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retail-insider.com

Hudson’s Bay Downsizing Downtown Flagship Stores in Canada [Analysis]

Mixed-use developments will replace standalone flagship stores at a time when leading global department stores are in some instances growing in size while offering non-retail attractions.
retail-insider.com retail-insider.com


Commentary on the Hudson's Bay Centre at Yonge & Bloor:

Toronto 44 Bloor Street East: The future of the 340,000 square foot Hudson’s Bay store at the corner of Yonge and Bloor Streets in downtown Toronto is uncertain amid whispers of a redevelopment of the site. An investment surpassing a billion dollars will see upgrades to the subway interchange at the intersection (and below the store) and rumours include a partial demolition of the block including an office tower that could be replaced with a much taller building. Few details are available publicly at this time for the redevelopment of Brookfield-owned Hudson’s Bay Centre.
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And also the Queen Street store:

Toronto Queen Street: The Hudson’s Bay Company sold the flagship Hudson’s Bay store at 176 Yonge Street to Cadillac Fairview in 2014 for $650 million and the massive department store complex became part of the CF Toronto Eaton Centre. Currently, the building houses a Hudson’s Bay department store spanning about 886,000 square feet with a 150,000 square foot Saks Fifth Avenue store-in-store on three floors and a 20,000 square foot Pusateri’s-operated food hall within the building on the PATH subway level. Each floor plate of the Queen Street Hudson’s Bay store, which was once occupied by iconic retailer Simpsons, exceeds 100,000 square feet. About 34,000 square feet of valuable main floor retail space could be added if Saks were to close.

There’s a possibility that Cadillac Fairview and Hudson’s Bay could partner to redevelop the Queen Street building by adding at least one tower to the site to unlock value through density. The Queen Street Bay store’s sales prior to the pandemic were said to be slightly higher than that of Simpsons which occupied the building in 1979 — and that’s not taking inflation into account. In today’s dollars, Simpsons would have sold nearly $700 million annually in that one store alone, and the Bay’s sales are said to be a fraction of that.
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On the subject of HBC; I was in the Eglinton Square store yesterday........

Now, granted, this store almost certainly has a limited future.........

But I was immediately taken by what they did not do, while essentially closed to the public for several months.

The escalators (presumably shut down most of the time over the last while) have peeling paint on their panels..........and several overhead light fixtures were missing their diffusers....

Notwithstanding the above, the store was humming for a Monday, at traffic levels closer to a typical weekend.

No line to get in.......

But excessive lines at the cashes..........of course, that was self-inflicted, as someone directed cashiers to upsell every customer an HBC Credit Card on one of the 1st days of their reopening....... :rolleyes:
 
Northern Light said:
On the subject of HBC; I was in the Eglinton Square store yesterday........

Now, granted, this store almost certainly has a limited future.........

But I was immediately taken by what they did not do, while essentially closed to the public for several months.

The escalators (presumably shut down most of the time over the last while) have peeling paint on their panels..........and several overhead light fixtures were missing their diffusers....

Notwithstanding the above, the store was humming for a Monday, at traffic levels closer to a typical weekend.

No line to get in.......

But excessive lines at the cashes..........of course, that was self-inflicted, as someone directed cashiers to upsell every customer an HBC Credit Card on one of the 1st days of their reopening....... :rolleyes:
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I live within walking distance of that store and I avoid it like the plague for the reasons you described. It always reminded me of Zellers more than it did the Bay.

If I need to go to The Bay, I prefer to go to the STC where it is cleaner and I can actually find things.
 
Take this as you will.......

I was speaking to an employee of the chain today..........

I was told the decision to close Bloor Street has been made and is known internally.

I have not yet been able corroborate this; though I think most of us have expected that for awhile.

The person with whom I spoke either did not know, or wouldn't provide a date for said closure.
 
Northern Light said:
Take this as you will.......

I was speaking to an employee of the chain today..........

I was told the decision to close Bloor Street has been made and is known internally.

I have not yet been able corroborate this; though I think most of us have expected that for awhile.

The person with whom I spoke either did not know, or wouldn't provide a date for said closure.
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Simons as a replacement please?
 
oresama said:
Simons as a replacement please?
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I don't see Simons taking 250,000ft2. ++

I'm not sure if Brookfield keeps a department store here at all.

If they do, it will almost certainly be smaller.

I think Sak's would have made sense here, but it seems unlikely that HBC will be spending that kind of money.

(though moving it from Queen still makes sense to me, as does a Pusateri's food hall)
 
Over in Montreal, The plan to redevelop the flagship store has hit a snag; as the height of the proposed tower interferes w/the view of Mt. Royal.

The Mayor seems to like the proposal, and presumably, a re-work will be in the offing.

montrealgazette.com

Montreal pledges to help developer get Hudson's Bay tower built

The city's public consultation office has requested the proposed 25-storey structure be scaled back to preserve views of Mount Royal.
montrealgazette.com montrealgazette.com
 
Richard White said:
The Bay just lost the contract for the Olympics. I wonder how this will affect them..

Honestly though, Lululemon has better athletic and lifestyle gear.

https://www.theglobeandmail.com/spo...ons-bay-company-as-official-clothier-of-team/
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Not materially.

If you can design stuff that spins off into merch........then that's nice.

HBC had a couple of OK outings.....but a few near disasters too.

They've never approached what Roots pulled off that one time, when wearing Canadian Olympic apparel became a global trend.

****

Shall we bank on Lulu showing that less is more..............and demonstrating transparently.......that Canadian athletes are the finest in the world? LOL

If they do.....we may be censored on a host of Olympic broadcasts........but that might be good for sales...........and some competitors social lives........... :D
 
A Zellers pop up shop has launched inside the Bay location at Burlington Centre. More of these pop ups could be on the way for other stores, although no details are available yet.

retail-insider.com

Zellers Store-in-Store Launches inside of Hudson’s Bay Location [Photos]

More Zellers locations could open in Hudson’s Bay stores according to a Hudson’s Bay Company spokesperson.
retail-insider.com retail-insider.com
 
AlbertC said:
A Zellers pop up shop has launched inside the Bay location at Burlington Centre. More of these pop ups could be on the way for other stores, although no details are available yet.

retail-insider.com

Zellers Store-in-Store Launches inside of Hudson’s Bay Location [Photos]

More Zellers locations could open in Hudson’s Bay stores according to a Hudson’s Bay Company spokesperson.
retail-insider.com retail-insider.com
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I very much disagree with this strategy.

Zellers had some life left in it, when it was killed; but it was tired; if it were to be sustained at the time, it needed investment in better stores, improved assortment, better price points etc.

Regardless, it was aimed at the discount market.

Hudson's Bay as a brand has rightly tried to reposition itself as upper-middle to avoid head to head competition with Walmart.

Bringing Zellers back to occupy 20% or more of a Hudson's Bay store footprint serves to diminish the latter, while not being useful to the traditional Zellers customer.

****

If Zellers were to be revived, the way to do it, other than building completely new stores would be the wholesale conversion of the dumpster fire Hudson's Bay stores that haven't been properly invested in; and are too
small to be what HBC says they would like to position them to be.

Just flip the whole store, so you can get rid of a 'B' or 'C' level store that drags on the reputation of Hudson's Bay (such as it is); and you have ample room to test out new concepts for a lower-price segment.

I think Giant Tiger, among others, establishes that there is some life in the discount concept; a space between Dollarama and Walmart.

But to pull it off you need to identify what that market needs and wants, and how to differentiate your offer.

I would aim to bring back the Lunch Counter idea as a way to drive traffic, I'd think about an inordinate focus on seasonal (allows regular product refresh, and its not a well-served segment of the market);
I'd look heavily into toys, as children drive traffic; I would pair that w/children's wear and snacks/candy.

A bunch of pseudo-nostalgic shirts in a space designed for a version of The Bay that no one has built in 30 years is not my idea of a retail strategy.
 
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