July 21st, 2024

HBC should apply learnings from new Saks Global company to the Bay: experts

By The Canadian Press on July 5, 2024.

A Hudson's Bay department store is shown at Sherway Gardens in Toronto on Thursday, March 9, 2023. THE CANADIAN PRESS/Nathan Denette

TORONTO – Retail consultants say Hudson’s Bay Co. should apply lessons it learns from a newly-announced deal uniting several department store giants to its Bay business.

The deal announced Thursday will see Hudson’s Bay Co. buy Neiman Marcus and Bergdorf Goodman before combining them into a new business with Saks Fifth Avenue and Saks Off 5th.

Though the Bay stores have been left out of the new Saks Global company, Lisa Hutcheson of J.C. Williams Group says there’s lots of room for the parent company to replicate smart processes from its other subsidiary at its Canadian chain.

Hutcheson says those processes could include everything from supply chain learnings to inventory management and e-commerce tips.

Liza Amlani, co-founder of the Retail Strategy Group, says time is of the essence for the Bay to make such moves because she’s noticed fewer shoppers in stores and bigger markdowns, which are likely weighing on the business.

Hudson’s Bay says the Saks Global deal will recapitalize the brand and give it more liquidity.

This report by The Canadian Press was first published July 5, 2024.

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