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2008-11-27 tracking BUSINESS POST section
Belk custom fits stores to market
by Bob Pepalis

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November 30, 2008
When Belk opened in North Point Mall a year ago, it had big plans, but company officials don't believe its customers got the message.

Karen Greager, Atlanta marekt regional vice president for the privately-owned department store company, said before Belk took over Parsian stores, it was not in North Fulton.

Now the nation's largest privately-owned department store company has 21 stores after converting five Parisian stores, including those in Duluth and at Alpharetta's North Point Mall.

"The customer base here does not necessarily know Belk, because we were not in this market," Greager said.

The store opened in October 2007 with a lot of hoopla, she said. But its expanded product lineup in the store may have crowded out customers from seeing just what it offers.

Customers don't realize that every Belk store is different. The Belk stores in Cumming or Conyers cater more to customers looking for value, while North Point customers likely want more upscale clothing and other products. Phipps Plaza has even more unique product lines for the upscale customer than even the North Point Mall store. These two stores are numbers one and two for the company in this market, and Greager said the Atlanta market is Belk's strongest area.

"We are trying to educate the customer on who we are. We are a better department store," she said.

Brands range from moderate "store brands" to high-end designs, such as the Juicy Couture and Brigthon lines.

As those lines suggest, Belk offers trendier and edgy designers and classic lines, to cater to more customers.

"We are able to cater to both of those through the high end brands," Greager said.

Contemporary lines include Christina Vale, in men's Tommy Bahama is a bit edgier. But the Polo line retains the classic look.

"We have a great private brand line, Golf Pro Tour," she said. D.J. Trahan, a golfer on the pro tour is its spokesperson.

karen: our target custom can be classic

Belk is a third-generation, family owned busienss, run by three Belk brothers.

"We are very family oriented. We support a lot of outreach community efforts in the Belk culture," Greager said.

The Junior Leagues in the metro Atlanta area are among those community organizations supported.

Greager, who has been in retail for 28 years, said she hadn't experienced that level of involvement at any of her other jobs.

"We care about the community – we care about North Fulton," she said.

Belk again is presenting sponsor for the Nutcracker this year, and is very involved in the Atlanta Ballet. A Nutcracker event will be held at the Alpharetta store Saturday, Nov. 22, most likely in the morning.

No. 2 in Alpharetta

"When you look at the Atlanta market for Belk, 21 stores strong, Phipps is our flagship, and this store is right there. Number one is Phipps, number two is this store," she said from the store manager's office at the North Point Mall store.

Expect service and community outreach in Alharetta, she said.

"It's really trying to tailor the stores to teh specific market you are serving," said Ryan King of Hope-Beckham, the store's marketing firm.

One of the few differences between the store, other than some other upscale products, is the personal shopper position that is a full-time job at Phipps. The North Point Mall store instructs its sales staff to offer that level of customer service, but it does not have an individual in that job.

Online store

Can't find what you want? Check out Belk.com, which Greager said was just relaunched as a very interactive Web site, with catalog. Like the Alpharetta store, it has undergone big changes recently.

"We also have our bridal registry on there. We totally rebuilt it, retooled it," she said.

And Greager said a customer coming to any Belk store who can't find a particular item sold by Belk at that store can take advantage of an in-house system that allows staff to check the inventor in all stores. If another store has the item, it can be pulled from taht store and provided to the customer.

Belk and the economy

"I don't think there's a business untouched by the economy, what's going on with the economy, the housing market. So yes, we are feeling it," Greager said.

"We are doing what we can to react to it by offering our customers increased value so that we reocgnize their needs," she said.

Store inventory is being closely monitored to make sure Belk does not overstock its stores. That's nothing out of the norm for any retailer.

"It's a challenging time for everybody, and everybody is affected by it," she said.

The economy may have some customers looking for great value, sending them to discount department stores such as Super Target or Wal-mart. While Belk is working hard to make sure shoppers know it has upscale clothing and home accessories lines, it also uses promotions such as Belk Days to bring the value shopper to its stores. At these sales, the first 100 customers at store opening received $10 gift cards.

"When we do that, that's offering our community a gift, but it also helps support people that are looking for a value," Greager said.

Belk has customers shopping at the high end, and those looking for value.

"I think everybody honestly is looking for value," Greager said.

Coupons, shopping passes, bonus buys and special buys for limited times and events also point the way to those shopping deals, she said.

The first 200 customers at the store Oct. 15 received a gift, and those were gone within four minutes, King said.

Girls' Night Out brings a wine and cheese "parties," fashion shows and prizes to educate the customers about Belk, Greager said.

More room to shop

While Greager and the North Point Mall staff didn't necessarily plan it that way, the store already had been reducing inventory just to make shopping easier.

"We have really opend it up, so the customer can walk the aisles in comfort," she said.

When the store first opened, aisles were so narrow it was tough to get a stroller down them, while now two strollers can pass each other in the main aisles with room to spare. That also allows shoppers to see what products are in the store.

Future in Cumming & Gwinnett

The Cumming, Gwinnett Place and Norcross Belk stores are very successful, Greager said.

"Those stores will continue to grow, because they are serving a need in the market. They are freestanding locations that work extremely well," she said.

At the Cumming and Norcross stores, shoppers now can find the Kristen Davis line. Davis, one of the "Sex in the City" actresses, is just like she appears on TV, Greager said. She met the actress at the Charlotte launch of her clothing line.

A broad assortment of shoes also can be found at those locations.

Belk continues to focus on its locations individually in a two-pronged approach, tailoring its product lines to the needs of the customers at each store.

"The plan is to keep both balls in the air," Greager said.

Holiday shoppers?

"It's going to be a challenging fourth quarter, based on what is going on with the economic situation. I can't quote any numbers," Greager said. "We are looking at it conservatively, a prudent way to do it."

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