While Hudson’s Bay, Canada’s oldest retailer, faces significant financial pressure and is restructuring under creditor protection, other retailers appear to be thriving.
Last year, Quebec-based brand Simons announced plans to open two new stores in Toronto, representing a substantial $75 million investment that would generate about 400 jobs.
Overall, the company has invested significant resources in enhancing its digital infrastructure and e-commerce, totaling $300 million since 2019.
Japanese retailer UNIQLO will also be expanding its footprint in North America, with new stores planned in Burlington, Toronto, Montreal and Quebec City, expected to open before the fall.
Carl Boutet, chief strategist at Studio RX and faculty lecturer at McGill University said that there are many factors behind Hudson’s Bay’s current predicament compared to other companies, but the situation is complex.
“There’s sort of this understanding there’s been a bit of lack of investment into the business because of the shortage of funds. We learned that they lost $300 million last year, which obviously didn’t help the situation,” Boutet noted in a recent interview.
“So, and there’s been a big restructuring from their US operations, where they basically have spun off. There’s a lot of factors at play, including the leadership.
The Hudson’s Bay Company (HBC) was acquired by American private investment firm, NRDC Equity Partners in 2008.
Boutet said that he considers UNIQLO and Simons “proper retailers” whereas Hudson’s Bay, in his view, has become more of a “real estate company” since its change in leadership.
“In the last decade, I really got the impression that they were more interested in finding ways to value the real estate than to increase the success of the retail business,” he continued.
“[UNIQLO and Simons] have also invested quite a bit on their stores. But they made big investments in terms of their e-commerce. The big difference is the investments. Where have they placed that money? And they’re more than just real estate firms.”
