Belk has converted its Palm Coast location on Cypress Edge Drive into an off-price outlet store and will host a grand opening on June 3. The outlet has been opened as such since May 16. The retailer itself has been struggling.
The Palm Coast Belk is one of 16 that the Charlotte, N.C.-based retailer has launched (or re-launched0 as outlet stores since the beginning of the year, when it announced the new concept with a store in Greenville, Tenn.
“Belk Outlets include discounted items that come directly from larger Belk stores, meaning customers will have access to a wide range of items, including high-end and designer brands that these locations may not have carried in the past,” a company release states.
Belk has about 290 stores, mostly in the Southeast. It filed for bankruptcy dring the pandemic, emerging from it in 2021. In February, its debt rating was downgraded by S&P Global Ratings. “The downgrade reflects Belk’s poor operating trends and limited prospects for a sustained recovery,” S&P stated at the time. “Belk’s operating performance through the third quarter of fiscal 2023 (ended Oct. 29, 2022) deteriorated year-over-year with higher markdowns and significant cash burn. This was despite modest sales growth in the quarter.”
The company is privately owned owned by Sycamore Partners, an equity firm. The rating company described Belk’s capital structure as “unsustainable,” concluding: ““The negative rating outlook on Belk reflects our forecast for difficult operating conditions and its highly uncertain path to recovery. We believe the company is dependent on favorable market conditions to meet its financial obligations and its liquidity position may deteriorate over the next 12 months.”
The company is of course projecting a more optimistic outlook as it attempts to drums up a little excitement about its converted stores. In Palm Coast, the new outlet “offers shoppers their favorite designer labels,” a company email stated today, “plus new brands, at a discounted price and includes everything from clothing, shoes, handbags, home décor and more – all at final sale. In fact, this new outlet concept will carry merchandise from Belk’s top stores and offer nearly 3x the assortment of products.”
As in other locations converting to outlet stores, the grand opening event will include a ribbon-cutting ceremony starting at 10 a.m., as well as live music and treats for customers to enjoy as they explore the store, which is managed by Kimberly Eikner.
jeffery seib says
It’s always a bit confusing to me when our local shopping vendors end up closing down or some other procedure like Belks is doing that indicates local shoppers are just not coming in the doors. The confusion stems from when Palm Coast residents are polled on what they would like to see locally many say more shopping opportunities. But it appears that many of the local big box stores like Kohls, Bealls, and Belk’s are not doing that well here. Sure, Target and Walmart do well everywhere so I don’t think that’s what folks mean. People need to patronize local stores so that there will be a greater number someday.
MEH says
it’s the crappy way the streets are designed in this city. businesses are tucked away and hidden from sight.
The Sour Kraut says
The last dying gasp of another retailer.
Friedrich Gretsch says
You’re exactly right. They’ll all be gone by the end of this decade.
Dillards and Macys are next.
Resident says
Looking forward to checking out the new store, I always forget it’s back there.
Marsha says
The store is full of clothes. And many have their brands or name brands on the labels, but have never seen seen them in the store. Their shoes only consisted of out of date boots. I was only in the store ten minutes and felt I was in a thrift shop. Prices are still high and the clothes very blah. I have a feeling the store will not be able to make it.
I love Belks and so disappointed.
Samuel says
Another store soon to be among the many others that open and close and stay empty because City Officials keep having developers build, build, build. Poor planning with no direction or correct outcomes.
Dennis C Rathsam says
Super Dooper! Just what P/C needs, another junk store. Lots of new folks, more and more homes, the largest city,so the news says. Wheres are the new eaterys? Jersey Mike,s? Why do we not attract some quality stores? Between Ollie,s Bells Outlet now Belk. And all you here is shop in town….. Wellcome to WALMART… Can I help ya?
Mary Fusco says
Dennis, if you can afford to eat at fancy eateries, shop at high end stores, you are among the unusual in Palm Coast. From what I read, most are living week to week. Junk stores are just that. I will agree with you on that. As for the new folks, they will learn soon enough when they start paying for their overpriced homes. BTW, I shop at walmart.
The Sour Kraut says
What we really need is for the old Golden Corral to be turned into a Trader Joe’s.
Leila says
Not a bad idea! Plenty of parking and it would be a draw.
tulip says
Brick and mortar stores are failing because too many people shop online instead and, because of that, there aren’t enough live customers coming through the door As long a corporate keeps making lots of money through online shopping, they could care less about free standing stores. I went to Belks a few days ago and, as someone else said, it wasn’t very good at all and very confusing to walk around and find things. I don’t see it succeeding, especially where it’s all sales final, no returns! Tjat’s going to eliminate a certain amount of customers who want to buy a gift for somebody because if the recipient doesn’t like the gift, it can’t be returned. It will be interesting to see how their grand opening goes Saturday.
Leila says
Good comments here. I visited this store which had a soft opening days ago and was extremely disappointed in what I saw. It more closely resembles a giant thrift store now. Not sure who thought this would attract customers. It looks to me like a staging area to rid themselves of cheap merchandise before going out of business.
I am sorry about this. I loved this store, but not what it has become. It will be gone by the end of the year. And then we will have another vacant building over there. Not very good planning. Could be just me, but retail is not given the respect it deserves here, or anywhere in America anymore.