Extensive service offerings attract new customersHBC offers a wide range of services such as financial services and corporate gift cards. In financialservices, HBC offers credit cards, insurance services, membership service and home and moveservice. Credit Cards are co-branded cards of Hudson's Bay Company and Capital One Canada.HBC Insurance offers insurance for life, health benefit, travel, dental, accident, critical illness andpet insurance.The membership services provide customers coverage and services that encompasshome, auto, personal finances and life assistance.The home and move service provides real estateand moving services. The corporate gift cards enable companies to choose from thousands ofproducts across Canada as gifts to clients and employees. In December 2014, HBC expanded itsportfolio with the launch of mortgage brokering and money transfer services through its Hudson’sBay Financial Services Group.Thus, diverse service offerings help HBC cater to a variety of customerneeds and provides cross selling opportunity.Wide range of branded merchandiseHBC is a leading North American retailer. The company offers a range of branded merchandise inCanada and the US through its three banners. In Canada, the company operates Hudson's Bay,Canada's largest national branded department store. In the US, HBC operates Lord & Taylor, aspecialty department store with locations throughout the northeastern US and in two major cities inthe Midwest. The company operates Home Outfitters, a kitchen, bed and bath superstore withlocations across Canada. HBC’s other brands include Saks Fifth Avenue, and Saks Fifth AvenueOFF 5TH. Saks Fifth Avenue is one of the world’s pre-eminent luxury specialty retailers. Saks FifthAvenue OFF 5TH offers value-oriented merchandise in the US.HBC's investment in its merchandising has been increasing over the years. In FY2014, the company'scapital expenditure on merchandising was C$176.9 million (approximately $170.4 million) as comparedto C$118.1 million (approximately $113.7 million) in FY2013. Increase in capital expenditure wasprimarily due to the acquisition of Saks in FY2014.The majority of the company's sale is from brandedmerchandise purchased directly from the brand owners or their licensees.