Proffitt's
| Company type | Public (until 1998) |
|---|---|
| Industry | Retail (department stores) |
| Founded | 1919 in Alcoa, Tennessee, United States |
| Founder | David W. Proffitt, James Ellis |
| Defunct | 2006 |
| Fate | Acquired by Belk; stores rebranded as Belk |
| Headquarters | Alcoa, Tennessee , United States |
Area served | Southeastern United States |
Key people | R. Brad Martin (purchaser in 1984) |
| Products | Department store merchandise |
Proffitt’s was a U.S.-based department store chain established in 1919 in Alcoa, Tennessee by David W. Proffitt alongside James Ellis. The company experienced steady growth and eventually went public, acquiring multiple regional retail chains such as McRae’s, Parks-Belk, Parisian, Younkers, Herberger’s, and Carson Pirie Scott. In 1998, Proffitt’s merged with Saks Fifth Avenue and became part of Saks, Inc.. Saks divested the Proffitt’s and McRae’s divisions to Belk in 2005, which rebranded these stores in 2006. At its height, Proffitt’s operated numerous locations throughout the southeastern United States.
Early Years
In 1919, jeweler David W. Proffitt and James Ellis launched the Ellis-Proffitt Co. on Main Street in downtown Maryville, Tennessee. The inaugural store featured seven departments including ladies’ ready-to-wear, accessories for women, millinery, men’s footwear, dry goods, and a bargain basement. Due to health reasons, Ellis sold his stake to Proffitt in 1921. The business expanded with a second store opening in Athens, Tennessee in 1936. During the 1960s, the Maryville location moved from downtown to Midland Plaza in Alcoa, Tennessee.
By 1982, the store relocated once more to Foothills Mall in Maryville and eventually grew to occupy two mall storefronts after Hess's exited the market. These two outlets remained operational through the Belk acquisition—one dedicated to women’s merchandise and the other catering to men’s, children’s apparel, and home goods. A warehouse and distribution facility was established in Maryville in 1970. Expansion continued with a Knoxville store opening at West Town Mall in 1972, followed by an Oak Ridge location in 1974. A second Knoxville store launched at East Towne Mall (currently Knoxville Center) in 1984. At that time, the company operated four stores with annual revenues reaching $40 million (~$Template:Format price adjusted for inflation).
For over six decades, Proffitt’s remained family-owned until 1984 when RBM Acquisition Co., led by R. Brad Martin, purchased the company.
Going public
Proffitt's Inc. made its stock market debut on July 3, 1987, listing on the NASDAQ exchange under the ticker PRFT. That same year, the West Town Mall store in Knoxville underwent an expansion to 122,000 square feet (11,300 m2), becoming the chain's largest retail location. In 1986, Proffitt's acquired Loveman's Department Store, based in Chattanooga, which added four stores in Chattanooga and introduced the company’s first outlet beyond Tennessee in Dalton, Georgia.
By 1989, Proffitt's inaugurated a new 80,000 square feet (7,000 m2) store at Biltmore Square Mall in Asheville, North Carolina, increasing its total number of stores to eleven. The period between 1992 and 1993 was marked by significant expansion through acquisitions, positioning Proffitt's as one of the fastest-growing retail chains nationwide. During this time, the company acquired 18 Hess's locations spread across Tennessee, Virginia, Kentucky, and Georgia. Several of these stores had previously operated as Miller's of Tennessee. This acquisition extended Proffitt’s footprint to cities including Rome, Georgia, Elizabethtown and Ashland, Kentucky, as well as Bristol, Virginia, and both Kingsport and Johnson City, Tennessee. In the fall of 1992, just prior to finalizing the Hess’s deal, Proffitt’s opened a new store at The Mall at Johnson City, marking its entrance into the Tri-Cities area. Following the Hess’s acquisition, a dual-store format was implemented within that mall similar to the arrangement at Foothills Mall in Maryville. Once the Hess’s location in Johnson City was vacated and refurbished, it became home to the Men's and Home departments, while Women’s and Children’s departments remained in the newly built Proffitt’s store.
Acquisitions of McRae's and Parks-Belk
In 1994, Proffitt's expanded further by acquiring the Jackson, Mississippi–based chain McRae's. Unlike previous acquisitions, McRae’s continued to operate independently under its original brand name. The following year, Proffitt's purchased Parks-Belk, an independently owned affiliate of Belk, Inc., headquartered in Charlotte, North Carolina. This acquisition introduced Proffitt’s presence in Greeneville, Tennessee for the first time and added an additional store in each mall located in Kingsport and Johnson City. Although a Parks-Belk store in Morristown, Tennessee was included in the transaction, it was closed rather than converted into a Proffitt’s location. In Johnson City, where Proffitt’s already operated a dual-store concept within the mall, this acquisition resulted in three stores under its control there. The former Hess’s building—once housing the Men's and Home departments—was vacated and these departments were relocated to the former Belk site along with Children’s merchandise. This relocation established the company’s largest Men’s store while allowing Women’s to occupy its own dedicated space. Meanwhile, in Kingsport’s Fort Henry Mall, the former Hess store was repurposed as the largest Home Store within Proffitt’s network; all other departments remained at the former Parks-Belk location. Subsequently, Proffitt’s expanded by opening stores in Spartanburg, South Carolina, Morgantown, and Parkersburg, West Virginia. The company also constructed a new store at College Square Mall in Morristown, Tennessee.
Acquisitions of Parisian, Younkers, Herberger's, Carson Pirie Scott, and Dillard's Stores
In 1996, the Birmingham, Alabama-based department store chain Parisian along with Younkers from Des Moines, Iowa, were acquired and continued to operate under their original names and management structures. The following year, 1997, saw the purchase of Herberger's, which also retained its brand identity. That same year marked the company's transition from the NASDAQ to the New York Stock Exchange, adopting the ticker symbol PFT. In 1998, the company expanded by acquiring the Carson Pirie Scott chain, which included Boston Store and Bergner's, all of which remained under their established names. Later that year, North Carolina-based Brody's was acquired and subsequently rebranded as Proffitt's stores. Additionally, Proffitt's purchased 15 stores from Dillard's following its acquisition of Mercantile Stores. Among these were five former Castner Knott locations in Nashville, Tennessee, which were rebranded as Proffitt's but later sold in 2001 to May Department Stores; these operated as Hecht's until 2006 before becoming Macy's. The Brody's locations were divested to Belk in 2004. That same year, Proffitt's inaugurated a new store at Riverchase Galleria in Hoover, Alabama, occupying a space previously held by Macy's—now a Von Maur outlet. Ultimately, on March 6, 2006, the retail brands Carson Pirie Scott, Bergner's, Boston Store, Herberger's, and Younkers were sold to Bon-Ton Stores.
Merger with Saks Fifth Avenue
The most significant rebranding occurred in late 1998 when Proffitt's acquired Saks Holdings Inc., the parent company of luxury retailer Saks Fifth Avenue. Following the completion of this acquisition, the company adopted the name Saks, Inc. and changed its NYSE ticker symbol to SKS.
Sale to Belk
The McRae's division was eventually integrated into Proffitt's administrative offices located in Alcoa, Tennessee; however, McRae's continued operating under its own name for a time. In 2005, Belk purchased both Proffitt’s and McRae’s stores, signaling the end of these two established retail brands. By March 8, 2006, all McRae’s and Proffitt’s locations had been rebranded as Belk stores, concluding the legacy of these prominent southern retailers. Two exceptions were McRae’s stores in Tuscaloosa and Gadsden, Alabama; these remained as Parisian outlets until October 2, 2006, when the Parisian division was sold to Belk as well. Subsequently, these two stores were also converted into Belk locations nearly one year after the acquisition.