were all lines that supplemented traditional fur and retail and helped to

Were all lines that supplemented traditional fur and

This preview shows page 4 - 7 out of 18 pages.

were all lines that supplemented traditional fur and retail and helped to establish a thriving wholesale business [ CITATION Our \l 1033 ]. Today HBC is owned by NRDC Equity Partners, an American private investment firm. The company owns and operates department stores in Canada, the United States, Belgium, the Netherlands and Germany. Hudson’s Bay has a diverse portfolio of off price, mid-luxury department stores, and alternative services, including Hudson’s Bay, Saks Fifth Avenue, Saks OFF 5th, Lord & Taylor, Home Outfitters, Galeria Inno, Galeria Kaufhof, and Hudson’s Bay Financial Services [ CITATION Ray19 \l 1033 ]. In 2017, HBC registered $14.3 billion in
Image of page 4
3 revenue and held assets valued at $12.2 billion. As of 2019, HBC operates more than 400 stores. It is a public company listed on the Toronto Stock Exchange under the symbol HBC. Pressure for a Change Over the past few years, the profitability of the company has suffered a lot due to increased competition from both supercenters, and e-commerce sites. In the third quarter result of year 2017, Hudson’s Bay Co. lost $243 million in its overall revenue with a retail sale totaled $3.16 billion. The share price fell from 13.28 per cent to $10.32 at Toronto stock exchange [CITATION The17 \l 1033 ]. HBC’s poor financial performance reflects the declining industry, and the company’s slow adoption of technology. Continuous decline in sales and revenues forced the company to look for things which need to change. Because of the pressure they were getting from the stakeholders and shareholders the company closed a number of Home Outfitters, Lord & Taylor and HBC locations throughout the country. As per the new CEO Helena Foulkes, who says she had spent the last few months visiting stores across the company, told analysts, “it is clear that things do need to change," adding that she sees "tremendous opportunity to operate at a higher level, both for stores and digital” [ CITATION How18 \l 1033 ] Consumers are shifting away from the traditional retail model and to omnichannel shopping experience, which capitalizes upon digital and technological innovations. Big online companies like Amazon, which offer free, quick shipping, and competitive prices were eating a lot of the company’s market share. In the Amazon era, physical stores are no longer the destination for convenience purchases. The company has been underperforming and there has been pressure for change from a variety of stakeholders. In particular, there has been an increase in customer complaints and a loss of market share, both locally and internationally. With an
Image of page 5
4 introduction of new technologies and shifting demands of consumers towards online shopping had created a need for change. It was no longer possible for the company to stay the way they are if they hope to stay viable in the market.
Image of page 6
Image of page 7

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture