Belk Store Services
Tim Belk
By Bob Barber

Mac McCarley introduced our speaker, Tim Belk, President and CEO of Belk, Inc. Tim is a graduate of Williams College and the University of North Carolina and is a grandson of the founder of Belk Stores. Tim joined Belk Stores as a management trainee in Gastonia and has worked his way up and through the various functional areas of the Belk operations. He was named Chairman and CEO in 2005 following the retirement of his uncle John Belk.
 
Tim related that the Belk organization is 119 years old and that William Henry Belk and his brother had grown Belk Stores through partnerships throughout the Carolinas. In 1998, 112 separate corporations, comprising the Belk Stores, were consolidated into Belk, Inc.. In the last eight years the company has seen many changes, including the consolidation of 13 operating divisions into four and the consolidation of many duplicated functions to the corporate level.
 
He discussed the predominant Belk customer profile as being aged 35-54, female, with income of $35,000 to $100,000 and fitting into one of three lifestyle categories of Classic, Modern, or Trendy. Belk is putting a lot of emphasis on customer research and customer satisfaction and Tim played two audio clips of direct customer comments about service levels in two different stores as examples of the kind of feedback they are soliciting.
 
Belk, Inc., has seen strong growth in the last few years and now operates 309 stores in 16 states from Maryland to Texas and from Missouri to Florida. Their stores range in size from 40,000 square feet in Corinth, MS to 320,000 in the rightfully called "flagship" store in SouthPark Mall.
 
Belk, Inc., seeks to distinguish itself as the dominant provider of branded goods, with high customer service, and convenient access to stores. The company also seeks to develop strong private brands, which can provide value for consumers and more stable sales and profits for the company. Currently Belk private brand products account for nearly 21% of sales.
 
To ensure solid and improving customer service, the company is investing in technology, improving processes, and is implementing the well-know 6 Sigma program.
 
Financially, the company has performed well in the last few years. Sales have experienced a 5-year compound average growth rate (CAGR) of 13% and reached $3.7 billion in 2006. Net income grew 32% in 2006 to $182 million and has been generating a 5-year CAGR of 21%.
 
The future outlook for Belk, Inc., calls for continued growth, in same store sales, in new store construction, and appropriate acquisitions. Belk is in the final stages of integration of the last major acquisition of the Profitt's/McRae's and the Parisian chains from Sak's, Inc. This acquisition rapidly grew the company from 229 stores in 14 states to its current 309 stores in 16 states.
 
In response to questions, Tim described the internet as both a threat and an opportunity for retailers. Belk, Inc., intends to take it as an opportunity and plans to grow internet commerce to 3% of sales in the next three years. Asked about promotion of "made in America" brands, Tim stated that the company is indifferent to where products are manufactured because the customers want value, growth in private brands largely requires use of foreign partners, and many product segments are simply no longer available in large quantities as US manufactured goods.
Regarding a downtown store, Tim stated that their model calls for at least 50,000 potential customers in the immediate market of any new store and that when the growing downtown Charlotte market reaches that level, they will gladly consider a new downtown store. Regarding treatment of on the floor sales associates, Tim stated that Belk, Inc., would not follow the Circuit City model in treatment of its sales associates.
 
Head Table: Al Allison, Leigh Derby, Luther Moore, Mac McCarley, Shannon Vaughn, Wes Clark
Visitors & Guests: Chris Kemper; Visitors & Guests: Doug Booth; Song: Meg McElwain

• Luther Moore introduced Anthony Foxx as the club's newest Rotarian. Anthony is an attorney with Hunton & Williams and can be reached at afoxx@hunton.com. Welcome!
 
• Foundation chair Pender McElroy reminded club members of the importance of supporting THEIR Rotary Foundation and recognized the following: Will Barnhardt, PHF; Charlie Pitts, Level 3; John Johnson, Level 4.
 
• David Erdman will likely become the new chairman of the Mecklenburg County Democratic Party this month; Rob Thomas has joined Carolina Premier Bank as chief operating officer; WBT (Rick Jackson), which was among the first commercial radio stations in the nation to go on the air, is celebrating 85 years of broadcasting.

• COMMUNITY OPPORTUNITIES: Everyone is invited to attend the Rotary Habitat House dedication planned at noon on Saturday, April 21; Volunteers are needed for the March of Dimes WalkAmerica scheduled for April 21st at Gateway Village Promenade in uptown Charlotte. Help is needed with setup, collecting and counting large sums of money and with registration. Contact Barbara Nordquist at 704-377-2009 or bnordquist@marchofdimes.org for additional information.
 
• Rotaract is an international program of Rotary International for young professionals ages 18-30 who want to make a difference. Activities include Community Service, International Service, and Leadership Development. The Rotaract Club at UNC Charlotte is asking Rotarians to send candidates for membership their way. Contact Allison Reece at 704-563-4861, areece@jacarolinas.org or Denise Medeiros at 704-687-7784, dvmedei@uncc.edu for additional information.

• From the GSE team BLOG posted Tuesday, April 3 by Andrew: It is with great shock and sadness that the team learned on Sunday about the murder of two police officers who served with the Charlotte Mecklenburg Police Department. Officers Jeff Shelton, 35, and Sean Clark, 34, were shot about 11:15 p.m. Saturday at the Timber Ridge apartment complex in east Charlotte during a struggle after they responded to an unrelated domestic disturbance call. It is particularly shocking to us as three of the members of our team are employed by the Metropolitan Police Service in London. We hope to be able to pay our respects at the public lying in state of the two officers at the Calvary Church in Matthews this Thursday subject to our Rotary hosts being able to get us there. The funerals take place the next day at the Calvary Church. Our thoughts and prayers go out to the families and colleagues of these two officers.

The Classification and Membership Committee recommend and the Directors approve for consideration for all members, the following NEW MEMBERS. Should you question the eligibility of any nominee, please call the Rotary Office by April 16th. You will be contacted by a member of the Board. Otherwise, no reply is necessary and election will proceed according to our bylaws.