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FALL 2015
MARCH 2015/$7.50
BELK
RETAILER
OF THE YEAR
TALKING
WITH
NICOLE
RICHIE
Style
Stats
ANNUAL ACCESSORIES
CENSUS REPORT
ACCESSORIES MAGAZINE’S 2015
RETAILER
OF THE YEAR
MODERN. SOUTHERN. STYLE.
RETAILER OF THE YEAR
MODERN.
SOUTHERN. STYLE.
America’s largest family-owned and operated fashion department store updates
its multigenerational legacy with a rebranded image, multimillion dollar investments
and a new flagship strategy. By Lauren Parker
M
odern. Southern. Style.
That’s the new tagline for
Belk’s rebranding strategy
and it is very fitting. With
300 stores in 16 Southern
states, Belk’s 125-yearplus success story shoots down some
myths and stereotypes. First, there’s the one
about things moving slower in the South,
which Belk’s store expansions and
multimillion dollar investments prove wrong.
Second, there’s the myth that private
companies operate in secrecy, which Belk
dispels every quarter they publish their
numbers. And last, the myth that a Southern
store wouldn’t have a presence north of the
Mason Dixon line, which Belk certainly does
through its borderless digital platform and
national marketing programs.
The third-generation department store is
nothing if not modern, and 2014 marked its
fourth consecutive year of comp store sales
growth (2.9% on top of a prior-year 6.3%)
with total sales passing the $4 billion mark,
nearly double that of 10 years ago.
INVESTING IN THE FUTURE
Belk has invested $700 million over a threeyear period to fund strategic initiatives—half
of which is going toward store renovations
and openings and half into technology. The
new Galleria Dallas flagship opened last
year was a $20 million renovation of a
former Saks store. Belk has also invested
heavily in planners (now there is one for
16 ACCESSORIES
each buyer versus the former 3.5).
A high-profile national marketing
program—the Belk Bowl, Project Runway,
CMA awards—is growing Belk’s exposure
outside the South, especially via digital.
Other money has gone to investment in IT
infrastructure and Belk.com, restructuring
the merchandising team, launching new
private brands, stepping up its marketing
and advertising, investing in strategic
sourcing and most importantly, building
what Belk calls a “strong service and sales
culture” through several new programs.
Location & Size: All Belk stores are in 16
contiguous Southern states. Total combined
selling space: 23.4 million sq. ft. Individual
stores range in size from 40,000 sq. ft. to
300,000 sq. ft. with the average size of
approximately 92,000 sq. ft.
Flagships: The Galleria Dallas marked Belk’s
15th store in Texas and first flagship. There
are currently 21 flagship locations.
Renovations: $270 million was invested
over three years for remodeling and
expanding more than 60 stores and
replacing a store in Corinth, Miss. In many
stores, shoe departments were expanded
from an average of 6.4% of the total sales
floor space to around 10%.
E-Commerce: Belk.com, which has
experienced triple-digit growth, got a fouryear, $53 million investment, including a new
515,000 sq. ft. fulfillment center in
Jonesville, SC. The fastest-growing area at
Belk, e-commerce is now a $300 million
business, with 20% of sales coming from
outside Belk’s southern footprint. Q3 online
sales increased 46% for the period.
Accessories to total: 10% and growing.
Private Label: At 30% of total sales, private
brands are one of Belk’s fastest growing
businesses in sales and margins.
Advertising and Marketing: In 2010, Belk
unveiled a new logo and tagline—Modern.
Southern. Style. It has continued to push its
updated image with increased online ads
and social media.
Merchandising and IT: Project IMPACT
| MARCH 2015 | FIND MORE AT ACCESSORIESMAGAZINE.COM
(Improving Merchandising, Planning,
Allocation, Core Processes and Tools)
started Belk’s merchandising restructuring,
adding new planners and creating 59 new
planner/buyer teams. That program evolved
into Project SMART (Strategic
Merchandising and Retail Technology), a
major technology infrastructure upgrade.
Customer Service: A 36-month-long
initiative called Revitalizing Our Customer
Care was focused on “reducing or
eliminating non-selling tasks,” giving sales
associates freedom to attend to customers.
Sourcing: Belk saved $13.8 million on
expenses, margins and capital expenditures
in fiscal 2011 with a new sourcing program.
Annual Sales:
FY 2014: $4.04
FY 2013: $3.96
FY 2012: $3.78
FY 2011: $3.58
billion
billion
billion
billion
Employees: 23,000 (store level, corporate,
division offices and distribution centers)
Charities: Each year, Belk gives 2.5% of
pre-tax income back to the community. In
2013, Belk (along with associates,
customers and vendors) gave $19.3 million
back to the community. The three main
focuses are Breast Cancer research,
education and local community.
Belk Gives on the Go: Mobile
mammography centers offer screening.
Points of Light Institute: Southern schools.
Belk Service Learning Challenge: Partnered
with Discovery Education on a middle
school initiative.
125+ YEARS STRONG
Belk’s recent 125th anniversary gave back
significantly to the community with over
10,000 associates volunteering 21,000 hours
during the 125 Days of Service program.
Two million people entered Belk’s 125 Days
of Prizes drawings, capturing 175,000 new
emails. Consumers sent in 24,000 stories
about the role Belk has played in their lives.
TIMELINE
1888-93
1895
1924-34
1952
1955-56
1963-68
1970
1988
1996
1997
1998
1999
2000
2001
2002
2004
2005
2006
2007
2009
2010
2011
2012
2013
2014
18 ACCESSORIES
26-year-old William “Henry” Belk opens bargain store “The New York Racket” in Monroe,
N.C. with $750 in savings. He persuades brother Dr. John M. Belk to leave medicine and
create Belk Brothers Company, opening dozens of stores with managers they train, give
part ownership to and place their names on the building next to the Belk name.
Henry Belk moves to Charlotte to open the company’s fourth store, flagship and base.
Belk opens a NYC buying office to supply its 30 Southeastern stores then establishes a
Charlotte buying office ... Belk opens 27 new stores.
Henry Belk dies at age 89. His six children assume positions in the company.
Belk Stores Services, Inc. is formed, incorporating the company’s buying and other
support services from offices in Charlotte and NYC ... Belk acquires Charlotte-based
Efird’s dept. store and gains 50 stores in the Carolinas.
Belk celebrates its 75th anniversary with more than 400 stores and 13,000 employees
operating in 19 states ... Belk adopts “Big B” corporate image and marketing.
Belk opens 220,000-square-foot flagship store at SouthPark Mall in Charlotte.
Belk celebrates 100th anniversary with approximately 350 stores in 16 states.
Belk purchases 42 Leggett department stores in Virginia and other mid-Atlantic states.
Thomas M. “Tom” Belk, president of Belk stores and Henry Belk’s son, dies at 71.
Belk consolidates 112 separate store corporations into a single company, Belk, Inc., to
create the nation’s largest privately-owned department store organization. Belk adopts a
strategic plan – New Focus for the New Century – to make Belk “the customer-focused
department store that delivers superior quality, fashion, value and service.”
Belk consolidates 13 operating divisions into four expanded divisions headquartered in
Charlotte, Raleigh, Greenville, SC and Jacksonville, Fla. Belk completes a store swap
with Dillard’s to strengthen its position in key markets like Columbia and Jacksonville.
Belk.com is launched.
Belk consolidates six regional distribution centers into one South Carolina facility.
Belk unites its merchandising and marketing functions into a new merchandising,
planning and allocation and marketing organization based in Charlotte.
John M. Belk, former Charlotte mayor and son of company founder Henry Belk, retires
after nearly 60 years as chief executive. Three of his nephews, and Tom Belk’s sons, are
appointed new positions: Thomas M. “Tim” Belk Jr. is named chairman & CEO; H. W.
McKay Belk, president & CMO; and John R. “Johnny” Belk, president & COO.
Belk purchases 47 Proffitt’s and McRae’s stores from Saks Inc. and opens 12 new
stores. Belk sells its credit card business to GE Money Bank, launching a long-term
strategic marketing and credit services alliance.
39 of the former Proffitt’s and McRae’s stores reopen as Belk ... Belk purchases 40
Parisian department stores located in nine Southeastern and Midwestern states from
Saks Inc. ... Belk establishes a fine jewelry division at its Charlotte headquarters to
oversee the operation of Belk and Co. Fine Jewelers shops in 148 stores.
John M. Belk, chairman emeritus, dies at age 87, having served as Belk CEO for more
than 50 years ... 25 Parisian stores celebrate their grand opening under the Belk name.
Belk realigns its four operating divisions into three, closing The Belk Central Division
office and integrating those stores into Northern, Southern and Western Divisions.
Belk’s corporate brand identity gets a new logo and tagline: Modern. Southern. Style.
Kathryn Bufano is named president and CMO, succeeding McKay Belk, who remains
vice chairman and a director ... 305 stores generate a total of $3.5 billion in sales ... Belk
implements Facebook, Twitter, YouTube, e-mail, mobile phones and a Belk blog ... The ecommerce fulfillment center is expanded by 117,000 square feet.
Belk becomes the title sponsor of the Belk Bowl college football postseason game.
The “flagship” strategy launches as part of its $700 million program to reach sales of
$6 billion by 2017 ... The Southern Designer Showcase program begins, promoting 15
Southern contest winners in 44 stores for three months. Brands range from emerging to
established designers and Belk produces their lines.
Cynthia Cynthia Rowley collection launches with in-store shops in 149 doors, and
includes apparel, handbags, jewelry, scarves, accessories and small leather goods,
priced $90 to $200. Shoes launched in the fall ... Belk marks 125 years in business, with
300 stores, 29 million feet of retail space, and $4 billion in sales annually.
Belk opens a three-story, 180,000 square-foot store at the Dallas Galleria, Belk’s first
Texas flagship ... David Zant named president & CMO upon Kathryn Bufano’s retirement.
CHAIRMAN
REPORT
A TALK WITH TIM BELK, CHAIRMAN AND CEO
Belk is over 125 years old,
founded by your grandfather
William Henry Belk and then
helmed for many years by your
father Thomas M. Belk! What’s
been its secret to success and
longevity? We’re over 125 years
old but in many ways we actually
feel like a new company. We’re
willing to invest in our growth and
changes we need to make. My
uncle said, “You’ve got to be
willing to change before you need
to,” and we work hard at building
skills around innovation. Retailing
is changing so fast now, so we need to
encourage people to try new things, but
people are sometimes afraid of taking risk or
being criticized for failure. So we encourage
people to take risks and approach things
differently. Think of it as “Learning to fail
cheap, fast and often.” That’s not always
intuitive to everybody.
What’s the process? We had everyone read
Game Changer by A. G. Laufley—who ran
Procter & Gamble and he wrote the ‘how to’
book for companies on innovation. We then
got our leaders, our EVPs, to submit ideas
via a portal. And just by submitting ideas you
get recognition. And if your ideas get picked
for a feasibility study you got additional
recognition, and if they get piloted you might
meet your business objectives. It’s win-win.
We send the message to people that we
value your opinion and want your ideas.
Any anecdotes of growing up in the Belk
family business? (Laughs). I have a lot of
memories of driving out to the beach for
vacation and Dad would stop at each of the
Belk stores along the way. Sometimes he’d
drag us into the stores and sometimes we’d
wait in the car and wonder if we were ever
going to get to the beach! When I first
joined the business, I have lots of memories
of walking the stores with Dad where he’d
pull hang tags on new lines he liked and
look up the RN numbers. And I remember
getting accosted by security in some stores
because he was pulling hangtags.
20 ACCESSORIES
What about Belk’s goal to hit
$6 billion in sales by 2017?
We’re not tracking to hit that as
targeted (we figured 3.4% to 4.5%
comp growth when we projected that)
so we’re in the process of creating a
new 3-year plan that matches the
lower range of comp growth we’ve
seen. Our $700 million investment
includes a number of technology
investments. We recently replaced
40% of our infrastructure to put in
more ERP systems and a tech
platform for omnichannel. We also
replaced most of the merchant tools.
Did you ever think of not going into the
Belk family business? Was that even an
option? After college I wasn’t sure what I
wanted to do, and I thought it was better to
work somewhere else first and then decide
that I really wanted to work at Belk instead
of the opposite. I worked in politics for three
to four years then realized that joining Belk
would be a good move. I got my MBA at
business school then joined one of Belk’s
partner groups in Gastonia, N.C.
Congratulations on being named Charlotte
Business Journals Person of the Year for
2013. What’s your business philosophy?
The culture in a company is so important.
What do people say about the company
when no one is listening? What is the water
cooler talk? What are the barriers that stand
in the way? Fear of failure, or lack of
empowerment. And if you reduce those
barriers, you can unlock that full potential.
How do we develop and address awareness
of our strengths and weaknesses?
How does being a private company help
Belk meet its goals? In some ways we are
like a public company because we publish
our results, but we don’t need to talk
endlessly about quarterly results.
Sometimes in business you make
investments and you don’t see the benefits
on the schedule you’ve planned, and as a
private company we can ride through those
time periods.
How do you let people know you are
Southern-based, family-owned and
community-focused? First, we had clarify
who is Belk and how to differentiate
ourselves. We thought we could own
Modern. Southern. Style. and articulate it in
our service levels and assortment. We took
baseline studies with Toth + Co. marketing
agency and were surprised to learn that
people who knew Belk didn’t necessarily
know we were Southern-based, family
owned and investing in the community. They
said if they knew those things they would
like us more. We worked hard through our
125th anniversary to get that message out
and it’s raised the bar for what people
expect from Belk.
And now you export that Southern
Lifestyle message? That’s really important
as about 20% of our digital business comes
from outside our footprint. That surprised
us. The digital marketplace knows now
boundaries so we’ve gotten involved in
national events like the Belk Bowl (football is
a way of life in the South), CMAs, Project
Runway. There is appetite for the Southern
Lifestyle. Think about the California Lifestyle
…that was all exported from California.
Will you ever expand up North? Cue the
black clothing! We’re looking looking to
expand in our footprint in contiguous
markets. There’s lots of population growth
in the South.
STRATEGY
MEETING
A TALK WITH DAVID ZANT, PRESIDENT AND CMO
David Zant, President and Chief Merchandising Officer, is a retail veteran with more than 35 years of
department store experience that includes holding top executive merchandising positions with Belk, Inc.;
The Bon-Ton Stores; Saks, Incorporated; and the former Mercantile Stores Company, Inc. Zant was
named President and Chief Merchandising Officer of Belk, Inc. in August 2014 after serving as the
company’s Executive Vice President and GMM of Men’s, Kids and Home since 2008. He originally joined
Belk as President of the company’s former Central Division in Charlotte in 2001, and subsequently served
as corporate EVP and GMM until 2005, when he joined The Bon-Ton Stores, Inc. as Vice Chairman of
Private Brands, Merchandise Planning and eCommerce. Prior to joining Belk in 2001, Zant was Senior
Vice President and GMM of the department store division of Saks, Incorporated and before that held key
merchandising positions at the former Mercantile Stores Company, Inc. He is a graduate of the University
of Louisville in Kentucky.
How do the Belks make you feel part of
this multigenerational family? The Belks—
Tim and Johnny—are very collaborative by
nature, and being a member of the senior
team, their style is involvement and
inclusion on decision making. It’s a very
integral part of the Belk culture.
How does Belk plan for the future? I credit
Tim Belk—even if there is pain short term,
he will never sacrifice the long-term vision.
He always makes sure we’re doing the right
thing strategically for the business and that
is very refreshing.
Are you happy to be back in women’s
where before you were handling men’s,
home and kids? Yes! Women’s is one of the
areas where we see the most opportunity.
The fashion pace is certainly faster than
other areas and there are some great things
happening in women’s and our private
brands. The outlook is very bright for 2015.
What’s new in your approach? We’re
always thinking, ‘How do we get faster to
market?’ We have established a Test and Go
process where we encourage our merchants
to take small bets on new approaches;
things that aren’t going to create any
material impact on the business but when
they do land on something, we’ll see how
quickly we can exploit it. This is not
something that has universally been part of
our business but we’re trying to include it in
our daily approach going forward.
What can we expect next at Belk?
In looking at where we’re going with the
business over the next three years, we
worked this past fall to continue to define
22 ACCESSORIES
where we are and where we’re heading;
leading the team in a direction where the
company needs to be strategically.
What is your Millennial strategy? We’re
very interested in growing the younger
portion of our business. We’re really solid
in the 40 and up customer but going
forward we want to appeal to the Millennial
customer. And the businesses we want to
build and grow at significant pace target a
younger customer.
We’ve really evolved our junior business
over the past few years, where our core
customer is not the teenage customer but
rather more of the 20something customer.
So our department is providing great value
but also fast fashion. The retail business
models that are working right now follow
the 20something more than what you’d
think of as traditional teen retailers.
Our juniors business has been very
strong this past year and we’re evolving
that going forward. We are doing some
tests this spring to come with a different
environment and a new name for “juniors”
because the product mix is evolving.
What other areas are expanding? We’re
developing the active business, which we
weren’t even in a few years ago but are
growing fast. We’re also looking to grow the
more modern and contemporary business to
gain traction with that younger customer.
Belk recently added 40 more planners.
How has this improved operations? Four
years ago, when we did Project Impact, we
had about 3.5 buyers to every planner. To
continue to build the business and put the
resources behind it, we upped that ratio to
1:1. We built up the planning organization
substantially and it was like putting fuel in
the rocket—it really propelled us and made
a difference. This allowed us to better
analyze, plan and allocate our business than
we had before. Buyers and planners travel
as a team; it’s essentially a left brain/right
brain situation…creativity and numbers!
You’ve been called “opportunistic”
and “predatory” in your business
approach by your teams. Retail growth
in general is not increasing at the same
rate as competition is increasing, so we
have to maximize the opportunities that are
out there. And yes, predatorial—to be able
to pounce on those opportunities. Belk is
very encouraging about taking calculated
risks regarding potential opportunities.
When I was in the GMM pyramid before, I
would give out stuffed tiger awards at
quarterly meetings. We really encourage,
recognize and reward people who are
doing great things. It’s all about motivation.
You left Belk some years ago but came
back. Did you miss the South? Immensely.
I’m originally from Louisville, Kentucky. I was
with Belk for almost four years but left for
three to go up North to Bon-Ton. I think
Charlotte is one of the best kept secrets in
the country—beaches, mountains, four
seasons but still mild winters! Belk is proud
of its Southern heritage and positioning,
which is all reflected in our rebranding from
three years ago. This includes our new
tagline Modern. Southern. Style., Charleston
Fashion Week, Southern Designer
Showcase and our newest addition to The
Road South campaign: the second year of
our Southern Musician Showcase.
Congratulations to
our partner Belk for being
the 2015 Retailer of the Year!
Tim Belk, Chairman & CEO; David Zant, President & CMO; David Neri,
EVP/GMM Center Core; Kathy Thomas, VP/DMM Accessories & Fine
Jewelry; Jon Pollack, EVP Sales Promotion, Marketing & E-Commerce; Beth
Crosby and the entire accessories buying team.
FASHION
INFLUENCE
Colorful fashion initiatives keep Belk’s trend messages on point
Arlene Goldstein is Vice President of Trend Merchandising and Fashion Direction. With more than 25
years in the industry, she also leads Belk’s special events department and is instrumental in maintaining
Belk’s image as a leader in the retail industry. Early in her career, she served Parisian as Director of Special
Events and later as Fashion Director. She was promoted to Vice President of Trend Merchandising for
Saks, Inc., bringing color and trend direction to the various department store operating divisions under the
Saks, Inc. umbrella. Goldstein travels to fashion capitals in the United States and around the world, such
as New York, Paris, London and Milan, to explore emerging trends in order to bring her special brand of
style back to Belk. She is constantly in demand as a fashion resource for stylists and fashion publications
throughout the country and works with Belk merchandising, private brands and marketing to set the tone
seasonally, bringing a distinct and trend-right point of view to Belk customers.
A
labama native Arlene Goldstein is
born and raised in the South, so
she is the perfect embodiment of
Belk’s modern southern style—
polished, pulled together and a
lover of color and accessories.
She is credited with building the fashion
office at Belk as well as bringing lots of best
practices from the industry to the retailer. Her
fashion and merchandising initiatives have not
just helped Belk stay on the forefront of
fashion, but help the media and the consumer
know it as well. Here, a look at her initiatives:
FASHION BUZZ: Every week, Goldstein sends
out the Fashion Buzz newsletter to all the
merchants in the building, featuring things she
finds relevant just as she gets a hint of it. She
travels to Europe two times a year, usually with
the private label apparel team, but always
scouts accessories and the ‘beat on the street.’
“Fashion is an evolution, not a revolution,” she
says. It’s important to see the whole curve.
Europe is a sea of early adopters.”
MEDIA TOUR: Eight years ago, when she
started at Belk, Goldstein came up with the
idea to do a twice-yearly media PR tour for
Belk, showing the consumer press—TV,
magazines, newspapers, online—what’s
coming to the stores for the next season.
“I remember telling McKay Belk about this
plan, and he was surprised as Belk had never
done this before,” she says. “But a media tour
is the best way to let everyone know our point
of view. I travel to Raleigh, Atlanta, Dallas and
Birmingham to give information to the visual
teams on how to set up vignettes in the
stores, then we invite the media in. Sometimes
24 ACCESSORIES
I use models, like in Dallas.”
Having been a schoolteacher earlier in her
career, Goldstein can’t resist a little pop quiz
now and then. “After one of my presentations,
I turned to everyone and said, “Ok, now
what’s the fashion takeaway from all this?’ I
want to make sure everyone was listening!”
MOST WANTED LIST: “People used to tap me
on the shoulder while I was at the grocer to
ask, ‘Arlene, I can’t have all the trends so what
are the most important, strategic ones for the
season?’ So I started the Most Wanted List for
my merchants. They react, take the list to
market to see what is sustainable and that
becomes the final 10-piece list. Then Visual
Merchandising creates the in-store visuals,
and Belk.com finds a way to make it happen…
it’s all a great way to maintain our position in
fashion leadership.”
For Spring accessories, Belk is calling out
the statement earring, the glitzy sandal and
the kimono layering piece. Some, like the
kimono, will be double-exposed in sportswear
as well as fashion accessories with a poster.
“If we can double expose something, we do!”
STYLE GUIDE: Another new direction for the
Most Wanted List is to accessorize it for the
benefit of consumers. For example, instead of
just showing the soft pant or jumpsuit on a
figure as a Most Wanted item, now Belk is
laying it down flat and doing a Style Guide
with lots of accessories placed nearby to
show what it goes with…very much how a
fashion magazine would show it. Captions
explain it all in detail. “The customer is really
hungry for that kind of trend information,” says
Goldstein.
CHARLESTON FASHION WEEK: Belk is an active sponsor and participant in this key
Southern fashion event, not to mention the first retailer to have its own tent. In the past,
Belk has shown its private label brands like Crown & Ivy on bust forms, but now it also
hosts runway events to a sell-out crowd of 1,000 people. Runway shows highlight a few
key trends and close with a guest designer. Last year, Steve Madden was the guest
designer (“That was a hoot!” says Goldstein) and this year, Trina Turk will represent (“We
already carry Trina Turk and we love her…the colors, patterns, jewelry, shoes…it’s all so
amazing and perfect for our customer.”)
THE NEW NOW: Belk has started a list of
emerging items in about 50 stores called
The New Now. “While the Most Wanted List
is more general, like The Statement Earring,
this New Now list is more specific. “This is
where we show something that is just
happening, like the front-back earring or the
mini bag. It’s all done with signage and it’s
up to the stores on how to interpret it.”
TRAINING VIDEOS: Goldstein started
creating 11-minute training videos of the hot
trends and items for the season, which she
shows at corporate strategy meetings when
the executives come in from the stores. “I’m
filmed against a green screen doing the
introduction then we mix in what’s hot and
what’s in the stores. We also started doing
‘Popcorn and a Movie’ sessions with 150
buyers (I tell them not to tell anyone how
much fun we have!) to show them the fruits
of their labors…how their buys are getting
translated into the stores. It’s very
comprehensive to show how trends go
26 ACCESSORIES
cross-category. For Garden Party, how it’s
not just a botanical print dress, but floral
necklaces, floral patterned shoes and more.”
BLOGGER SUMMIT: This year, Belk is
hosting its first-ever blogger summit, having
invited 17 bloggers from the store’s southern
footprint to attend Charleston Fashion Week
and meet Trina Turk who is showing on
behalf of Belk. “They will have an intimate
dinner with Trina, then end the weekend with
a Belk executive roundtable,” says
Goldstein. “The idea came from Belk’s instore Girls Night Out, which is a big cocktail
party every season. We had partnered before
with bloggers and influencers in Dallas to
gather a crowd, so we decided to do a
formal summit as an exchange of ideas.”
FUNDRAISING EVENTS: Belk also partners
with lots of local non-profits, hosting events
about five or six times a year. “We do a lot of
events with the Junior League to raise
money for various causes,” says Goldstein.
“We did a fashion runway shopping event for
the Junior League and did the finale with
Lilly Pulitzer, who is a very important
designer for us. After the show, one of the
head designers greeted people and I’ve
never seen anything like it. People went
crazy! We also had Trina Turk come another
year—another favorite!”
FASHION SHOWS: In addition to runway
shows at Charleston Fashion Week, Belk
also holds internal shows for its team to
showcase fashion direction.
“At one of our corporate meetings, I did a
back-to-campus show and I used employees
as models. One guy looked just like Pharrell
Williams so I got the idea to get that hat and
plug that as a hat statement. It took some
convincing but I got him to be in the show
and we found a similar hat online as we
didn’t carry it in store. I MC’d and said, “All
the way from Hollywood, you won’t believe
who’s here…” and people went crazy! It was
a really fun event.”
T
exan tongues were talkin’ when
Belk announced two years ago that
it would replace the Galleria Dallas’
outgoing Saks Fifth Avenue with a
new flagship. While Belk already
had 14 stores in Texas, none were
in Dallas catering to the discerning Galleria
clientele. With smaller stores around Texas, Belk
was better known locally for its mid-priced
fashion and accessories than the big-name
designers that Dallas women had come to know
from Saks’ 30-year reign.
Any doubts about Belk filling those highstepping fashion shoes were quieted as the
retailer teamed up with the Galleria for a joint
$20 million investment to overhaul the threestory, 170,000-square-foot anchor. First up: a
new entrance featuring a 68-foot blue glass tile
mosaic that matched Belk’s blue logo.
“Belk’s Western Division and particularly
Texas has been a growth area for us,” says Tim
Belk. “Our Texas stores have performed very
well, due to the economy and strength of this
market. We’ve had a presence in the Dallas
market for over 10 years, but through smaller
stores in outlying areas. We’d had been looking
for a flagship location for about five years.”
Blue ribbons float
into the sky at the
Galleria Dallas
opening’s ribbon
cutting ceremony
RAISE the
FLAGSHIP
A FIRST-EVER FLAGSHIP IN DALLAS ADDS A NEW FEATHER IN BELK’S TEXAN CAP
Unlike some retailers that have one flagship
or two, Belk currently has 21. And a significant
part of Belk’s investment strategy goes toward
opening new flagships (i.e., Galleria Dallas and
Bridge Street Town Center in Huntsville, Ala.)
and expanding and/or remodeling others (i.e.
Friendly Center in Greensboro, N.C. and Mount
Pleasant Town Centre in Mt. Pleasant, S.C.) This
strategy serves to show off Belk’s best brands
and design, and elevate the company overall.
At the Galleria location, Belk immediately
created in-store designer boutiques, exclusives
and elegant displays. On the second floor, a
customer lounge offers conveniences like iPads,
a phone charging station and digital screens.
Right before its April 2014 opening, Belk held
an event for Susan G. Komen’s Passionately
Pink for the Cure, an organization with which
Belk is intimately involved. Attendees received a
$25 Belk gift card and got to see events on each
level, including performances by winners of
Belk’s Modern Southern Music competition.
At Belk’s fashion show, Arlene Goldstein
interviewed Nashville TV star and Belk Brand
Ambassador Hayden Panettiere on stage. The
fashion show highlighted the season’s looks and
closed with the Dallas Cowboys Cheerleaders.
28 ACCESSORIES
ACCENTon
ACCESSORIES
With the branded boutique business growing, accessories are the shining stars
Kate Spade is a Southern
favorite for her bold
approach to color.
O
ne of the things we always ask at Belk is, ‘How big
is big?’” says David Neri, EVP and GMM of Center
Core. “We get very quick reads and can move very
fast. Part of that is because we’re a private
company, and part is just our corporate culture.
We’re not shy, slow or bashful. If we feel strongly
about something we will see how big we can make it.”
This sentiment ties into Belk’s approach to its Center Core, which
has undergone a significant multimillion dollar renovation, all kicked
off by the footwear revamp. “In the past six years, we have
remodeled, moved and expanded over 180 shoe departments. Many
have been moved to different locations within the first floor. Two
years into the footwear expansion, we thought, ‘Ok, the store is your
home and center core is the foyer,’ so we looked at accessories and
then expanded the that space as well. But it was more than just
putting in designer handbag shops. We did have handbag boutiques
before we realized we needed more space. We looked at our jewelry
cases, at everything, so it was natural to move the entire
accessories space up.”
The initiative has paid off, with the accessories classification
growing in performance and penetration. Currently, accessories
represent 10% of the store, which has grown in the past two years.
One major impact to Center Core is the whole athletic movement,
which is impacting not just literal athleticwear but athletic-influenced
styling as well. “Right now it’s all about activewear in Center Core,”
says Neri. “Athletic socks, athletic shoes… what we’re calling ‘sport
30 ACCESSORIES
Michael Kors a key
brand in designer
handbags
chic’ footwear, which is different from true
running shoes. Sport chic is in addition to
the active footwear category.”
Private brands are also key, representing
30% of Belk’s total accessories business,
with a few major private brands—Kim
Rogers and New Directions. Both operate
mainly as an opening pricepoint for the
store, with lots of “fashion at a price”
offerings. “Both brands are very successful
and reach a large age group,” says Neri.
“We’ve increased our penetration of private
brands, more in accessories than compared
to footwear.”
In accessories overall, focus has gone
more upscale. “No doubt about it, the
better/designer businesses outpaced the
growth of the area and the growth in total
Belk,” says Kathy Thomas, DMM of
Accessories. “This was driven by the
success in Michael Kors handbags and
watches but also in other designer brands in
handbags, watches and jewelry.
Color is key. “Our customer loves color,
especially in spring and summer. Our color
penetration is very high, higher than our
competition's.”
Here, a walk through the departments:
Pearls are a
perennial at Belk.
Here, from Carolee.
HANDBAGS: Designer/better handbags are
a huge part of the Belk business model, and
have been steadily increasing. Michael Kors
is leading the pack and Belk added over
100 new Kors shops in the past two years.
We would like to extend our warmest
Congratulations to Tim Belk
and the entire Accessories Buying Team and Fashion Department.
It has been a true honor to have had the pleasure
of working with such an inspiring group of people.
32 ACCESSORIES
November 2011/Accessories 32
“We have made capital investments to
improve the in-store experience in designer
handbags and this has paid off,” says
Thomas. “We have been raising our AUR
year after year, which shows that our
customers enjoy shopping our better
brands,” says Thomas. “Kate Spade is
experiencing really nice increases; they
match our customer profile because they are
very feminine. We are investing in new shops
for these brands too.”
Belk has also introduced some new
brands into its stores this year, including
London Fog, Marc by Marc, Tommy Hilfiger
and Isaac Mizrahi.
“Dooney & Bourke and Brahmin are
classic brands that our customers continue
to want, and Anne Klein and Jessica
Simpson also did well for us,” says Thomas.
Colored
dials accent
Michael
Kors
watches.
WATCHES: Belk continues to still see nice
growth in watches. “Michael Kors continues
to be a big driver of the business but we are
seeing nice growth in some of our other
brands, such as Fossil, Anne Klein, Casio,
Kate Spade and Diesel. Some of our Swiss
brands are doing well too, such as
Movado.” In styling, colored dials and two
tones are hot. “Our vendors tell us that we
penetrate higher in gold watches and that our
customer loves bling!”
JEWELRY: Fashion jewelry business has
been more challenging this year, but there
have been highlights. “Our boxed jewelry
business is strong, as gift giving is a
growing category for us,” says Thomas.
Departments feature both designer (i.e.,
Anne Klein, Ralph Lauren, Carolee, Michael
Kors and Vince Camuto) and modern (i.e.,
Lucky, Nine West, Nine West Vintage
America Collection, Jessica Simpson and
Anything to do with
family, friends or faith
also sells extremely well”
BCBGeneration.) Private brands include Kim
Rogers, ND New Directions and Red Camel.
To grow the department, Belk is moving
towards more key items and key
classifications. “The jewelry department
does turn fast and is a high margin area. We
can react to good sellers much faster here;
we are always putting together reorders on
Mondays—that’s the fun part of the job.”
Boxed goods are a big percent of the
business in costume and modern jewelry.
+VYMTHU7HJPÄJ®
Congratulates
For being honored as
Retailer of the Year.
Tim Belk, David Zant, David Neri, Kathy Thomas, Jon Pollack, Mike Hart, Sheila Koppert,
Beth Crosby, Luann Foster and the entire Belk Accessories Buying Team and Fashion Department
óóó͘ÊÙ¥ÃÄͲÖ®¥®͘ÊÃ
34 ACCESSORIES
Metals are doing well and Thomas sees the
trend continuing. After so many seasons of
statement necklaces, ears have become a
new focal point. “Statement earrings are
going to be the Must Have for Spring.”
In bridge, most jewelry is sold under the
private label Belk Silverworks brand and the
department is doing really well. “We
Our color penetration
is very high, higher than
our competition’s.”
Colorful
mirrored
aviators from
Jessica
Simpson.
introduced a new classification this year,
Charming Lockets, which has completely
turned around the business and we see this
continuing to grow. We’re selling the lockets
and the charms that go with the program,”
says Thomas, noting the clear lockets that
show off floating charms within.
Originality Beads is Belk’s answer to the
add-a-bead craze, featuring birthstones,
critters, crystal, faith and family, initials,
novelty and more. “Anything to do with
Bulova Corporation
Congratulates
Tim Belk, David Zant, David Neri,
Kathy Thomas, Jon Pollack,
and the entire
Accessories Buying Team
& Fashion Department,
who have helped make
BELK
The Accessories Magazine
2015 Retailer of the Year.
Bulova is extremely proud
of our successful relationship.
36 ACCESSORIES
family, friends or faith also sells extremely
well,” says Thomas. As fashion jewelry tilts
into look-of-real styling, there is more
blurring among the departments. “It’s
always a fine balance among fashion, bridge
and of course fine jewelry,” says Thomas.
FASHION ACCESSORIES: Despite Belk’s
Southern footprint, it has a true coldweather
season and it’s been a good one lately. “We
do get some cold weather down here but not
extreme,” says Thomas. “We typically focus
on lighter weight coldweather accessories.
Ruanas do great for us as they are our fall
outerwear down here. We shipped them
earlier than usual this year and that worked
really well. “A new category that has been
good for us out of the gate is Kimonos and
Toppers. They are on our Must Have list.”
There aren’t as many designer brands in
fashion accessories, as in say, handbags,
but Belk does have some strong modern
brands, as well as a good balance of private
label. The neckwear classification has been
good, driven by a larger penetration of loops.
“Hair accessories are not carried by Belk
at this time, however the store is seeing
opportunities for growth in new categories
and classifications,” adds Thomas.
LEGWEAR: Unlike many department stores
that have moved legwear off the main floor,
Belk has taken a different position. Women
are a bit more polished in the South, and
David Neri, EVP GMM Center Core:
David Neri is the Executive Vice President and General
Merchandise Manager of Cosmetics, Shoes, Accessories and
Fine Jewelry at Belk, Inc. David began his retail career in 1975
in St. Louis. He held SVP merchandise positions at Liberty
House of Honolulu, as well as vice president roles in St. Louis at
Brown Shoe Company. Prior to joining Belk, he served as the
Executive Vice President GMM of Shoes, Accessories, Intimate
Apparel and Home at Parisian’s in Birmingham, Ala.
Kathy Thomas: DMM Accessories & Fine Jewelry
In retail her whole career, Thomas started out at Kmart, working
in the stores then getting promoted into corporate. She worked
in virtually every division except RTW—as an allocator, an
assistant buyer, buyer, then DMM. She then worked at Sears
Holdings for five years, spending the last year in e-commerce.
She came to Belk as VP of Planning for Kids and was then
promoted to VP/DMM of Accessories in 2012. Newest
additional responsibility is fine jewelry.
legwear and hosiery remains a strong piece
of the accessories puzzle, with most of it in
the Accessories department and some in
Intimates. Sheers remain a big classification,
but mostly replenishment, not a major driver.
When it comes to newness and fashion,
leggings are experiencing great increases,
driving the business, says Thomas. Casual
lounge pants and “relaxed leggings” have
also increased, allowing women to relax in
comfort without a skin-tight legging look.
Keeping with the Southern woman’s love of
color, brights and prints add punch and
newness to this category, offering pop. HUE
remains a key vendor.
“Spanx business is very strong at Belk,
and we are proud to have it in our stores,”
says Neri, alluding to Spanx’ Southern roots
[the company is based in Atlanta].
“Socks are very strong, and she’s wearing
fashion socks with her dresses, shoes and
sandals,” adds Neri. “Athletic socks, like
those from Nike or Under Armour, are big
drivers. Right now it’s about activewear.”
From your watch partners at
CONGRATULATIONS!
2015 RETAILER OF THE YEAR
38 ACCESSORIES
Magid congratulates Belk
as the Accessories Magazine
2015 Retailer of the Year.
We would also like to extend our congratulations to
Tim Belk, Chairman & CEO
David Zant, President & CMO
David Neri, EVP/GMM Center Core
Kathy Thomas, VP/DMM Accessories & Fine Jewelry
Jon Pollack, EVP Sales Promotion, Marketing & E-Commerce
as well as Handbag Buyer Beth Crosby
and the entire Accessories Buying Team & Fashion Department.
320 Fifth Avenue, 7th Floor, New York, NY 10001
212.268.1071
DIGITAL
ADVANTAGE
A digital push helps Belk extend its borders far beyond the South
Jon Pollack is Executive Vice President of Sales Promotion, Marketing and E-Commerce for Belk, Inc.
He began his retail career in 1977 and joined Belk in 1985 as DMM for Cosmetics and Hosiery. In
2002, he was appointed EVP and GMM, Center Core, which included responsibility for cosmetics,
accessories, intimate apparel, hosiery, children’s and fine jewelry. He became EVP of Sales
Promotion, Marketing and Cosmetics in February 2009 and was named to his current post on
November 30, 2009. Prior, Pollack held buying and store management positions with Polsky’s, the
May Company and Rich’s. The Sydney, Australia native is a graduate of the University of Georgia in
Athens, with a Bachelor of Arts degree in political science.
B
elk’s $300 million online
business, which grew 46% in
Q3 and is outpacing other
areas of the company, is about
to get even better. The
company has embarked on an
ambitious multimillion dollar overhaul of its
website and e-commerce experience.
While Belk is deeply rooted and
committed to the Southern states, a major
digital and omnichannel initiative is allowing
it to connect seamlessly with customers,
regardless of where they are. E-commerce
has been essential to give Belk the national
exposure to “extend” its borders.
And it’s paid off. Already, 20% of online
traffic comes from outside Belk’s 16-state
geographic footprint.
As part of the initiative to move to a new
platform, the website will look and feel
different in the next 24 months, as well as
function better.
“The whole idea of improving the
shopping experience is never ending,” says
Jon Pollack, EVP of Sales Promotion,
Marketing and E-Commerce. “We’re always
working to make it better.” The new platform
offers more flexibility and a better shopping
and user experience. “It will also serve as a
new point-of-sale model so the in-store
experience is more seamless,” says Pollack.
“We’re trying to bring that digital experience
in store, so there’s an easier way to find
things and finish outfits.”
For 2014, e-commerce business did close
to $300 million, which is growing at a faster
rate than the stores. “It’s a symbiotic
relationship,” says Pollack. “Online and
brick-and-mortar need each other, as 60%
to 70% of our online browsing behavior
turns into an in-store purchase. The
customer is doing her research then making
40 ACCESSORIES
Digital helps Belk export its color aesthetic
and private label brands. Above, Vera Bradley
designer bags. Below, Crown & Ivy private
label scarves.
a trip to the store to figure out what she
wants. Demographically, Belk’s online
customer trends younger and more affluent,
whereas in the stores it’s more
multigenerational.”
But while Belk might have a typically
Southern aesthetic, the online offerings—
presented to a national consumer—are right
in step. In fact, the online and in-store
buying team is one and the same.
“We utilize the same buying staff online
and in store and we don’t differentiate where
the customer is living,” says Pollack. “We
portray the Southern lifestyle, not
necessarily the Southern location. It’s more
about that relaxed, put-together look.”
Merchandise is the same online but with
expanded assortments, sizes and color by
sku. Color is key, both in-store and online.
“We have color year round and she doesn’t
get that elsewhere. Of course we have black
too, we just don’t lead with it!”
Belk’s Yes We Have It! program is another
system set up to facilitate what she needs.
“If a customer can’t find something in the
store, the sales team will see if they can find
it in another location, then ship it free of
charge. It’s not her fault we didn’t have it in
the store when she wanted it.”
In addition to free shipping (at certain
dollar thresholds), Belk.com also makes
merchandise suggestions to add to the
experience. “For example, if you’re buying a
cosmetic item, it will suggest other parts of
the regimen. If you’re shopping for apparel,
the algorithm will suggest shoes and
accessories.” Not surprisingly, the average
market basket is higher online than in store.
Belk also has a robust social media
operation, with 1.57 million Facebook fans
and high activity on Twitter and Instagram.
“We also have lots of bloggers that blog to
us and us to them,” says Pollack.
Another way Belk engages customers is
with heavy sweepstakes programs. “For
Holiday, we did a Santa Baby sweepstakes
where customers created their own e-cards,
no purchase necessary. We had 200,000
customers opt in to provide their emails off
of that sweepstakes and over 40,000 opted
in with their mobile number. We are so
thrilled with the online engagement.”
CONGRATULATIONS
BELK
Honoring:
Congratulations
to everyone at BELK
on the
RETAILER OF THE YEAR AWARD
cheers from
Accessories Buying Team & Fashion Department
Congratulations
2015 Retailer Of The Year
www.fgxi.com
theROAD
SOUTH
Belk’s new campaigns and competitions spotlight Southern talent
T
he South is having a major
moment now—just look at
population growth in cities like
Charlotte or Raleigh, which
top the U.N.’s list of the
fastest-growing large U.S.
cities. Throw in tourism hotspots like
Charleston (with its fabulous Michelinstarred farm-to-table restaurants), Austin
(with its edgy music scene) and the South’s
temperate climate and natural beauty and it
becomes clear why people are migrating
there in ever-increasing numbers.
“The South is the center of influence now
and we’re really enjoying that. It used to be
New York, then California, and now there is
so much attention turned down here,” says
Jon Pollack, EVP Sales, Marketing and ECommerce. “We’re not just jumping on the
bandwagon: we’re a family owned and
operated Southern store with 125 years of
heritage and we know the region better than
anyone When it comes to the South, we’re
not kidding!”
Belk’s The Road South campaign has two
major initiatives to discover and celebrate
Southern artists, plus bring their acclaim to
a broader market:
4065)&3/.64*$*"/4)08$"4& As
part of its 2015 The Road South campaign,
Belk announced its second Southern
"$$&4403*&4
Musician Showcase, which offers Southern
musicians a chance to win cash and
perform at major fashion, sports and music
events, get a performance wardrobe and
stylist provided by Belk and an opportunity
for their songs to be featured in Belk
television commercials.
“Music is fundamental to the Southern
lifestyle, and has an incredible influence on
fashion,” says Pollack, who admits to
personally listening to all 4,000 music
submissions. The Southern Musician
Showcase is open to solo artists and bands
in the Americana, Pop Country, Pop, Blues
and Bluegrass genres. A team of music
industry professionals, celebrity musicians
and Belk executives selected the 40 semifinalists (the finalists will perform at various
events around the Southeast).
4065)&3/%&4*(/&34)08$"4& The
window for 2015 submissions just closed for
Belk’s second annual Southern Designer
Showcase, which sets out to discover new
talent in the Belk area. Along with a cash
prize, winners of the 2015 Southern
Designer Showcase will have their
collections sold in select Belk stores and on
belk.com in Spring 2016. Winning
collections, announced on May 14, 2015,
may also be featured in upcoming
advertising campaigns.
| MARCH 2015 | '*/%.03&"5"$$&4403*&4."(";*/&$0.
“We can hardly wait to see what this
year’s competition applicants have to offer,”
says David Zant, Belk’s President and Chief
Merchandising Officer. “These designers
truly help us define what is modern,
southern, style and we are excited to build
new relationships with our 2015 winners.”
Winners go into the parent department
with signage that they are a Southern
Designer Showcase winner.
Depending on reception, after a season
or so, they can be adopted into the store as
a regular vendor. Pricepoints tend to be
moderate to better.
“The idea isn’t just to bring in new
brands, but to help get them started and to
help nurture them as well. Many of these
upstart designers don’t have connections of
how they can best source and get the best
prices,” says Zant. “We can help them be
much more competitive and give them a
certain amount of exposure in our stores.”
And don’t forget football, which is a major way
of life in the South. To celebrate sports talent
in this region, the annual Belk Bowl college
football game currently is a matchup
between the Atlantic Coast Conference
(ACC) and the Southeastern Conference
(SEC). Miranda Lambert even did a live, free
concert at the Belk Bowl, pulling music and
athletics together in true Southern fashion.
PROJECT
RUNWAY
A recent reality TV sponsorship helped put Belk on the national stage
Y
CONGRATULATIONS
BELK
Honoring:
Accessories Buying Team & Fashion Department
44 ACCESSORIES
ou all know to use the Belk Accessory
Wall very thoughtfully!”
Anyone who has watched Project
Runway will easily read that line with
Tim Gunn’s deep, resonating voice in
their head, hearing the mentor remind
contestants to accessorize their apparel designs on the
runway.
To expand beyond its Southern footprint and gain
national exposure, Belk recently partnered with the
popular fashion design reality show for Season 12,
putting its fashion positioning—and its accessories—on a
national stage.
Project Runway, which airs on
the Lifetime Network, has about
2 million viewers, was a great outlet
for Belk to promote its 125-year
Southern history as well as its
multi-million dollar rebranding
effort, new logo, and Modern.
Southern. Style tagline. Cue Tim
Gunn saying “Belk epitomizes the
modern, southern woman...”
As part of the sponsorship, Belk
Fashion Director Arlene Goldstein
and her buying teams pulled
together hundreds of accessories
items covering all classifications.
The wall was swapped out for new items every few
episodes, making sure the pieces would coordinate with
each respective design challenge. Designers weren’t just
judged on the clothing they made in the workroom, but
on their styling choices as well, shining the spotlight on
Belk accessories even further. The Project Runway
collaboration put Belk in the same league as previous
sponsors, from Lord & Taylor and Macy’s to Bluefly.
To support the partnership, Belk set up a
belk.com/projectrunway site, featuring behind-the-scenes
clips every day after the show, giving consumers the
opportunity to shop items from the episode.
In addition to the Belk Accessory Wall, there was also
a Belk Challenge to design for the modern, Southern
woman, which was guest judged by Belk Executive Vice
President of Private Brands John Thomas. Designer Dom
Streater (who ironically hailed from Philadelphia), proved
she understood the modern Southern woman best and
walked away with the win.
“Customer response was very positive,” says EVP
Sales, Marketing and E-Commerce Jon Pollack. “Our
efforts since the partnership have transitioned to promote
the pieces we currently carry from Dom Streater.”
CITIZEN WATCH COMPANY
is proud to congratulate our friends
Tim Belk
Chairman & CEO
David Zant
President & CMO
David Neri
EVP/GMM Center Core
Kathy Thomas
VP/DMM Accessories & Fine Jewelry
Jon Pollack
EVP Sales Promotion, Marketing & E-Commerce
The entire Belk Accessories Buying Team
and Fashion Department
on being

Here - Accessories Magazine

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