Ian Ritter is national online editor for GlobeSt.com/RETAIL.

BIRMINGHAM, AL-In a highly anticipated deal in the retail industry, Charlotte, NC-based department store operator Belk Inc. is acquiring Saks Inc.'s Saks Department Store Group for $622 million. The deal will give Belk 25 McRae's and 22 Proffitt's stores located throughout 11 Southern states. Company executives expect the deal to close some time this quarter.

Saks executives also say they are exploring the sale of their northern department store division, which includes 143 units in 12 Midwestern states under the Bergner's, Boston Store, Carson Pirie Scott, Herberger's and Younkers banners. The company is also exploring the sale of its 43-unit Club Libby Lu, a specialty, "tween" apparel chain.

Locally based Saks Inc. is keeping its 38-store Parisian chain, which operates units mostly in the South. The company is also holding on to four McRae's in Alabama. There are no plans to sell the upscale Saks Fifth Avenue chain, which operates 57 department stores and 52 outlets, executives say.