Parisian

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Parisian
Type	Merged into Belk
Founded	1877
Headquarters	Birmingham, Alabama USA
Industry	Retail
Products	Clothing, footwear, bedding, furniture, jewelry, beauty products, and housewares.
Parent	Belk
Website	http://www.belk.com/

Parisian was a moderate to upscale U.S. chain of department stores headquartered in Birmingham, Alabama.

Founded in Birmingham, Alabama, Parisian had undergone a series of restructurings and mergers during its 130-year history, becoming a regional chain throughout much of the southeastern United States by the 1980s . Belk bought the department store chain from Saks Incorporated in a $285 million deal on September 30, 2006. In addition to closing a handful of the stores, Belk immediately resold five of the store locations in Michigan, Indiana and Ohio to Bon-Ton Stores although Bon-Ton did not acquire the corporation side of Parisian and are not allowed to open any new stores or convert other stores to the Parisian nameplate.

An official grand re-opening of the Parisian stores rebranded as Belk took place on September 12, 2007.

[edit] History

[edit] Beginnings

The original Parisian store was founded in 1877 in Birmingham by sisters Bertha and Estella Sommers under the name Parisian Dry Goods & Millinery Company. The Sommers sisters moved the store three times and sold it in 1911 to Louis Gelders and G. W. Beringer, who renamed it The Parisian Company. Lauren Bloch, the store's general manager, bought it in 1918 and renamed in Bloch's Parisian.

Carl Hess, a German immigrant, and William Holiner bought the store in the early 1920s and moved it to a larger building in Birmingham in 1928. The Great Depression pushed the company into receivership and near demise in 1932, though it emerged and grew in the 1940s and 1950s.

Emil Hess (son of Carl Hess) and Lenny Salit (son-in-law of William Holiner) developed a credit program in the 1950s, and the store was one of the first in the country to offer free gift wrapping, free shipping and a liberal return policy.

Parisian opened a second store in 1963, a suburban store that was an immediate hit. The company opened the third store in nearby Vestavia in 1965 and the fourth in Eastwood Mall in 1969.

In the 1970s, Parisian added stores in Huntsville, Montgomery and Florence, Alabama.

In the 1980s, Parisian anchored major mall developments, including Bel Air Mall in Mobile (1984) and Madison Square Mall in Huntsville (1984).

[edit] Growth of Parisian in the 1980s and 1990s

Parisian's owners took the company public in 1983, raising $22.5 million for expansion. A second offering in 1986 raised an additional $18 million. Parisian expanded into Dothan, Pensacola, Chattanooga and Atlanta.

Hooker Company, an Australian investor, bought Parisian in 1988 for $250 million and pledged $125 for an aggressive store expansion. Hooker filed for bankruptcy during the late 1980s economic downturn. Donald Hess, who had taken over operations from father Emil Hess, bought Parisian back and — heavy with debt — sold a 45 percent interest to Lehman Brothers in 1990, which injected $35 million into the company.

Parisian opened nine new stores 1992 and opened five more stores in 1993, stretching its footprint into Detroit and Nashville.^[1]

[edit] Acquisition by Proffitt's in 1996

In 1996, Proffitt’s Inc. bought 38-store Parisian for $200 million and assumed Parisian's $250 million debt. Proffitt's, which had acquired Younkers and McRae's two years before, also acquired G.R. Herberger's in 1996. In 1997, Proffitt's included five brands: 19 Proffitt's stores, mostly in Tennessee; 29 McRae's stores in Alabama and Mississippi; 48 Younkers stores, mostly in Iowa and Wisconsin; 40 Parisian stores; and 39 Herberger's stores, concentrated in the Midwest.

Proffitt's continued to make acquisitions, buying the Carson Pirie Scott chain of 52 stores in the Midwest in 1997 and Brody's in North Carolina in 1998. Proffitt's bought Saks Fifth Avenue for $2.1 billion in 1998, which included 100 Saks stores and 40 discount Off 5th outlet stores, and changed its own name from Proffitt’s, Inc. to Saks Incorporated.^[2]

At its height, Saks Incorporated operated more than 250 medium to high-end department stores under its Saks Fifth Avenue Enterprises group, the Parisian division, the Northern Department Store Group (Younkers, Herberger's, Carson Pirie Scott, Bergner's, Boston Store), and its Southern Department Store Group (Proffitt's and McRae's) — plus more than 50 Club Libby Lu specialty shops.

[edit] Sale of Parisian to Belk in 2006 and conversion

Belk, Inc., a privately held department store chain based in Charlotte, purchased the Proffitt's and McRae's stores from Saks on March 8, 2006, and immediately converted them to the Belk nameplate. On August 2, 2006, Belk announced the $285 million purchase of Parisian — 38 Parisian department stores, a 125,000 square foot administrative/headquarters facility in Birmingham, Alabama, and a 171,000 square foot distribution center in Steele, Alabama — from Saks.

On February 2, 2007, the company further announced plans to change its share of Parisian stores over to the Belk nameplate by September 12, 2007. With the Parisian transaction complete, Belk operates 315 stores in 19 states. ^[3]

During March 2007, elements of Parisian's operations such as its website were incorporated into those of Belk. Parisian's Steele distribution center closed by the end of the same month, eliminating 84 jobs. Another phase of transition involved conversion of private brands such as Parisian Signature and Parisian Bébe, beginning in June and continuing throughout the summer.

Signage and marketing for the Belk-owned store locations displayed the Belk name by September 1, 2007.

[edit] Sale of Five Parisian store locations to Bon-Ton in 2006

On October 25, 2006 Belk announced the $22 million sale of four Parisian stores and rights for the construction of a fifth store to The Bon-Ton Stores, Inc. The store locations included:

• Livonia, Michigan - Laurel Park Place - 148,800 sq. ft.
• Rochester Hills, Michigan - Meadowbrook Village - 120,500 sq. ft.
• Beavercreek, Ohio - The Mall at Fairfield Commons - 130,200 sq. ft. - now an Elder-Beerman.^[4]
• Indianapolis, Indiana - Circle Centre - 144,000 sq. ft. - former site of the L. S. Ayres flagship store - now a Carson Pirie Scott.^[5]
• Clinton Township, Michigan - The Mall at Partridge Creek - 120,000 sq. ft. (opened October 18, 2007; first new location under new ownership)

The sale closed on October 31, 2006. ^[6]

[edit] List of Former Parisian Locations

[edit] Existing stores converted to Belk nameplate

[edit] Alabama

• Birmingham - Colonial Brookwood Village - 107,416 sq. ft., Opened 2002 in former McRae's location
• Birmingham - Downtown (flagship) - 21,500 sq. ft.
• Birmingham - Riverchase Galleria - 203,500 sq. ft., Opened 1986
• Birmingham - The Summit - 114,534 sq. ft., Opened 1997
• Decatur - Colonial Mall Decatur - 90,300 sq. ft.
• Dothan - Wiregrass Commons Mall - 61,692 sq. ft.
• Florence - Regency Square - 90,000 sq. ft. (2 stores; Main store 50,000 sq. ft., Men's/Kid's 40,000 sq. ft.)
• Gadsden - Colonial Mall Gadsden - 80,240 sq. ft. (formerly McRae's)
• Huntsville - Madison Square Mall - 115,000 sq. ft.
• Huntsville - Parkway Place - 167,256 sq. ft.
• Mobile - Bel Air Mall - 122,500 sq. ft.
• Montgomery - Eastdale Mall - 127,938 sq. ft. (2 stores; Main store 68,970 sq. ft., Men's/Kid's 58,968 sq. ft.)
• Trussville - (metropolitan Birmingham) Colonial Pinnacle at Tutwiler Farm - 100,794 sq. ft.
• Tuscaloosa - University Mall - 172,396 sq. ft. (2 stores; Women's Apparel, Shoes & Cosmetics 82,222 sq. ft., Men's, Children's, and Home 90,174 sq. ft.)

[edit] Arkansas

• Little Rock - Pleasant Ridge Town Center - 120,000 sq. ft.

[edit] Florida

• Jacksonville - The Avenues - 118,300 sq. ft.
• Pensacola - Cordova Mall - 75,000 sq. ft.
• Tallahassee - Tallahassee Mall - 115,000 sq. ft.

[edit] Georgia

• Alpharetta - North Point Mall - 87,407 sq. ft., Opened in 1995 in former Mervyn's location
• Atlanta - Northlake Mall - 103,000 sq. ft., Opened in 1992 expansion
• Atlanta - Phipps Plaza -170,000 sq. ft., Opened in 1992 expansion
• Columbus - Peachtree Mall - 87,600 sq. ft., Opened in 1986 expansion, closed February 2007
• Douglasville - Arbor Place Mall - 142,550 sq. ft., Opened 1999
• Duluth - Gwinnett Place Mall - 128,000 sq. ft., Opened in 1993 expansion
• Kennesaw - Town Center Mall - 131,000 sq. ft., Opened in 1993 expansion
• Lithonia - The Mall at Stonecrest - 145,974 sq. ft.
• Macon - Macon Mall - 105,000 sq. ft., Opened in 1998 expansion

[edit] Michigan

• Livonia - Laurel Park Place - 145,800 sq. ft. (Sold to The Bon-Ton Stores, Inc., remaining as Parisian)
• Rochester Hills - The Village of Rochester Hills - 122,276 sq. ft., Opened 2002 (Sold to The Bon-Ton Stores, Inc., remaining as Parisian)
• clinton township, hall rd., partridge creek mall

[edit] Mississippi

• Tupelo - The Mall at Barnes Crossing - 84,000 sq. ft.

[edit] Tennessee

• Franklin (metropolitan Nashville) - Coolsprings Galleria - 132,000 sq. ft.
• Knoxville - West Town Mall - 143,900 sq. ft.
• Chattanooga - ( Hamilton Place Mall) - 72,000 sq. ft.

[edit] Scheduled prior to Belk purchase

[edit] 2007

• Rogers, Arkansas - Pleasant Crossing - 100,000 sq. ft.
• Clinton Township, Michigan - The Mall at Partridge Creek - 120,000 sq. ft. (Sold to The Bon-Ton Stores, Inc.; opened as Parisian)
• Ridgeland, Mississippi (metropolitan Jackson) - Renaissance at Colony Park - 130,000 sq. ft.[1]

[edit] 2008 (opened as Belk)

• Prattville, Alabama (metropolitan Montgomery) - High Pointe Town Center - 80,000 sq. ft.
• Baton Rouge, Louisiana - Perkins Rowe - 120,000 sq. ft.

[edit] Closed or Converted to Other Stores

[edit] Alabama

• Birmingham - Western Hills Mall - 129,000 sq. ft. (closed March 2005)
• Birmingham - Eastwood Mall - (opened 1969; started out as women's only store, later expanded and added men's lines. Replaced with newer store in 1989)
• Birmingham - Eastwood Mall - (Children's & Home location, opened in former JCPenney, closed 1989 when newer store opened)
• Birmingham - Eastwood Mall - (opened 1989, closed January 2005)
• Birmingham - Five Points West - (closed July 1999)
• Birmingham - Vestavia Hills - (closed 1998)
• Montgomery - Montgomery Mall - (closed March 2006)

[edit] Florida

• Central Florida MSA/Ocoee – West Oaks Mall- 212,000 sq. ft., Acquired from Dillard's in 1998, was a Gayfers; converted to McRae's in 2004, sold to Belk in 2005
• Central Florida MSA/Orlando – The Florida Mall- 120,000 sq. ft., Acquired from Dillard's in 1998, was a Gayfers; sold to May Company in 2001, was Lord & Taylor, empty as of September 16, 2006
• Central Florida MSA/Oviedo – The Market Place- 180,000 sq. ft., Acquired from Dillard's in 1998, was a Gayfers; sold to Burdines in 2000; now Macy's
• Central Florida MSA/Sanford - Seminole Towne Center - 141,000 sq. ft., Opened in 1995, converted to McRae's in 2004, sold to Belk in 2005

[edit] Georgia

• Savannah - Savannah Mall - 102,000 sq. ft., Opened 1990, closed 01/03; now Bass Pro Shops

[edit] Indiana

• Indianapolis - Circle Centre - 143,000 sq. ft., Opened September 1995; converted to Carson Pirie Scott, February 2007
• Indianapolis - The Fashion Mall at Keystone - 128,000 sq. ft. Closing 2007, re-opening as Nordstrom

[edit] Ohio

• Cincinnati - Beechmont Mall - Closed 07/99, later demolished
• Cincinnati - Forest Fair Mall - Closed 06/98; now Bass Pro Shops
• Cincinnati - Kenwood Towne Centre - Closed 2/17/07; to be demolished and replaced with Nordstrom, scheduled to open 2009.
• Beavercreek - The Mall at Fairfield Commons - 130,000 sq. ft. (Sold to The Bon-Ton Stores, Inc.; will become a second Elder-Beerman store)^[7]

[edit] South Carolina

• Columbia - Columbiana Centre - 95,000 sq. ft., Closed, now JCPenney
• Columbia - Midtown At Forest Acres - Closed in 2007 due to an existing Belk at mall prior to merger.
• Greenville - Greenville Mall - 120,000 sq. ft, Converted to Proffits in 1999; closed; store became Palmetto Hame and Garden, demolished.
• Charleston - Citadel Mall - Opened as Belk, sold to Parisian, sold to JCPenney.

[edit] Tennessee

• Chattanooga - Hamilton Place Mall - Became a second Dillard's on 3/1/2007.
• Collierville (metropolitan Memphis) - The Avenue Carriage Crossing - 124,000 sq. ft., Opened 10/05 (Sold to Macy's.)

[edit] Point of Interest

• During Parisian's biggest growth period, Jon Coffelt, while living in Birmingham, Alabama, was commissioned by store designer, Jim Mitchell to paint over 100 works for the Parisian Department Store chain beginning in 1988. These pieces were dispersed throughout the chain with a considerable number going to its Birmingham, Decatur and Chattanooga Stores. This helped launch Coffelt's career as a visual artist. Coffelt currently lives and works in New York City. Incidentally in 2001 through Mary Dinaburg Gallery in NYC, Coffelt's work was included in some of the newly acquired Saks Fifth Avenue stores once under the Parisian store family.

[edit] Other uses in retail

• Bon-Ton stores continue to operate three of the five stores purchased from Belk under the Parisian name, although they are not allowed to open any new or convert other stores under the Parisian nameplate.
• Another Parisian department store chain is currently in development in Indonesia by Matahari, which is owned by Lippo Group. The first store opened at December 22, 2007 at Mal Taman Anggrek. Another store would open soon located at Mega Mall Pluit and City of Tommorow Surabaya^[8]

[edit] References

[edit] Additional resources

1. ^  , Merchandising "Saks Incorporated Annual Report (Parisian)". SEC Filing, 10 April 2006.
2. ^  ""The Look" Parisian Fall 2006 Catalog". Parisian., September 2006.

[edit] External links

• Saks Incorporated corporate website
• Belk official website
• Parisian corporate history