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Hudson's Bay Company

Tuscani01 said:
You don't have to go through the store for Ikea pickups. It's by the entrance/exit... and right now, you don't even need to go in. They bring it to your car.
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Yep. Though the main entrance is set up to lead customers up that escalator and into the labyrinth of showrooms, you can still go straight to the customer service area, checkouts, and cafe on the ground level.
 
www.retail-insider.com

Brief: Hudson's Bay Montreal Downsizing, McArthurGlen Outlets Add Luxury Retailers

Other news: Richard Mille/Audemars boutiques close after licensee's death, HBC innovates in sanitation, ECCO pop-up at Toronto's Stackt Market.
www.retail-insider.com www.retail-insider.com


Hudson’s Bay Flagship Store in Montreal to be Downsized

The flagship Hudson’s Bay department store at 585 Ste-Catherine Street in downtown Montreal is expected to be downsized amid a sale of the iconic and historic 655,000-square-foot building. That’s according to a French language report last week in La Presse.

The article states that Hudson’s Bay will occupy three retail levels spanning 250,000 square feet on the ground floor, second level, and basement. The new owner will have the option of converting levels three through eight of the building into loft-like office space — something tech firms were keen to secure prior to COVID-19. A building application proposal is also in place for zoning approval to add a 300-foot tower at the back of the store, either for office or residential uses.

The downtown Montreal Bay building opened in 1891 as a Morgan’s store, with an eight level expansion being added in 1923. A rather ugly extension was added at the back end of the store facing Boulevard de Maisonneuve in 1964. In 2016, Hudson’s Bay announced that Saks Fifth Avenue would open a 200,000 square foot store in the back-end extension though plans were subsequently shelved.

CBRE is said to be selling the Montreal Bay building as well as the Vancouver Hudson’s Bay flagship store at 674 Granville Street.
 
AlbertC said:
www.retail-insider.com

Brief: Hudson's Bay Montreal Downsizing, McArthurGlen Outlets Add Luxury Retailers

Other news: Richard Mille/Audemars boutiques close after licensee's death, HBC innovates in sanitation, ECCO pop-up at Toronto's Stackt Market.
www.retail-insider.com www.retail-insider.com


Hudson’s Bay Flagship Store in Montreal to be Downsized

The flagship Hudson’s Bay department store at 585 Ste-Catherine Street in downtown Montreal is expected to be downsized amid a sale of the iconic and historic 655,000-square-foot building. That’s according to a French language report last week in La Presse.

The article states that Hudson’s Bay will occupy three retail levels spanning 250,000 square feet on the ground floor, second level, and basement. The new owner will have the option of converting levels three through eight of the building into loft-like office space — something tech firms were keen to secure prior to COVID-19. A building application proposal is also in place for zoning approval to add a 300-foot tower at the back of the store, either for office or residential uses.

The downtown Montreal Bay building opened in 1891 as a Morgan’s store, with an eight level expansion being added in 1923. A rather ugly extension was added at the back end of the store facing Boulevard de Maisonneuve in 1964. In 2016, Hudson’s Bay announced that Saks Fifth Avenue would open a 200,000 square foot store in the back-end extension though plans were subsequently shelved.

CBRE is said to be selling the Montreal Bay building as well as the Vancouver Hudson’s Bay flagship store at 674 Granville Street.
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It's not benign neglect; it's wilful degradation of a business and brand.

It's also, simply, the wrong strategy.

The weakness in the 'The Bay' is not its flagship stores, most of which are highly profitable and have very solid sales per square foot.

It's the also-ran suburban and small town stores that offer little in the way of shopping experience or merchandise assortment that if not actively 'bleeding red ink' certainly aren't putting down much 'black ink' either.

That latter group of stores, with some exceptions is relatively easy to replace with online shopping and/or downsized stores that act as mini-showcases, and brand awareness with limited on-site merch.

Where the flagships have strong potential as the places that drive both in-person and online sales.

But they need the square footage to provide the depth of selection, the ambiance and the supplementary services that build positive brand reputation.
 
Looks to me like they've entered the shrinking selection/sales death spiral:

So if sales aren't doing well at a store, there's inevitably talk about improving metrics per square footage. An often-used tactic is to pare down selection to "focus on fundamentals" or something like that. Often the remaining items aren't necessarily the best-sellers but the ones with the highest margin or which are the best fit for what management has decided is their target demographic. But some of those items drove traffic to the store, so the people who went there for them don't bother coming back. So sales fall further, and the cycle repeats until there's nothing left but a failing marketing strategy.
 
Bruno Republic said:
Looks to me like they've entered the shrinking selection/sales death spiral:

So if sales aren't doing well at a store, there's inevitably talk about improving metrics per square footage. An often-used tactic is to pare down selection to "focus on fundamentals" or something like that. Often the remaining items aren't necessarily the best-sellers but the ones with the highest margin or which are the best fit for what management has decided is their target demographic. But some of those items drove traffic to the store, so the people who went there for them don't bother coming back. So sales fall further, and the cycle repeats until there's nothing left but a failing marketing strategy.
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I fear that's the case too.

I wish they would just cut the stores that don't make sense within a 20-year horizon and invest in the rest to make the brand better.

However, while the former is likely, there is little sign of the latter at this point.
 
officedweller said:
They want to do the same with the Vancouver store - turn the top into a few floors of offices.
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Offices? Who sees themselves working in an office before end of 2021?

HBC needs to abandon all but its two or three Flagship stores, and move the rest of the business to online.

Of course a big problem is people like me aren’t buying anything.
 
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Northern Light said:
I wish they would just cut the stores that don't make sense within a 20-year horizon and invest in the rest to make the brand better.
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The caveat here is that they are probably not paying that much in some of their suburban locations which probably highly depend on Hudson Bay traffic as their anchor tenant.

Woodbine Mall comes to mind. That place would be the first location to downsize from if you were to start selecting stores, but I bet that that the lease at Yonge & Bloor costs way more on their balance sheet.
 
WislaHD said:
The caveat here is that they are probably not paying that much in some of their suburban locations which probably highly depend on Hudson Bay traffic as their anchor tenant.

Woodbine Mall comes to mind. That place would be the first location to downsize from if you were to start selecting stores, but I bet that that the lease at Yonge & Bloor costs way more on their balance sheet.
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Ironically, the Yonge and Bloor store is probably just as lightly trafficked as the Woodbine Mall Store and will likely close in the near future. It is in a high end neighbourhood but the store has not been updated since the 1980s.

It is like walking into some of the low end stores (Eglinton Square, Woodbine Mall, etc) while being in a high end neighbourhood.
 
Richard White said:
Ironically, the Yonge and Bloor store is probably just as lightly trafficked as the Woodbine Mall Store and will likely close in the near future. It is in a high end neighbourhood but the store has not been updated since the 1980s.

It is like walking into some of the low end stores (Eglinton Square, Woodbine Mall, etc) while being in a high end neighbourhood.
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I wonder if there are big plans for that complex which is why they have been reluctant to invest in the store.
 
WislaHD said:
I wonder if there are big plans for that complex which is why they have been reluctant to invest in the store.
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There was something large being looked at for the Hudson's Bay Centre on Bloor; but I'm not sure of the status.........

The proposal never came forward publicly; and my contact isn't sure of the status, hasn't heard much about it in the last year.

HBC had looked at using the footprint for Sak's originally before putting it on Queen. Which I think would have been the far better call.

Beyond that Bloor does not turn great numbers; I'm uncertain what the lease terms are, but I'm thinking they must be pretty favourable to HBC;

Queen and Yorkdale are the big money makers in the City. While Scarborough Town does quite respectably.
 
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