I’m perplexed on how people think turning a full line store to an outlet is an “grand opening “ or “new store”?
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Yep outlet stores are just a way to act like there’s growth. And a place to store all the clearance from other stores that way they aren’t on the floor there and can keep the inventory for the balance sheet. As soon as they would “throw away” the inventory they take a huge loss. They can keep the goods as full price on the balance sheet and it helps their assets.
Belk is trying to gaslight people into thinking they are doing well opening these outlets, when in fact, it’s just a sneaky way to leaseback a store that should be closed like the previous post said. Outlets are doing horribly, and for belk to have a ribbon cutting and go through all the shananigans about opening an outlet shows how they are trying to mislead the community and employees.
I think about the 1st round of outlets. The Bossier City store in Louisiana. The store hasn't done well since it's opened and had gone thru a ton of management!
It's still not doing well even as an outlet. I think we own the building but lease the land. Getting out of that lease and not filing bankruptcy on it would cost a ton $$$...that's why it's still open....bankruptcy has to happen...our $$$ are not there
The "outlets" are stores that should have closed!
They can't close stores because they are being leased back to KKR! If the store is closed that means no leased payment!
I’m wondering how it works in to have the outlet on the first floor and traditional Belk on the second floor. Is that concept really working? I can’t imagine that it is. I’m also wondering if other stores have a huge about of clearance. At least 60% of my store is clearance now.
Having this much clearance tells us that it’s NOT selling - they buy too much, especially too much of the wrong ugly cheap stuff nobody wants.
So does that stuff sell at the outlets? I wonder.