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Letter to the editor

Bealls Outlets freshened up

The chain commits to clearing the clutter with hopes of a sales rebound.

By MARK ALBRIGHT, Times Staff Writer
Published October 23, 2007

Bealls Outlet stores, like this one on SR 70 near I-75 in Bradenton, have recently changed their look. Remodeling of stores from Sarasota to Tampa Bay should be complete before November.
	[Bradenton Herald]

ADVERTISEMENT [Bradenton Herald] Connie Sanders, left, and Dani Palmer check out the items on the clearance racks early Monday at the Bealls Outlet store on SR 70 near I-75 in Bradenton. The chain has used an "opportunistic buying" formula on both its stock and its real estate.

BRADENTON - BeallsOutlets are supposed to look bare bones, a role that helps cement the chain's bargain image. But many stores have deteriorated enough to overplay the part.

So the Bradenton-based chain of 473 stores spread over 14 Sunbelt states is getting the first overhaul in its 20 year-history.

"We had been growing sales for years simply by adding new categories of merchandise, which resulted in a lot of clutter," said Conrad Szymanski, who took over as president of the outlet division a year ago. "So we're taking steps to enhance the customer shopping experience."

Beall's Inc., the family-owned parent that also operates the 82-store Beall's department store chain, had to do something.

Sales at Bealls Outlets open more than a year slumped 5 percent in the fiscal year that ended July 31. The outlet chain's revenue have been stuck at about $500-million for three consecutive years. Because the chain's "opportunistic buying" formula also applied to its leased real estate strategy, many stores are too small. About a quarter are abandoned drugstores, typically former Eckerd stores, while a new Bealls Outlet needs twice that much space. Twenty-eight unprofitable stores were shuttered earlier this year.

Now shelves are being decluttered of a lot of stuff purchased only because the chain got a deal on it. The layout has been reorganized to spotlight bargain-priced apparel, accessories and kids clothing. While cosmetic changes such as new paint jobs, signs, better lighting and new bathrooms where needed are part of the program, so is loosening the "follow the dots" rules governing price cuts that are followed by cult-like Bealls Outlets regulars.

The old dots discounts schedule of 20, 40, 60 and 95 percent off merchandise that doesn't sell in progressive four week sales periods has been sweetened to 30, 50, 70 and 95 percent. The chain is considering moving the dots, which changes the discounts, every two or three weeks instead of four to keep poorly selling goods from piling up.

"By the time the dots get to 95 percent, flea market vendors are in here filling baskets," said Steve Short, a district manager.

There are no plans to alter the 15 percent discount for club members over 50 on Mondays and younger than 50 on Fridays.

The chain also committed to a selection of 100 compelling special purchase items (as opposed to some merchant's unsold leftovers) that changes every three weeks.

Many outlet regulars drive past smaller, older stores they consider too densely packed with merchandise that sometimes litters the floor. So Bealls will staff up to keep the stock presentable.

The chain is a so-called pipe merchant, meaning it sells mainly apparel hung from long pipe racks rather than on tables or more fashionable fixtures. It's priced to fit in the lower end of the market between Marshalls and Big Lots. The chain deals mostly in manufacturers' production overruns bought by the truckful or warehouseful.

Already, Szymanski said, his buyers' phones are ringing with manufacturers peddling goods that had been destined for other retailers this Christmas holiday season. Many big chains are canceling orders as forecasts stack up for a lean holiday for retailers.

Regulars are drawn by the prospect of spotting familiar brands like Liz Claiborne, Sag Harbor or Koret hidden among the no-name brands or those made to sell at higher prices at Kohl's, Target, American Eagle or Wal-Mart. Known as Bealls Outlets in most states, the chain is called Burke's Outlets in Texas where an unrelated company, also known as Beall's has operated for years.

Bealls Outlets spends about $50,000 remodeling each store, excluding its own labor. But in the few stores where the new look was tested, sales rose 7 percent on a week-to-week basis.

The 64 Beall's Outlet stores from Sarasota north to the Tampa Bay area will be completed by the end of October. Depending on the outcome, the company is poised to convert the rest of the chain in two years.

At one of the first stores in Bradenton to get the fix, customers noticed.

"It's brighter and easier to find things, plus a lot of the merchandise looks better," said Susan Spalding, a Toronto retiree who spends winters in Tampa Bay. "I figured they just got a new store manager."

Mark Albright can be reached at albright@sptimes.com or (727) 893-8252.

Less clutter, deeper discounts

The Bradenton-based chain of 473 Bealls Outlets gets its first overhaul in its 20 year-history by:

- Loosening its "follow the dots" discounting rules by cutting prices faster, deeper.

- Decluttering shelves of stuff purchased only because the chain got a deal on it.

- Reorganizing the layout to spotlight bargain-priced apparel, accessories and kids clothing.

- Sprucing up stores with new paint, signs, better lighting and new bathrooms (where needed).

[Last modified October 22, 2007, 22:46:27]