Belk reaps rewards of omnichannel strategy

Months after announcing a major upgrade in its e-commerce capabilities, Belk reported that its online sales grew 46% in the third quarter.

The Charlotte, N.C.-based operator of 300 department stores in 16 states attributed the increase in Internet sales to the company’s “Yes! We Have It” item locator program and store fulfillment of digital sales initiatives.

The company said total sales for the 13-week period were $859.5 million, or 0.1% below the prior-year period. Same store sales were down 0.8%. Year-to-date sales increased 0.2 % to $2.72 billion compared to the same 39-week period last year. Same store sales declined 0.1%, while e-commerce sales grew 44% for the period.

“Third quarter sales were essentially flat, in line with most of the department store sector. The slowdown in sales, coupled with the increase in expense associated with our ongoing strategic investments, resulted in a year-over-year decline in profits,” said Tim Belk, chairman and CEO of Belk Inc. “Our e-commerce business continues to show strong growth, and we were pleased with the opening of two new stores and three expanded and remodeled flagships in October. We believe we are well positioned for the holiday season and are encouraged by the prospects for an improved trend.”

This year Belk announced a $700 million planned investment on a comprehensive omnichannel initiative that will enable the company to connect seamlessly with customers regardless of where they are, offer multiple ways to provide what they want, enhance their in-store shopping experience, and create more personalized customer interactions. The company also plans to increase its retail footprint.