check out these LiveMalls posts:
Belk, Northlake Mall
Dillard's, Northlake Mall
Hecht's, Northlake Mall
Dick's Sporting Goods, Northlake Mall