Belk department store tries out a new type of space for shoppers
The iconic Charlotte-based Belk department store has unveiled another new retail format.
Belk Market debuted last month at The Centre at Preston Ridge in Frisco, Texas, followed by The Grove at Wesley Chapel in Wesley Chapel, Florida.
The smaller-format stores combine traditional Belk apparel with national and private labels specific to those stores, according to a company news release.
Belk Market sells an assortment of brands in men’s, women’s and children’s apparel, as well as shoes, handbags, accessories, home décor and fine jewelry, with frequent merchandise rotation.
Belk introduced the new store concept “looking for new ways to match shoppers’ needs” with an easy-to-shop layout, Belk CEO Don Hendricks said in last month’s store announcement.
The Wesley Chapel store is a 30,000-square-foot space, said Matheus Gold, executive vice president of management for property manager Mishorim Real Estate Investments.
The more than 470,000-square-foot mixed-use center combines national retailers, specialty shops, and dining, and entertainment drawing over 7 million visitors each year, according to Wesley Chapel’s website. Belk Market’s neighbors includes one of the largest Target store in the U.S., as well as Best Buy, TJ Maxx, Ross, Michael’s, Ulta and Planet Fitness.
“It’s a change of pace for what they’re used to doing,” Gold said. “It’s very similar to that old-school feel of going to a Belk store from your childhood to this more modern, up-to-date concept that works really well with today’s shoppers.”
Belk officials did not respond to repeated requests for comments. Officials with The Centre at Preston Ridge did not immediately respond for comment Thursday.
Belk’s outlet stores
This is not the first time the 138-year-old retail chain shifted its focus.
Three years ago, Belk opened its first outlet store in Greeneville, Tennessee. Belk Outlet sells clearance items from larger Belk stores and high-end brands that were previously unavailable at stores.
There are now 17 outlet stores in 12 states, including at Northlake Mall in north Charlotte and Eastridge Mall in Gastonia.
Belk corporate changes
Belk signed a 15-year lease in 2016, just months after three generations of the Belk family sold the department store chain to private equity firm Sycamore Partners for $3 billion in December 2015.
In 2021, Belk said it would sublease its Charlotte headquarters at 2801 W. Tyvola Road and shift the majority of corporate employees to teleworking and from offices at stores. As of February 2021, Belk had about 1,200 corporate office employees.
Last February, Belk said it was calling its corporate employees back to the Charlotte office three days a week after going completely remote since the start of the pandemic.
Belk’s struggles amid bankruptcy, debts
When the pandemic hit in 2020, the department store was facing a $2 billion debt load and declining store sales. Belk filed for and emerged from Chapter 11 bankruptcy in February 2021. The bankruptcy plan was approved within 24 hours, cutting its debt load by about $450 million.
Belk also saw multiple leadership changes, including a lawsuit. Lisa Harper, who had been Belk CEO since 2016 and was the company’s first CEO outside of the Belk family, was replaced July 2021 by longtime Belk executive Nir Patel.
But less than a year in the role, he left and Hendricks replaced him. Belk sued Patel, another former executive and GameStop over alleged “deceptive trade practices.” Patel, who left Belk unexpectedly after less than a year as CEO, was accused of stealing employees and payroll information. In 2022, Belk filed a voluntary motion to dismiss the case with prejudice; terms of the settlement were not disclosed.
In July 2024, Belk unloaded more than $950 million in debt and gave some lenders more controlling interests in the company. The financial restructuring also included securing $485 million in new financing as part of its strategy to strengthen its financial standing.
The company has 17,000 employees and nearly 300 department stores in 16 Southeast states.
