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Hudson's Bay Company

More tumult:
Competitor offers to buy Hudson’s Bay’s German assets
Hudson’s Bay Co.’s principal German competitor has made an offer to buy its German business, as well as other real estate assets.
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https://www.thestar.com/business/2017/11/01/competitor-offers-to-buy-hudsons-bays-german-assets.html

Trading of Hudson’s Bay shares halted on Toronto Stock Exchange
The halt follows a tumultuous couple of months for the retailer, with the company selling off its storied Lord & Taylor property in the heart of New York City last month.
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https://www.thestar.com/business/pe...-shares-halted-on-toronto-stock-exchange.html

Analysts do not see a bright Dutch future for Hudson’s Bay
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https://www.retaildetail.eu/en/news/general/analysts-do-not-see-bright-dutch-future-hudson’s-bay
 
What HBC needs to do is to stop focusing on their unnecessary overseas expansion, and put that money into revamping their e-commerce portals and in-store shopping experience. Hudson's Bay itself has been neglected itself for far too long, in favor of Saks and Lord & Taylor. I hate it when analysts lazily point to Amazon and blame it on them for another retail chain's struggles. Yes Amazon is responsible for part of it, but it's not the whole story.

They have the ability to change this, but the question is will they do it. Sounds like a familiar situation doesnt it?
 
Amare said:
[...] put that money into revamping their e-commerce portals [...]
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Sure. But I must say they have been doing quite well with investments to date. Twice recently I've ordered items on thebay.com on a Sunday evening, not paid for any special delivery (just the standard free delivery one gets if one's order total exceeds a certain amount), and the items have arrived Monday morning. Granted they are being delivered to Toronto - that speed is probably not replicated if one is placing an order from Brandon, Manitoba.

Amare said:
I hate it when analysts lazily point to Amazon and blame it on them for another retail chain's struggles. Yes Amazon is responsible for part of it, but it's not the whole story.
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This.
 
Although I agree with you that The Bay's website works, the real question one has to ask themselves is: "Can they do better?". For me when I take a look at their site, it looks woefully out of date when you compare it to other retailers such as Nordstrom, Nordstrom Rack, and even Saks/Lord & Taylor. Even though their website works, i definitely don't have a pleasant time navigating it.
 
Amare said:
Although I agree with you that The Bay's website works, the real question one has to ask themselves is: "Can they do better?". For me when I take a look at their site, it looks woefully out of date when you compare it to other retailers such as Nordstrom, Nordstrom Rack, and even Saks/Lord & Taylor. Even though their website works, i definitely don't have a pleasant time navigating it.
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It works maybe 80% off the time. It was down over the Black Friday/Cyber Monday weekend (which probably cost them a pretty penny) and I've found their checkout pages are sometimes wonky (not loading, calculating discounts incorrectly or just plain slow). Their filter drop downs are also annoying as f*ck (Saks handles that better).
 
bcx said:
It works maybe 80% off the time. It was down over the Black Friday/Cyber Monday weekend (which probably cost them a pretty penny) and I've found their checkout pages are sometimes wonky (not loading, calculating discounts incorrectly or just plain slow). Their filter drop downs are also annoying as f*ck (Saks handles that better).
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What HBC doesn't offer, inexplicably, is free shipping to store. I have a hard-to-find shoe size, but sometimes they have a good sale on Clarks. They have in-store pick-up for items that they have in stock, but not things that have to be ordered in, which in that case, needs to be delivered to home, with a shipping charge. I love shopping in-store, but the website isn't great. But if I did order something online, I would be happy to go to the store to pick it up at my convenience, and I would also probably browse for other things too.
 
Skeezix said:
Sure. But I must say they have been doing quite well with investments to date. Twice recently I've ordered items on thebay.com on a Sunday evening, not paid for any special delivery (just the standard free delivery one gets if one's order total exceeds a certain amount), and the items have arrived Monday morning. Granted they are being delivered to Toronto - that speed is probably not replicated if one is placing an order from Brandon, Manitoba.
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Indeed, they ship out much faster than even Amazon. Delivery speed can be another matter as they are working with Canada Post. A couple of weeks ago, I ordered a Christmas tree that was shipped from Mississauga, ended up in Scarborough, then in Markham, then back in Mississauga and finally here at Bay and Bloor - it took almost a week.
 
Definitely believing more in Land and Building's assessment with Hudson Bay's continued slump - Hudson's Bay needs to start spreading into the business of REIT as a second stable platform of operations- or else risk going down if all eggs are in the retail basket.

Don't quite agree with the intents of Land and Building (selling property to allow the company to go private or the sole focus on ensuring the maximization of shareholder value), but there is opportunity in reassessing the nature of Hudson's Bay.

I would prefer if Hudson's Bay didn't sell its most valuable properties to fund operations a la Sears, but rather focus on managing and attracting tenants to underutilized spaces. They already have some highly ideal but underused stores- now they need to make use of those spaces.

Land and Buildings reiterates Hudson's Bay real estate worth more
https://www.reuters.com/article/hud...sons-bay-real-estate-worth-more-idUSL3N1OC49P

Dear Hudson’s Bay Shareholders

As you are likely aware, Land & Buildings reached an agreement with Hudson’s Bay last month in furtherance of our continued collaboration with the Board to ensure that shareholder value is maximized. In that regard, we are writing to update shareholders on our current views and expectations for unlocking the value of our respective investments in the Company. We note that Hudson’s Bay world class real estate is valued at C$31 per share1 – as the Company disclosed in April – yet it is trading at C$10 per share. HBC’s third quarter earnings disappointment, which management admitted, “did not meet our expectations,” gives us more reason to view and value HBC as a real estate company.

High quality retail real estate is in high demand, most recently evidenced by Unibail-Rodamco’s purchase announced today of Class A US/Europe mall landlord Westfield Corporation for $25 billion, or a ~4% cap rate. Hudson’s Bay’s real estate value disclosed by management, which is triple the current share price, is based on a 5% blended cap rate.

Hudson’s Bay could be poised to generate nearly C$13 of net cash proceeds from completed and marketed real estate and capital transactions, giving HBC a cash hoard of over C$3 billion, which would facilitate a go-private transaction. Specifically, we would note that:
  • The Company sold the Lord & Taylor flagship store for $850 million, net C$2.40 per share in cash, or 30% more than its appraised value.
  • HBC repurposed the Lord and Taylor flagship store to its highest and best use with WeWork Companies (“WeWork”) slated to occupy a majority of the building.
  • The Company has listed for sale the Vancouver store for C$900 million, which if sold could net C$2.50 per share in cash.
  • The Hudson’s Bay non-management Board members we believe are evaluating a sale of the European business, which could net C$5.20 per share in cash.
  • The Rhone convertible preferred issuance generated C$2.70 per share in cash.
  • Hudson’s Bay has eliminated shareholder voting agreements as part of the Rhône Capital transactions.
  • Management’s potential plans with respect to a go-private, as reported over the summer, were likely thwarted just months ago by the tightening of the credit markets after Toys “R” Us announced its bankruptcy.
  • Rhône Capital’s Steven Langman and WeWork’s Eric Gross are now on the Board of HBC. What we see as the value opportunity deal they made with HBC, given their track records as value buyers, suggests they see a clear path to maximizing the value of HBC.
We look forward to working collaboratively with the Board and management of HBC and will closely monitor developments at the Company with our respective best interests as shareholders as paramount.

Sincerely,

Jonathan Litt

Founder & CIO
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https://www.businesswire.com/news/home/20171212005771/en/Land-Buildings-Issues-Letter-Hudson’s-Bay-Shareholders

Downtown department stores not just for shopping
Department stores occupy desirable real estate, primed for a return to being cornerstones. Yet this time their multiple use isn't just about a store's various departments, but also about other attractions and businesses attaching themselves to the space.
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"The productivity of a department store – actually, any retailer – really goes down as you go up," Mr. Sonshine said in the interview. "So that the sales per square foot on the ground floor might be five or six times what they are on the sixth floor."
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The WeWork deal, brokered by Richard Baker, the interim CEO of Hudson's Bay, will turn the top floors of the stores into leased office space – and thus become a source of high rental income for the retailer.

"I think it's brilliant, and I think it's scalable. The net result is that his store becomes far more efficient," Mr. Sonshine said. Yet, exploring multiple options, Hudson's Bay and RioCan are also considering the possibility of selling the Vancouver property, although Hudson's Bay would still operate in the building.
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Kitty corner from Hudson's Bay, Nordstrom's downtown Vancouver store (originally the modernist Eatons store) has already long set an example with its mixed-use upper floors, housing office tenants such as Microsoft and law firm Miller Thomson.

Meanwhile, RioCan has let it be widely known that it is looking to renovate many of its retail properties, adding residential units to shopping sites, to the extent that RioCan would like to see revenue from residential properties climb to about 10 per cent of annual revenue.
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https://www.theglobeandmail.com/rep...stores-not-just-for-shopping/article37099521/
 
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What on earth sold HBC on the idea that expanding into the Netherlands - or Europe at all - was a remotely good idea?! Even as someone without much knowledge about retailing, that strikes me as a risky move with not much good to come of it even in a best-case scenario. I'm going to be really disappointed if we lose a 300-something-year-old retailer that also had so much potential to be a great retailer.
 
The Foodwares across from Pusateri's at Saks has consolidated with the other Foodwares in the west end of the Bay. The space is now boarded up for renovation.
 
deerparker said:
The Foodwares across from Pusateri's at Saks has consolidated with the other Foodwares in the west end of the Bay. The space is now boarded up for renovation.
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This comes as no surprise. Hard to make a go of it selling overpriced, mediocre sandwiches and the like with Pusateri's now located across the hall from you. The Foodwares in the west end was always better food-wise.
 
Beauty Underground, including The Ten Spot, is now closed and is clearing out of its concourse level location.
 
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