Belk uses rebranding to woo customers

That's just the kind of endorsement executives at Belk Inc. are hoping to hear more of after launching a rebranding campaign last month.

The Charlotte-based department store, now approaching its 125th anniversary, is the largest privately owned department store in the country. The new branding campaign, which includes a new logo, new tagline and $200 million in store updates (a large portion of which will go to metro Atlanta stores), is the first time the brand has had a touch-up since 1967.

"Rebranding the company is not just the logo, but advertising to define or redefine the company," said Dave Penrod, chairman of Belk's Southern Division.

The new tagline -- "Modern. Southern. Style." -- emphasizes the company's Southern roots, he said, but also lets shoppers know they have modern offerings as well. "We think that resonates anywhere," Penrod said.

Department stores in general are looking for ways to reach a more targeted customer. Macy's began localizing merchandise in metro area stores last year. J.C. Penney tried a similar tactic in the mid-'90s to mixed results, said Daniel Butler, vice president of operations for the National Retail Federation. Kohl's, which has gained a strong following in Georgia since its 2001 arrival, has been successful defining itself as a specialty department store.

Belk operates more than 300 stores in 16 Southern states. Last year, sales reached $3.5 billion, but overall, market share has shifted away from department stores, Butler said. Forced to compete with specialty stores, which began gaining popularity several decades ago, many departments stores have often found themselves on the other side of hip.

"Department stores can do very well for several decades in a row, but they always have to appeal to the younger consumer," Butler said. Updating a logo and rebranding are part of creating that appeal. "In retail, newness drives sales and drives the business," he said.

So along with a new logo, a graphic burst of blue, Belk has allocated $200 million to upgrade the consumer's shopping experience. That translates into knocking down walls to open up dark and dated-looking sales floors or replacing traditional cases with self-service displays. The company will also put a considerable push behind Belk.com, the eCommerce site introduced two years ago.

At the Phipps Plaza location, one of four Belk flagship stores in the region, display cases between the escalators were removed to create a prominent open display of Erica Lyons jewelry, a brand exclusive to Belk that features traditional and trendy styles. The company also upgraded its branded women's apparel, adding a weekend version to its New Directions line. The spinoff arrives in stores later this fall, but already the racks are filled with trendier looks such as a military jacket with brass buttons, dark-wash denim jeans, a faux-leather motorcycle jacket and T-shirts with rosette trim, all under $100.

However, at Phipps, the designer lines are in demand. Trina Turk, BCBG, Joe's Jeans and more are carried only at the Buckhead store. Other Belk stores at the Forum at Peachtree, Mall of Georgia or Town Center at Cobb, for example, are more centered on branded merchandise.

"The assortment in the stores reflects the customer in that market," said Penrod, noting that the larger Belk stores in each market stock the designer brands. But convincing shoppers that Belk stores other than Phipps offer the same "Modern. Southern. Style." could be a challenge.

Malissa Williams, 37, of Brookhaven visited the Belk store at Lakeland Plaza in Cumming and decided she would stick with Phipps when shopping for her jeans and tops. The other Belk stores, she said, are like "Macy's or lower."

Penrod said the Belk brand is bigger than the merchandise in any one store. It's also about service to the customer and the community -- including a yearly fundraising effort that has brought $750,000 to local charities -- which when taken altogether communicates exactly what the new tagline is all about.

"We are not just here to sell you style," Penrod said. "It's about being a great member of the community."