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Dive Brief:
- Belk and specialty home retailer Conn’s on Wednesday announced they’ve formed a partnership to pilot shop-in-shops in up to 20 of Belk's department store locations. The new store format, which will be between 10,000 and 25,000 square feet, will launch under a new brand name to be announced at a later date.
- Beginning this summer, consumers can shop Conn’s products — including in the furniture, home electronics and appliance categories — on Belk’s website and in select stores, according to a company press release.
- Through the partnership, Belk customers will gain access to Conn’s white-glove, next-day delivery and in-house repair service capabilities.
Dive Insight:
To help fill out its assortment, Belk is partnering with specialty home retailer Conn’s.
“This partnership with Conn’s will allow us to offer customers many products we don’t currently sell, making it easier for them to get everything they need for their homes in one convenient place,” Don Hendricks, Belk’s interim CEO, said in a statement.
The partnership also benefits Conn’s by placing its products in front of a new set of customers through the Belk shop-in-shops, further expanding its reach. It’s a strategy other retailers have adopted in recent months, including Petco’s in-store concept at Lowe’s and Casper’s partnership with Bed Bath & Beyond.
But the partnership also comes as the overall home segment of retail faces declining demand. At the onset of the pandemic, the category received a boost as consumers invested more into the spaces they were spending the majority of their time. But as consumers have begun to feel more comfortable leaving their homes, spending shifted to other areas including dining out.
Conn’s on Wednesday reported first quarter net sales fell 6.5% to $272.3 million, while comparable sales declined 9.5%. The company’s retail segment operating loss was $2.1 million compared to a profit of $15.7 million in the year-ago period. Net income also fell, by 86.3%, to $6.2 million from $45.4 million a year ago.
via https://www.aiupnow.com
Caroline Jansen, Khareem Sudlow
