VIEW MAGAZINE. Belk Goals for Fiscal 2012 Seek to Build on Last Year s Success. Shoe Renovation Strengthens Business in Florence, S.C.

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1 VIEW MAGAZINE vol. 60 no. 2 March 2011 Belk Goals for Fiscal 2012 Seek to Build on Last Year s Success Shoe Renovation Strengthens Business in Florence, S.C.

2 my viewpoint our mission To satisfy the modern Southern lifestyle like no one else, so that our customers get the fashion they desire and the value they deserve. our vision For the modern Southern woman to count on Belk first. For her, for her family, for life. our values Be encouraging of growth and change. Be proud of our rich heritage. Be involved in our communities. Be relentless with customer care. Be committed to the success of our associates. Be the best at what we do. table of contents Store Profile: Florence, S.C. # Fiscal Year 2012 Corporate Goals...4 Fashion Buzz: Spring Most Wanted...6 Fashion Merchandise Review...8 Belk Sustainability...9 News of Note...10 LP Awareness...11 Juniors Hot Picks Spring This issue of View Magazine is chock full of great fashion information for the coming season, from men s and women s Most Wanted lists, to new product launches, private brand expansions and for the first time ever a Juniors Hot Picks for Spring. Since I love Italian shoes, I am very excited to see Belk launch its new Via Neroli line of Italian-inspired shoes, boots and sandals. Now customers can get a sharp-looking, high-quality product that stands up to name brands. ND New Directions is also expanding this spring with a new Weekend line that will meet the casual, weekend lifestyle needs of our customers (pg. 8). Read about how stores in Mooresville and Morehead City, N.C. helped people in their local areas with special efforts over the holidays, and how the Belk Northern Division engaged local charities in new ways that benefited both store associates and the community at large (pg. 10). Also, Belk s Sustainability initiative kicked off in full force on March 3 with a renewed commitment to sustainable business practices and an exciting partnership with EarthShare, a non-profit that works with businesses to support local and national environmental charities focused on creating a healthy and sustainable environment (pg. 9). EarthShare provides a great way for us all to make a difference in our world today and for future generations. Peace belk fast facts Founded in Stores 16 States 22,000 associates $3.35 billion FY10 revenues 3 Divisions: Northern (Raleigh, N.C.) Southern (Atlanta, Ga.) Western (Birmingham, Ala.) special thanks to the following contributors Dianna Dix, Lisa Edwards, Arlene Goldstein, Yolanda Johnson, Becky Pinion, Darlene Starcher, Bob Vranek, Darrell Williams and all the Belk merchandise buyers and executives who provide information for View Magazine. The new generation of towel (left) is loftier, softer and heavier than before. product pick Home Accents Egyption Cotton Towel Belk s legacy Home Accents towel is being restored to its former glory using two-ply cotton yarns for a softer, heavier, more absorbent towel (see before and after above). The bath towel is larger in size (30" x 54") than its predecessor, and hand towels and wash cloths are available in 16 fresh colors. Price: up to $

3 Shoe Renovation Project Brings Team Together To Achieve Store Success Magnolia Mall florence, s.c. store profile To keep associates engaged in the excitement and possibilities of the new shoe renovation project in their Belk store in Florence, S.C. #84 last fall, Bob Sager, store manager, held special behind the wall meetings every Friday. There was a huge wall set up to screen the renovation work from customers, so I d take the associates and we d go back and see the progress they were making each week, said Sager. We took before pictures and put them on the bulletin board so that we could remember what it looked like before and compare it to the new. Sager said the team was successful in keeping up sales volume during the renovation period and a combination of teamwork, customer service and communication was key to that achievement. It takes every associate in the store to achieve success and each individual s effort makes the difference in the outcome of any project, he said. Katyra James, shoe selling specialist, agreed that customers were patient throughout the process and that the shoe team kept customers updated on what they could expect. We were constantly communicating with our clientele, making sure they were safe, explaining what we were doing, what they could expect when it was completed. That s what kept them coming back. When it was finished they were thrilled with the updates, additional space and new vendor selections. Tony Chandler, visual associate, said the visual presentation of the new department has strong impact and reflects the trends and styles of the season, coordinating well with the merchandise presentation throughout the entire store. We know our customers well and I set the forms with seasonal merchandise that appeals to their lifestyle needs and makes it easy to shop because they can see a complete outfit and purchase it, he said. Chandler said at times he is mistaken for a sales associate and customers ask for his help in choosing items. It s fun to help customers choose things that they like, that fit well and then put together a great look. I always have good encounters with our customers. Experiences like these reinforce for me that I am important to the store and part of the team Newly renovated shoe department 2 Marylyn Muldrow assists a customer in home 3 Tony Chandler, visual associate Florence, S.C. #84 Division: Southern Store Manager: Bob Sager Number of Associates: 140 Selling Space: 104,000 sq. ft. Bob Sager on Leadership Leaders set the tone for relentless customer care expectations by modeling the behaviors that hold us to the high standards the company has set. Make your store a fun place to work. Focus on people and their personal development. Place associates in the positions where they can be most successful. Give direction and make it your responsibility to remove any road blocks or other obstacles that will inhibit associates from doing their very best. 3

4 corporate g als f cus Belk Sets Goals for Fiscal 2012: Continued Sales Growth, Building the Belk Buoyed by the successful launch of the company s new brand last fall followed by outstanding comparable store sales results that out-performed key competitors, Belk has staked out goals for the coming year that build on that success and seek to keep the positive momentum going. Speaking to the company s top executives and merchants at the Spring seasonal strategy meeting in Charlotte on Jan. 12, Tim Belk, chairman and CEO, called the brand launch the biggest story of last year, and an incredible accomplishment, adding that everyone in the organization played a critical part in its success. What is even more incredible is that we did (the brand launch) while delivering our sales plan and going the extra mile to serve our customers, he said. Belk cited associates attitude and effort that led to the company s best sales performance ever on the day after Thanksgiving and lauded Belk.com for its outstanding fourth quarter e-commerce sales results. (Belk s comparable store sales growth as of the end of December was 5.0 percent, compared to Macy s at 4.7 percent, Kohl s at 4.6 percent, Dillard s at 3.0 percent and JCPenney at 2.7 percent.) Following are the four corporate goals set for fiscal year 2012 and a listing of the 17 strategies that will support achievement of the goals. Articles in upcoming issues of View Magazine will provide more details on the individual goals and strategies. Goal 1 Achieve Comp Store Sales Growth above Our Competitors Belk is planning total sales of $3.6 billion, an increase of $106 million over the past year. Approximately $79 million of this growth is targeted for modern and trendy merchandise. key strategies Grow the following merchandise focus areas with modern emphasis: Denim Shoes Jewelry Dresses Youth Execute store remodels, which include nine major store remodelings, 34 shoe department expansions, 66 open-sell fashion jewelry remodels and 97 denim remodels Expand e-commerce Grow private brands sales penetration Complete Project Impact Goal 2 Establish the New Belk Brand Belk will continue building its brand externally by focusing on how it communicates with customers via advertising, Facebook, mobile, , blogs and other media, by deepening relationships with existing and new customers and by strengthening our community involvement. key strategies Build out branding initiatives Determine long-term strategy and vision Deepen customer relationships and win new customers Strengthen community involvement 4

5 Brand, Improving Processes and Profitability Goal 3 Build on the Belk Culture Belk will continue building its brand internally by focusing on realigning the company s culture with the new brand through implementation of the strategies listed under this goal. key strategies Embrace mission, vision and values Establish relentless customer care Improve Belk s position as an employer of choice Increase inclusion and diversity Goal 4 Improve Processes, Expenses and Profitability This goal is all about growth and change. It addresses the key infrastructure and process initiatives that will support the company s success next year and in the years ahead. key strategies Expand business capabilities through investments in the company s IT infrastructure, new merchandise systems and e-commerce Implement supply chain improvements Implement strategic sourcing which is expected to produce significant expense savings Re-engineer store support processes in order to place more focus on selling 5

6 fashion buzz By Arlene Goldstein, Vice President, Trend Merchandising, Fashion Direction Women s 1. Utility chic. From soldier savvy to safari chic, say yes to cargo pockets, epaulets, zips, chains, snaps, studs and grommets. 2. Count on the sleeveless cozy in a wide range of colors and interesting textures for a fresh fashion statement. 3. Instant style is yours with this season s flirty dress includes eyelet, lace, ruffles and romantic florals. 4. Plan spring with precision as you pick a new pant. Consider cargos and crops, slim legs and flares. 5. The fem top is a fresh fix for any wardrobe dilemma. Be charmed by handcrafted touches, lace ruffles and pussy cat bows. 6. This spring, something floral will feel so fresh. Botanical inspirations are everywhere. 7. The fashion cardi. This sweater is spring s most important completer piece. 8. Amp up any look with an array of arm 9. For spring, shoes say it all, and topping the list? Anything that is flower 6 candy. accented.

7 Men s 1. Sleek or sporty, the perfect new polo can instantly improve your style. 2. Make patterned shorts a part of your warm weather wardrobe. 3. Preppy shirts, oxfords, retro plaids and chambray. 4. This spring, fashion meets function so count on the cargo short detailed to perfection. 5. Easy, elegant, effortless, you will be looking good in the season s favorite completer piece, the linen 6. sportcoat. Designed to distinguish you from the rest, bold dress color shirts are a must. Bright green, cantaloupe, teal and pink. 7. Prepare to prep with old school ties that have never looked better. Bow ties, as well as conventional options in rep stripes, plaids and neats. 8. Keep it slim and simple. Yes, this time of year the khaki suit says it all. 9. Go the distance with the classic driving moc the shoe with more laid back loafer luxury and ivy league inspiration. 7

8 fashion merchandise PRODUCT LAUNCH Italian-Inspired Via Neroli Shoes Inspired by the flair, fit, and quality construction of Italian-made footwear, Belk s new Via Neroli line offers customers updated modern shoe styles that layer nicely with Belk s existing brands and national name brand selections, says Dave Neri, executive vice president and GMM, shoes, accessories, cosmetics and fine jewelry. We wanted this line to express the Italian influence of styling, quality and comfort that is appealing to our customers. It includes many different features, varying heel heights and materials that meet her lifestyle needs including career, weekend, boots and sandals, he said. They present well on the foot and look very nice. Via Neroli shoes are constructed with high quality leathers and materials and have padded insoles and other modern comfort features. Styles were designed with special attention to distinctive elements such as defined lines, edgy angles and interesting treatments such as pleating, ruching, zippers and beading. Other fine details, such as the logo embossed on the shoe soles and incorporated into zipper pulls, will add to the upscale image of the product, said Neri. The Via Neroli line launched in 133 doors beginning in late February and will roll out to all doors by next spring. Price points range from $75 to $85 for shoes and $90 to $165 for boots. We re very optimistic about how the line will be received by customers and look forward to expanding the line to include handbags, costume jewelry and sunglasses in the future, said Neri. PRIVATE BRANDS EXPANSION ND New Directions Belk s popular ND New Directions line is branching out to include an ND Weekend label offering casual, modern and trend-right styles perfect for the casual southern weekend lifestyle. ND Weekend will be merchandised together in a shop concept within the ND department. Featured items will include cotton ribbed modern-styled tees and tanks, burnout tees with embellishments, slub jersey tops for layering, and washed stretch twill and poplin bottoms with casual cargo styling. Bottoms are offered in several lengths including capri, Bermudas, shorts and convertibles. ND Weekend woven tops and strappy sundresses have an edgy feminine feel with distinctive detail and decorative trimming. ND Weekend merchandise will be delivered in late March to 183 doors. 8

9 Making an Ecological, Social and Economic Impact on Our World Belk kicks off a corporate sustainability initiative this month led by Ron Shealy, executive vice president, operations. The goal of the initiative is to research, develop, implement and support sustainable business practices in Belk s internal operations and supply chain to benefit the environment and the communities we serve. David Flowers, director, Jackson Distribution Center, and Todd Huston, vice president, product development, private brands, serve as co-leaders of the Belk Sustainability Team. Over the next several years, the committee will be helping direct the sustainability efforts of Belk. Information about the company s roadmap for sustainability and a review of the initiative s longrange plans and objectives were reported in the Belk Sustainability newsletter distributed company-wide in late January. A Belk Sustainability website was also launched on the Hanger that contains the latest news and updated information on the company s efforts to protect and preserve the environment. Belk Teams with EarthShare to Create Sustainable Environment Belk has engaged in a partnership with EarthShare, a non-profit organization that works with businesses to support local and national environmental charities whose efforts help create a healthy and sustainable environment. EarthShare was founded by its member charities in 1988 to connect people to environmental nonprofits through workplace giving, volunteer opportunities and environmental education. Today, EarthShare represents 71 national organizations and hundreds of local groups in 19 states. Key DATES Environmental Giving Campaign March 3 April 30 Associates will have the opportunity to contribute to environmental organizations through EarthShare s Give at the Office program. There are two methods of payment: check or payroll deduction. Sale of Belk Reusable Bags April 2011 (while supplies last) An attractive blue shopping bag will be available for $2 each at all Belk stores with $1 donated to EarthShare for each bag purchased. Earth Day April 22 One environment. One simple way to care for it. Top 3 Things to Know: 1. EarthShare s mission is to engage individuals and organizations in creating a healthy and sustainable environment. 2. EarthShare was created by member organizations more than 20 years ago so that together they could raise public awareness of environmental issues and attain needed financial support for their programs. 3. Donations to EarthShare can be designated to specific charities to support your favorite cause or given as a general donation shared among all of the charities. 9

10 news of note keeping in touch with belk associates Within a day and a half, the requests had been fulfilled and Voliotes and Cranford delivered 38 coats some with extra surprises such as gloves and scarves stuffed into the pockets to the children at the school. We were told that most of these kids came from broken and abusive homes and that our act of kindness was something far more important than the actual coats, said Voliotes. Carol Voliotes and Richard Cranford. MOREHEAD CITY, N.C. Belk Associates Rally to Bring Warmth of a Coat to Local Children in Need Carol Voliotes, ASM, ladies, at Belk in Morehead City, N.C. #283 decided that before she retires in April from her 28-career with Belk, she was going to do something special for the her community during the holidays. With the support of Beth Holcomb, store manager, and Richard Cranford, merchandise coordinator, Voliotes sent out letters to several charities who participate in Belk Charity Day events to learn about any specific needs in the community. They received a response from a fourth grade teacher at Morehead City Elementary School who told them, it is very sad to see how many of our students came to school today without coats The teacher enclosed a list of 32 children s names with their coat sizes and we had only two days before the children were out of school for the holiday break, said Voliotes. It was also a full week away from payday for our associates. Nonetheless, store associates rallied and gave their spiff money, donated gift cards won in a division UPT contest and pooled their personal resources in order to buy each child a coat. When a customer heard about what the associates were doing, she personally donated a $200 gift card to the cause. Volunteers from Avalon Farm sell ornaments outside the Belk store in Mooresville, N.C. MOORESVILLE, N.C. Mixing Community and Business Makes Positive Impression on Customers On the day after Thanksgiving, Kimberly Clark, founder of Avalon Farm Retreat in Mooresville, N.C., gathered eight volunteers and headed to the Belk store (#580) at 3 a.m. to lend a hand to store associates on the store s busiest day of the year. In exchange for their help, the local non-profit organization received a financial contribution from Belk. For Clark, it was an exceptional opportunity to raise an extra $432 for a vital cause. The Avalon Farm Retreat provides self-growth and awareness programs for adults and autistic and special needs children by working in nature among horses and other animals. Terry Rissland, store manager in Mooresville, said that having the extra help was awesome, but admitted that supporting a deserving community need was the most important return. When Clark wanted to sell exclusive ornaments outside the store on Saturdays to raise funds for the farm, Rissland said she couldn t resist. Our customers and associates are passionate about their town and where they live, so anything we can do to make that better is looked upon very favorably, said Rissland. 10

11 lp awareness Early Morning Apprehension Halts Organized Retail Ring In Greensboro, N.C. All around Belk country, customers were anxiously awaiting Belk stores to open on the day after Thanksgiving so they could get an early (4 a.m.) start to their holiday shopping. In Greensboro, N.C. #465, Four Seasons Towne Center, more than 200 customers were in line outside the building including a few unusual suspects that had come for a totally different purpose. Brian Dimmig, loss prevention manager, quickly suspected he might be dealing with members of an organized retail theft ring who were ready to get started on their early holiday stealing. Around 4:20 a.m. a customer tipped off an associate that she suspected another customer was stealing merchandise from the fashion accessories department. The associate immediately contacted Dimmig who located the suspect on the closed circuit TV monitors. As I watched a female suspect conceal a piece of jewelry and begin to leave, I noticed a male customer walk over and speak to her discreetly. That got my attention and I honed in on him and saw another man approach, select, and conceal a silver ring and necklace. The sequence of events began to escalate and it became apparent that there were several suspects involved, said Dimmig, leading him to believe they were indeed members of an organized retail theft ring. The difference between dealing with a ring of thieves versus isolated thefts is obvious, explained Dimmig. In my experience, people who are stealing for themselves don t often take so much of just one type of merchandise, he said. These men were clearly communicating without words and passing signals back and forth, as large volumes of merchandise were disappearing. The behavior is difficult to detect at first, but once you know what you re looking for you never miss it again, he said. Since Dimmig was on duty alone at the time, he called an off-duty police officer who works with the mall security office for backup. The officer arrived as Dimmig observed the suspects leaving the store. Dimmig and the police officer moved quickly to the floor. They apprehended all of the suspects and escorted them to the loss prevention office where all the stolen merchandise was recovered along with a pair of cable cutters. All three suspects admitted to being part of an organized ring and agreed to assist officers in locating other members of their crew. The recovered merchandise was valued at over $4,000. special events Friends & Family Friday Sunday, March 4 6 All Belk Stores Elite Night Wednesday, March 16 All Belk Stores Educator Appreciation Day Thursday, March 24 All Belk Stores benefits basic Q: How do I know how much vacation time I have accrued? A: All eligible employees should log in to Belk HROnline and refer to their most current pay stub. Your available vacation time accrued will be listed under Leave Balances at the bottom of the page. 11

12 VIEW MAGAZINE Belk, Inc W. Tyvola Road Charlotte, N.C Address Service Requested PRSRT STD U.S. POSTAGE PAID PERMIT #3328 CHARLOTTE, NC Juniors Hot Picks First Quarter Spring 2011 American Girl 1. Stripes Stripes Stripes 2. Anything Crochet 3. Flirty Dress 4. Ultra Fem Vest 5. Something Lace 6. Preppy Short Senior Communications Coordinator and Editor Lynda Stadler Art Director Pamela Fernandez View Magazine Viewonline Send your comments or submissions to or contact Lynda Stadler at (704) View Magazine is an internal publication produced by Belk s Corporate Communications Department. It is intended solely for Belk associates and not for external distribution. View Online is a new companion newsletter published monthly on The Hanger and the Associate Portal ( Read each new issue on the first Friday of each month. View Magazine Belk, Inc W. Tyvola Rd. Charlotte, N.C