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Belk closing North Point store
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ALPHARETTA –Despite the metro Atlanta region being Belk's largest market, it's North Point Mall store is under performing and will close by Labor Day.
Dave Penrod, chairman of Belk's southern division, said Belk is not pulling back from this market. The closure was a strategic move. When the North Point Mall store opened, it was part of the company's Parisian purchase.
"We'll start the going out of business sale on June 24. We'll end up closing the building around Labor Day," he said.
Belk will run that sale through its own offices.
Belk moved the store from the 85,000 square feet of the former Parisian store in the mall over to the 132,000 square feet of the former Lord and Taylor store, which had been vacant for several years.
"I don't think it was as advantageous a location as some other department stores in the mall. It really is more about the economic impact of the recession more than anything," Penrod said. "The North Point store just fell into a difficult economy. This store in particular didn't perform really well," he said.
The rest of the chain's area stores are meeting expectations, a contrast with the Alpharetta store. Nearby stores include Cumming, Duluth, Canton, Norcross and Buford.
The Alpharetta store wasn't making any of its financial expectations, leaving Belk with no alternative other than to close it based on that performance.
"It certainly is a very competitive mall with other big department stores" and a very good line of other retailers, Penrod said.
The weak economy "certainly would play into everyone's business in that in this kind of economy, everybody's share of the wallet has become smaller," he said.
A consumer trend in the economy is to trade down, which Penrod said typically is more advantageous for Belk as most of its stores have moderately priced goods. A few of its stores, such as the flagship store at Phipps Plaza, are high-end.
This market is still largest market of stores for Belk, Penrod said, with 21 stores.
"The overall investment that Belk has made here in the last two years is north of $32.5 million dollars, including two recent stores opening in March," he said.
Stores in the Winder and Newnan areas were the most recent to open.
Penrod said Belk will try to relocate the associates in the other stores in the area where it makes sense.
"We take that as our highest priority," he said.
They are meeting with each associate one-on-one with an expectation of placing everyone.
Penrod is moving his office – and the entire southern division headquarters – from Jacksonville, Fla., to Georgia. His office will be at the Mall of Georgia store.
The southern division has oversight for 100 Belk stores in Georgia, Alabama, Florida and South Carolina.
Belk continues its commitment to the community, Penrod said. For the last two years, the Belk Foundation has contributed more than $300,000. It will announce two other significant contributions this week. The company also sponsors the Nutcracker Ballet.
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