What: Regional department store company Belk is launching a new advertising platform, Belk Media Network, to offer retail media services for its partners.

Why it is important: As retail media networks become a critical revenue stream for retailers, Belk's entry into this space reflects a broader trend among U.S. retailers to capitalize on advertising opportunities within their platforms.

Belk, a regional department store chain with about 300 locations across 16 Southern states, is launching an advertising arm named Belk Media Network this fall. Neal Sheridan, formerly with Macy's, has been appointed to lead this new division, aiming to integrate it with Belk's IT, e-commerce, merchant, and marketing teams. Despite the retail media market being dominated by Amazon, which captures 74% of the USD 140 billion spent, Belk is attempting to claim its share. However, retail media experts express concerns about Belk's competitiveness due to its regional focus and the saturation of retail media networks, which now number over 200. The initiative is part of a broader strategy under Belk’s private equity owner, Sycamore, which took over the company in 2015 and has significantly cut its debt. Despite the competitive landscape, experts believe Belk could attract brands that target the Southern U.S. market specifically.

US department store chain Belk enters retail media