[Northern Light]

The churn of HBC CEOs continues. Helena Foulkes is out after only 2 years.

CEO Helena Foulkes out at Hudson's Bay Co, chairman Richard Baker to take over

Executive chairman Richard Baker's influence over Hudson's Bay Co. is about to get another big boost as Canada's oldest retailer closes a turbulent chapter in its nearly 350 years of existence.

www.ctvnews.ca

 

[AlbertC]

Creditor proposing for a merger between Neiman Marcus and Saks (HBC):

Hedge fund pushes for Neiman Marcus-Saks Fifth Avenue merger

May 13, 2020

Dive Brief:

• In a letter to attorneys of independent managers of Neiman Marcus Group, creditor Mudrick Capital Management is pushing the retailer to "test the waters" of a sale, arguing it would be "substantially more beneficial to Neiman and all of its stakeholders" than the agreements outlined in the retailer's Chapter 11 filing.
• Noting previous interest from Saks Fifth Avenue, Mudrick said that "Neiman and Saks operate highly complementary business models with significant overlap among customers, vendors, and geographic locations." Saks owner HBC in 2017 pursued an acquisition of Neiman Marcus but reportedly balked at the retailer's debt. Requests for comment from Saks and HBC weren't immediately returned. Neiman Marcus declined to comment to Retail Dive on the letter, which was first reported by Reuters.
• Mudrick said it "estimates $2.8 billion to $4.7 billion of potential value creation" from that combination, and suggested using the bankruptcy process to close 22 full-line Neiman stores within 15 miles of a Saks. Another seven Neiman stores, farther from a Saks but in the same metropolitan area, "provide additional opportunities," according to the letter, which was emailed to Retail Dive.

Hedge fund pushes for Neiman Marcus-Saks Fifth Avenue merger

Mudrick Capital Management envisions downsizing Neiman Marcus by nearly 30 locations and using the bankruptcy process to get the job done.

www.retaildive.com

 

[bAuHaUs]

Hudson's Bay to exit downtown Edmonton at City Centre

Hudson’s Bay Exiting Downtown Edmonton After 207 Years

The loss of the last department store in downtown Edmonton is a blow to the city’s core which saw Holt Renfrew exit earlier this year, as well as Woodward’s and Eaton’s in years past.

www.retail-insider.com

 

[Northern Light]

Hudson's Bay to exit downtown Edmonton at City Centre

Hudson’s Bay Exiting Downtown Edmonton After 207 Years

The loss of the last department store in downtown Edmonton is a blow to the city’s core which saw Holt Renfrew exit earlier this year, as well as Woodward’s and Eaton’s in years past.

www.retail-insider.com

A couple of thoughts.

In general I disagree with exiting downtowns.

Not just because I fancy them as an urban-enthusiast.

But because I believe the future of most retail is 'experiential'.

E-commerce is replacing routine purchases.

Going out shopping will be more about the experience, and will often serve as a living catalogue so to speak.

A chance to become inspired, and maybe make that purchase later online and have it delivered.

It's about furniture actually showcased in room settings so you can see how it will look in a way online doesn't yet achieve.

It's about trying on clothes or seeing them on mannequins w/your body type.........or paired with accessories you might want.

It's about the restaurant, the personal service and so on.

In respect of this, centrally located, architecturally outstanding stores are more the future than bland suburban malls.

That said............Edmonton's downtown store in its current iteration, is a dumpster fire. Ugly top to bottom.

Still, I would have looked to replace it, and close all but the most successful suburban store.

****

I gather downtown Winnipeg maybe next on the chopping block, which is a shame, because that building is a beauty.

It just needs some TLC and for the HBC to shut down 1 of the 2 remaining suburban stores to consolidate those sales downtown.

****

On a related note, the article discusses a strategy going forward that may see 'The Bay' become concession-oriented, in which most or all departments are contracted out to 3rd party vendors.

I again disagree.

I think this makes sense on a limited basis for very high end brands.

But overall, I think any hope a department store has of success is based on the overall shopping experience, cohesive curation of stock, consistent service, pricing and return policies etc.

When you start messing about with 70-100% subcontracting you can't ensure that consistency and cohesiveness or that the overall product assortment makes sense.

So I hope they don't go that route.........but we shall see.

 

[Regigate]

****

I gather downtown Winnipeg maybe next on the chopping block, which is a shame, because that building is a beauty.

It just needs some TLC and for the HBC to shut down 1 of the 2 remaining suburban stores to consolidate those sales downtown.

****

The Winnipeg store was also appraised at, or below, zero due to the huge cost to bring the building up to code, and/or the cost to re-develop it into something useful. It is a beautiful building, and the cost to HBC to continue to use the building for its department store use would surely be less than a full re-development, but it's tough to say whether the cost-benefit makes sense on that one for HBC.

Part of the problem is that Winnipeg is not yet a city with a vibrant downtown. It's on its way, but for the time being, the HBC store is still kind of in a dead-zone for pedestrian traffic, so unlike an Eaton Centre location where you naturally have people dropping in to look at the "live catalogue", I recall visiting the downtown Winnipeg store and not seeing another human for what felt like my entire visit.

Winnipeg is also a city without suburban HBC stores - the only other HBC stores being at CF Polo Park and St. Vital Mall, both of which have always seemed relatively busy and successful stores due to their being an anchor tenant.

 

[AlbertC]

Article regarding Winnipeg's downtown store:

Downtown Bay store could be a casualty of COVID-19

MARTIN CASH MAY 15, 2020

May 2020: Downtown Bay store could be a casualty of COVID-19

When Hudson’s Bay Company started re-opening its stores across the country last week, the Manitoba locations were first, not because there is more pent up demand here but because provincial regulations made it possible. On Thursday, stores in the rest of Western Canada and Nova Scotia were opened.

www.winnipegfreepress.com

Outline - Read & annotate without distractions

Outline is a free service for reading and annotating news articles. We remove the clutter so you can analyze and comment on the content.

outline.com

 

[syn]

A couple of thoughts.

In general I disagree with exiting downtowns.

Not just because I fancy them as an urban-enthusiast.

But because I believe the future of most retail is 'experiential'.

E-commerce is replacing routine purchases.

Going out shopping will be more about the experience, and will often serve as a living catalogue so to speak.

A chance to become inspired, and maybe make that purchase later online and have it delivered.

Its about furniture actually showcased in room settings so you can see how it will look in a way online doesn't yet achieve.

Its about trying on clothes or seeing them on mannequins w/your body type.........or paired with accessories you might want.

Its about the restaurant, the personal service and so on.

In respect of this, centrally located, architecturally outstanding stores are more the future than bland suburban malls.

That said............Edmonton's downtown store in its current iteration, is a dumpster fire. Ugly top to bottom.

Still, I would have looked to replace it, and close all but the most successful suburban store.

****

I gather downtown Winnipeg maybe next on the chopping block, which is a shame, because that building is a beauty.

It just needs some TLC and for the HBC to shut down 1 of the 2 remaining suburban stores to consolidate those sales downtown.

****

On a related note, the article discusses a strategy going forward that may see 'The Bay' become concession-oriented, in which most or all departments are contracted out to 3rd party vendors.

I again disagree.

I think this makes sense on a limited basis for very high end brands.

But overall, I think any hope a department store has of success is based on the overall shopping experience, cohesive curation of stock, consistent service, pricing and return policies etc.

When you start messing about with 70-100% subcontracting you can't ensure that consistency and cohesiveness or that the overall product assortment makes sense.

So I hope they don't go that route.........but we shall see.

I agree. It's a process they'll have to accelerate.

Department stores have always been experiential. Their most recent renovation/rebrand was great, as is their increased focus on events (at least at the Queen Street location). They'll have to move much further in that direction, as the department store seems to be an endangered species.

Sometimes I wonder if it's too late for Hudson's Bay. They seem intent on remaining a department store, when they need to be so much more. Closing two iconic downtown locations is a bad sign (it looks like the Winnipeg closure is confirmed).

 

[Regigate]

I recently had to go into the Hudson's Bay Centre (Yonge & Bloor) location in Toronto - comparing that to the Queen Street location is beyond night & day. There were parts of that store that didn't look like they'd been visited by customer or employee in decades, possibly longer. I was saddened just by being in the store (outside of the main entrance-way, where things are a bit more lively).

 

[Richard White]

Sometimes I wonder if it's too late for Hudson's Bay. They seem intent on remaining a department store, when they need to be so much more. Closing two iconic downtown locations is a bad sign (it looks like the Winnipeg closure is confirmed).

The problem with the Bay is they want to be too much like Holts.

When they started out they were a department store much like Eatons where you could find clothing and pretty much anything else you needed. Recently they have focused it on being a luxury destination with boutique areas within the stores.

The Queen Street Store is a disaster to navigate. I avoid it like the plague rather than have to locate the brand I want to buy. The older locations like STC are not as bad. They are a true to form department store and the layout works much better.

 

[Richard White]

I recently had to go into the Hudson's Bay Centre (Yonge & Bloor) location in Toronto - comparing that to the Queen Street location is beyond night & day. There were parts of that store that didn't look like they'd been visited by customer or employee in decades, possibly longer. I was saddened just by being in the store (outside of the main entrance-way, where things are a bit more lively).

That store is a dive. It is up there with the Eglinton Square location in terms of being forgotten about.

I was in there earlier this year and found it to have very little selection along with a very unkempt barren disposition. For a store in one of the most expensive locations in Canada I am surprised it is in such bad shape.

 

[picard102]

They have to become more like Holts, or at least something other than a department store, if they want to survive.
The market isn't interested in the department store model.

 

[ShonTron]

I recently had to go into the Hudson's Bay Centre (Yonge & Bloor) location in Toronto - comparing that to the Queen Street location is beyond night & day. There were parts of that store that didn't look like they'd been visited by customer or employee in decades, possibly longer. I was saddened just by being in the store (outside of the main entrance-way, where things are a bit more lively).

I had an online pickup on the top floor, where I was reminded of what the Simpson's store at Shoppers World Brampton looked like in the 1980s, complete with the red tile in the housewares section. The upper floors haven't been touched in decades, and are especially sad looking.

 

[Tuscani01]

I had an online pickup on the top floor, where I was reminded of what the Simpson's store at Shoppers World Brampton looked like in the 1980s, complete with the red tile in the housewares section. The upper floors haven't been touched in decades, and are especially sad looking.

Ridiculous that you have to go to the top floor to do on an online pickup. Another example of HBC not doing much work on getting to know how the online customer shops. Trying to force people looking for convenience through the entire store in the hopes of gaining some additional sales isn't going to retain those customers.

 

[Towered]

Ridiculous that you have to go to the top floor to do on an online pickup. Another example of HBC not doing much work on getting to know how the online customer shops. Trying to force people looking for convenience through the entire store in the hopes of gaining some additional sales isn't going to retain those customers.

It works great for Ikea!

 

[Tuscani01]

It works great for Ikea!

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.