"Fate of Hudson's Bay still up in the air as extension on liquidation plan granted until Friday"/ "Hudson's Bay hopes to save 6 stores, begin liquidation process Monday"

Mar. 19, 2025 "Fate of Hudson's Bay still up in the air as extension on liquidation plan granted until Friday": Today I found this article by Alexandra Mae Jones on CBC:

Whether or not Hudson's Bay Company will have to undergo a full liquidation or be able to keep some stores afloat while it restructures is still unknown — the indebted retailer has received another extension from an Ontario judge that will push the decision to the end of the week. 

Ashley Taylor, lawyer for Hudson's Bay, addressed a Toronto courtroom on Wednesday to request an extension on the formal approval of the liquidation plan until Friday, saying that the company was still engaging with stakeholders and having "good, constructive discussions."

Canada's oldest company officially filed for creditor protection earlier this month, admitting it was struggling with financial difficulties. Taylor said at the time that the retailer was hoping to restructure by 

liquidating half its stores 

and monetizing some of the leases it holds in areas of prime foot traffic. 

However, they were unable to secure the funding from lenders that would be required to finance that restructuring, leaving the company scrambling and facing a full liquidation. 

Meanwhile, amid the corporate chaos, shoppers in many regions of Canada are acting as though liquidation sales have already started, with stores seeing empty shelves and increased crowds. 

More than 9,000 workers stand to lose their jobs if the company liquidates all of its

 80 stores, 

online offerings 

and the three Saks Fifth Avenue 

and 13 Saks Off 5TH stores 

that Hudson's Bay operates in Canada under a licensing agreement.

The deeply indebted retailer owes nearly $1 billion to creditors. 

It outlined in a news release on March 14 that a store-by-store liquidation process would begin following court approval, and that it could take up to 12 weeks. The court was originally slated to reveal its decision on Tuesday. 

Taylor stated in Wednesday's proceedings that the company had enough liquidity to keep operations going until Friday, but added that they may be ready to approve a plan as early as Thursday. 

Hudson's Bay Company is entrenched in Canadian history — founded in 1670 by fur traders, the company, in its original form, once owned a wide swath of northern Canada around Hudson Bay. 

In its modern form, its department stores were once bustling sites of commerce, hosting countless brands, along with its own branded lines of clothing and goods. 

How a liquidation sale works

According to the news release from Hudson's Bay, department stores and the associated Saks Fifth Avenue and Saks Off 5th stores will remain open during the liquidation process.

Customers will also, for a limited time, still be able to purchase goods on TheBay.com.

Unlike a clearance sale, where retailers may offer steep discounts fast to 

make room for new products 

and accept store credit in place of returns, 

a liquidation sale is more likely to 

start out with smaller price drops that grow larger as the deadline approaches,

and all sales are final.

Products that normally come with a warranty, like appliances, won't have those and may be more steeply discounted compared to clothing or shoes, according to Philip King, a lawyer who lectures on business law at Western University.  

King told CBC News that once the liquidation process is underway, Hudson's Bay will likely try to offload as much as they can to wholesalers.

It would cost more to ship products from their warehouses to stores, 

so these will be sold to "anybody who will buy large lots of merchandise," such as liquidators, 

in order to help recover more costs faster. 

In the stores, the more desirable products will likely get picked up first, even in the absence of large discounts, so anyone hoping to get a specific product shouldn't wait, he advises. 

Workers worried for their jobs

Something that shouldn't get lost in the shuffle, King pointed out, is who stands to lose the most if Hudson's Bay liquidates: the workers. 

"It's not just about earnings per share and returns for creditors and shareholders," he said. "At the end of the day, this is a very personal story for thousands and thousands of people."

While there are some protections available for workers, 

in liquidation cases like this, 

he says they're unlikely to get as much severance as they're owed. 

"For someone who's worked there for 20 years and has a lot of seniority and a lot of severance entitlement built up, 

they won't be getting anything near what they ought to be getting."

Andrew Hatney, a lawyer for the employees, stated in the courtroom Wednesday that he "was not happy to hear that liquidation is still on the table," encouraging the company to keep working to find other solutions. 

"This type of job loss will be a disaster for Canada."

Speaking to CBC News after the hearing, Hatney said that it might look like a "normal day of shopping" when customers walk through a Hudson's Bay store, "but when we talk to the employees, it's not business as usual."

"They're very worried for their jobs."

Stores already seeing empty shelves

Even though official liquidation sales haven't started yet, shelves are already looking bare at many Bay locations. 

In Toronto, shoppers were looking for sales earlier on Tuesday. One such hopeful, Richard Bryce, told CBC News that he'd specifically headed to The Bay when he heard about the possible liquidation. 

"Very sad," he said. "But given the uncertainty in the economy, I think Hudson's Bay has struggled for some time."

At one of the company's department stores in downtown Vancouver on Wednesday, shoppers descended on a display of the iconic Hudson's Bay point blankets, emblazoned with the green, red, yellow and navy blue stripes that have become the brand's trademark. Within minutes, they had sold out. 

Andrew Shirley, a shopper who came to check out The Bay's offerings said he grabbed "pretty much the last item with the iconic stripes" left in the store. 

His prize? A robe. 

"Everything else has been completely cleaned out."

https://www.cbc.ca/news/business/hudsons-bay-liquidation-1.7486723#:~:text=%22They%27re%20very%20worried,for%20some%20time.%22

Mar. 21, 2025 "Hudson's Bay hopes to save 6 stores, begin liquidation process Monday": Today I found this article on CBC:

After a week spent seeking a lifeline, Hudson's Bay says it has found a way to keep six stores open. 

Canada's oldest company is back in court today to seek permission from an Ontario judge to liquidate all its other stores, and hopes to begin that process starting Monday.

The six stores being saved from the liquidation sale include the flagship location 

on Yonge Street in Toronto, 

as well as a store in the city's Yorkdale mall 

and another farther north in Hillcrest Mall in Richmond Hill, Ont. 

The remaining three span Montreal, 

the Carrefour Laval mall 

and Pointe-Claire, Que.

Hudson's Bay lawyer Ashley Taylor says the company is making the request because recent sales have exceeded the company's expectations, allowing the retailer to keep operating six of the stores and pay back interim financing it received from a lender.

The company's financial troubles have led to a flurry of sales from customers looking to snap up its famed striped products, for fear the retailer would close up shop for good.

Ashley says the company wants the ability to pull additional stores out of the liquidation should the company find a way forward for even more locations, but he warns if a restructuring solution is not found very quickly, the six stores will be added to the liquidation sale.

The six excluded stores only have until April 4, otherwise they get added to the liquidation.

Court documents also show the company is looking to wrap up the liquidation sales by June 15, though it didn't outline how deep the discounts may be.

It's also asking the judge for permission to vacate the properties by June 30.

Stores will not accept any loyalty programs but will accept employee and retiree discounts reduced to 10 per cent on all items except what is categorized as clearance until April 6, court documents showed. 

Sales on the website will continue up to April 15 and no refunds or exchanges will be accepted.

Lawyers for the company and its stakeholders are back in court after a week of trying to resolve as many disagreements as possible before the judge ruled on whether he'd approve the liquidation plan.

For the 9,364 employees on the company's payroll, the potential closure of 80 Hudson's Bay stores, three Saks Fifth Avenue stores and 13 Saks Off 5th locations in Canada will have deep consequences.

https://www.cbc.ca/news/business/hudsons-bay-jobs-store-closures-1.7489551

The other 2 blog posts of the week:

"Dollarama buys land for Calgary warehouse, targets 2,200 Canadian stores by 2034"/ "Dollarama to buy retailer reject shop for twice market value"

https://badcb.blogspot.com/2025/03/dollarama-buys-land-for-calgary.html

"Comark to Close Cleo and Ricki’s Chains Amid Challenges"/ "Ransomware, disease and 'ultra low-cost retailers': Why 3 iconic Canadian clothing stores went broke"

https://badcb.blogspot.com/2025/03/comark-to-close-cleo-and-rickis-chains.html

My week:

Mar. 27, 2025 Leo poll:

Marie-Hélène B, Québec , Québec, would like to know:

Should grocery stores sell food close to its expiry date at a reduced price rather than throwing it away?

Yes    92.59% (4562)

Maybe     5.07% (250)

No    2.33% (115)

My opinion: Yes, of course.  I'm all about saving money and reducing food waste.

Winter: It's the end of Mar.  The past few weeks everything was melting and it looks like spring.  Today it's snowing and I have to shovel snow.

I don't wash or put away my winter jacket and boots until May.

"Comark to Close Cleo and Ricki’s Chains Amid Challenges"/ "Ransomware, disease and 'ultra low-cost retailers': Why 3 iconic Canadian clothing stores went broke"

Jan. 7, 2025 "Comark to Close Cleo and Ricki’s Chains Amid Challenges": Today I found this article by Maya Johnson on Retail Insider:

Comark Holdings Inc., the Vancouver-based parent company of Bootlegger Clothing Inc., Cleo Fashions Inc., and Ricki’s Fashions Inc., has filed for creditor protection under the Companies’ Creditors Arrangement Act (CCAA). 

The move signals turbulence in the Canadian retail landscape, as the company announces plans to shutter its Cleo and Ricki’s brands entirely and downsize Bootlegger in an effort to find a buyer.

The company, which operates 221 stores across eight Canadian provinces, employs more than 2,000 people, including retail and head office staff. 

Comark’s decision to wind down operations for Cleo and Ricki’s comes after years of financial strain, exacerbated by the COVID-19 pandemic, a ransomware attack, and intensifying competition from ultra low-cost fashion retailers.

A Sobering Decision for Survival

“After careful consideration of all reasonably available options, the company has determined that it is in the best interests of its stakeholders to wind down its Ricki’s and Cleo operations and to close all retail store locations under those banners,” Comark said in a statement.

The company’s struggles have been mounting for years. 

The pandemic led to prolonged store closures, 

while a 2021 ransomware attack disrupted operations at a critical holiday sales period, resulting in an $8.2 million revenue loss. 

Additionally, global supply chain issues caused inventory delays that forced heavy markdowns, further straining profit margins.

Comark’s challenges reflect broader trends, where mid-tier retailers are being squeezed between high-end brands and aggressive low-cost players like Shein and Temu, according to the company in a statement. 

While Cleo and Ricki’s will be entirely liquidated, 

Comark hopes to salvage Bootlegger by downsizing its store footprint and seeking a buyer for the remaining business. 

The casual clothing retailer, which has been a staple in Canadian malls since the 1970s, has faced a 15% year-over-year decline in sales.

The closure of Cleo and Ricki’s, combined with downsizing at Bootlegger, could lead to as many as 200 vacant retail locations across Canada. This wave of vacancies will ripple through shopping malls, suburban plazas, and power centres where these stores are typically located.

A Legacy of Fashion Retail in Canada

Founded in 1976, Comark has played a prominent role in Canadian fashion retail. Its banners, including Cleo and Ricki’s, catered to working women seeking professional and casual attire. Bootlegger, meanwhile, became a go-to destination for casual denim and activewear.

However, 

the rise of e-commerce,

evolving consumer preferences, 

and a post-pandemic shift to hybrid work have upended demand for traditional officewear—a category that Cleo and Ricki’s heavily relied on.

Financial Pressures Come to a Head

Comark’s financial difficulties are well-documented. 

In 2024, the company reported a 19% decline in sales 

and a $21 million operating loss for the first nine months of the year. 

Total liabilities now exceed $168 million, including $61 million in accounts payable and $44 million owed to merchandise vendors.

The company’s largest creditor, CIBC, has issued demand notices, declaring all outstanding balances under its credit facilities immediately due. Vendors, landlords, and service providers have also initiated legal claims, seeking overdue payments.

A Perfect Storm of Challenges

Several factors contributed to Comark’s downfall:

• Pandemic Disruptions: Extended store closures during key shopping periods led to steep losses in revenue.
• Cyberattack: The 2021 ransomware attack halted operations for weeks, crippling inventory management and e-commerce.
• Supply Chain Woes: Seasonal merchandise arrived late, forcing markdowns and eroding profit margins.
• Competition: Ultra low-cost retailers disrupted the market, drawing budget-conscious consumers away from mid-tier brands.

What’s Next for Employees and Stakeholders?

Comark’s restructuring under the CCAA will leave more than 2,000 employees in limbo. While store-level staff will likely see their roles eliminated as stores wind down, head office employees may face a similar fate if a buyer for Bootlegger cannot be secured.

The ripple effects will extend to landlords, vendors, and service providers like Parian Logistics, which is owed $4.2 million for warehousing and distribution services. Without a steady revenue stream, many of these stakeholders will face significant losses.  

A Difficult Road Ahead

As Comark begins the arduous process of liquidating two of its legacy brands, the future of Bootlegger remains uncertain. The once-thriving retailer must navigate a reduced footprint, intense competition, and a challenging economic climate to secure its survival.

For Canada’s retail industry, the closures serve as a stark reminder of the challenges ahead. From e-commerce disruption to shifting consumer habits, retailers must adapt swiftly to survive.

In the meantime, thousands of employees, landlords, and suppliers are left grappling with the fallout. And to some, this is the end of an era where it feels like we’re losing yet another piece of Canadian retail history.  

https://retail-insider.com/retail-insider/2025/01/comark-to-close-cleo-and-rickis-chains-amid-challenges/

Feb. 16, 2025 "Ransomware, disease and 'ultra low-cost retailers': Why 3 iconic Canadian clothing stores went broke": Today I found this article by Jason Proctor on CBC:

For three weeks in November and December 2021, iconic Canadian clothing chains Bootlegger, Cleo and Ricki's found themselves paralyzed — staring down the barrel of the "critical holiday season" but prevented by ransomware from moving inventory.

The attack occurred on Nov. 23, but the businesses weren't able to regain access to their internal systems until Dec. 13 

— a lag time that forced the 221 affected stores to mount heavy promotions 

in order to offload the substantial portion of seasonal clothing caught up in the delay.

According to court documents filed as part of insolvency proceedings by Winnipeg-based Comark Holdings 

— the company which owns all three retailers

 — the "brick and mortar stores lost approximately $8.2 million in revenue due to the cyber incident alone."

Headwinds for clothing retailers

Chief executive officer Shamsh Kassam's affidavit provides a detailed window into the array of problems which forced Comark into creditor protection: 

the ransomware attack, 

the lingering impact of COVID, 

conflict in the Middle East 

and the rise of so-called "ultra-low-cost retailers."

An Ontario Superior Court judge has given the green light in recent weeks to deals that will see Ricki's and Cleo sold to Canadian retail billionaire Doug Putman — owner of Toys R' Us and Northern Reflections — and Bootlegger likely going to Warehouse One clothing.

But Canada's retail clothing and accessories industry — which generated $3.6 billion in 2024 

— still faces the same headwinds that left Comark $61 million in debt.

"The competitive retail and, in particular, retail apparel industry in Canada has undergone significant changes in the past decade," writes Kassam, who is based in Vancouver.

"As a result of these changes, many Canadian retailers, including apparel retailers ... have filed for protection ... including 

Reitmans, 

Aldo, 

Aeropostale, 

American Apparel, 

Mexx, 

Forever XXI, 

Target Canada, 

Express, 

Sears Canada, 

Nordstrom Canada 

and Ted Baker Canada,"

Deep Canadian roots

The court documents spell out the history of all three stores, which have been part of the Canadian retail landscape for decades.

Ricki's was founded in 1939 in Brandon and sells mostly tops, sweaters, pants, dresses, blouses, blazers, outerwear, denim and accessories. 

Cleo's predecessor, Irene Hill, was founded in 1958.

"The Cleo brand provides work wear and casual clothing for women over the age of 48," Kassam writes. "Cleo is the largest retailer of women's petite merchandise in Canada."

Bootlegger was founded in B.C. in 1971 — "a retailer of denim, other casual apparel and accessories for men and women between the ages of 35 and 55."

Despite the deep Canadian roots, a report filed by Comark's court-appointed monitor says 

82 per cent of private label merchandise made for the retailers "is sourced from foreign manufacturers, located primarily in China and Bangladesh."

Those supply chains would also come to play a role in Comark's fortunes.

"Unfortunately, 

international conflict in the Red Sea, 

protests at certain of the vendors' factories in Bangladesh, 

and rail and port strikes in 2024

 all caused additional delays 

and resulted in further strained vendor relationships 

and lost sales," Kassam writes.

"This, in turn, placed increased financial pressure on the ... businesses."

'Consumer needs have changed'

The latest court proceedings are not Comark's first experience with insolvency. The company was forced into creditor protection in 2020 as a result of COVID lockdowns 

— re-emerging after a sale to an entity controlled by its principal shareholder "poised for success."

But Kassam writes that even after the sale, further lockdowns in 2020 meant Bootlegger, Cleo and Ricki's lost out on Black Friday and Christmas sales.

Delays in supply chains caused by the pandemic 

also factored into the sales schedule, 

delivering seasonal items "outside of their targeted time frame,"

which in turn led to product markdowns.

"Consumer needs have also changed as the COVID-19 pandemic led to 

increased remote work 

and a decreased need for workwear clothing, 

which previously made up a sizeable portion of the [companies'] businesses," Kassam writes.

The ransomware attack sent a shockwave through the business — 

shuttering retail stores and an e-commerce platform for two days 

and freezing inventory in the weeks that followed.

"The effects of the Cyber Incident extended far beyond this time period," Kassam writes.

"All of the companies' internal processes and systems, including [their] history and critical path, were lost or compromised through the Cyber Incident and, 

as these systems were not recovered, 

they had to be rebuilt."

The court documents say the very nature of the competition has also changed drastically in the past four years.

"Namely, a difficult economic environment combined with the introduction and consumer uptake of certain ultra-low-cost fashion retailers, including Shein and Temu, have placed significant financial pressure on traditional fashion retailers," Kassam's affidavit reads.

As of December 2024, Ricki's, Cleo and Bootlegger had approximately 2,056 hourly and salaried employees across Canada. The court proceedings do not say what the future holds for them.

https://www.cbc.ca/news/canada/british-columbia/bootlegger-comark-insolvency-covid-1.7459717

4 hrs ago

They went broke because they were trying to sell inferior products at too high a price, so you were not getting value for your money.

4 hrs ago

Don't worry. They'll all be reopening soon, under a different name, after stiffing their suppliers and leaving mountains of unpaid bills behind.

"Dollarama buys land for Calgary warehouse, targets 2,200 Canadian stores by 2034"/ "Dollarama to buy retailer reject shop for twice market value"

Dec. 4, 2024 "Dollarama buys land for Calgary warehouse, targets 2,200 Canadian stores by 2034": Today I found this article by Tara Deschamps on BNN Bloomberg: 

A new Dollarama distribution centre and a lot more of the chain’s stores are headed for Canada over the next decade.

The retailer announced Wednesday that it had spent $46.7 million to buy land in Calgary, where it plans to build a warehouse and distribution center to service Western Canada.

The deal is slated to close in the fourth quarter of the company’s fiscal 2025 and the site is expected to be in operation by the end of 2027.

Looking even further out, Dollarama said it would expand its Canadian store network to 2,200 locations by 2034. 

The Montreal-based company said that store count was an increase from its prior goal of opening 2,000 stores by 2031. It currently has 1,541 locations.

The company decided to up its goal and open the centre “in light of the positive customer response to our value proposition year after year and following a re-evaluation of our market potential in Canada,” Neil Rossy, Dollarama’s chief executive, said in a statement.

The 200-store increase over three years works out to about 67 new stores per year, which Desjardins analyst Chris Li said makes it “right in line” with the current annual average of 60 to 70 stores per year.

He pointed out the distribution centre will be Dollarama’s second and should help it optimize its warehousing and distribution operations and support its growth plans while generating cost savings.

Irene Nattel with RBC Capital Markets felt similarly.

“In our view, (the) decision to add a second logistics hub in Western Canada makes a great deal of sense given growth in store count and geographic footprint, but as well from a security of supply/service perspective,” she wrote in a note to investors.

Dollarama’s announcements came the same day it reported a third-quarter profit of $275.8 million, up from $261.1 million a year ago.

That profit amounted to 98 cents per diluted share for the quarter ended Oct. 27, up from a profit of 92 cents per diluted share in the same quarter last year.

Sales for the quarter totalled $1.56 billion, up 5.7 per cent from $1.48 billion a year ago.

Comparable store sales rose 3.3 per cent as the number of transactions rose 5.1 per cent, but the average transaction size fell 1.7 per cent.

The results span a busy time period encompassing both the back-to-school season and the lead up to Halloween.

However, Canadians have been more prudent about their spending and some have cut back on discretionary purchases, weighing on retailers.

Dollarama’s price points tend to be much lower, helping it weather such periods, but Nattel said she’s still watching to see if the company encountered slowing demand in sales of non-essential goods.

This report by The Canadian Press was first published Dec. 4, 2024.

https://www.bnnbloomberg.ca/business/company-news/2024/12/04/dollarama-reports-2758m-q3-profit-up-from-2611m-a-year-ago-sales-up/

Mar. 27, 2025 "Dollarama to buy retailer reject shop for twice market value": Today I found this article on BNN Bloomberg:

Canada’s Dollarama Inc. has agreed to buy Australian discount retailer Reject Shop Ltd. in a deal pitched at a more than 100 per cent premium.

The A$259 million (US$163 million) offer values Reject Shop shares at A$6.68 each, more than double Wednesday’s closing price of A$3.15, the companies said Thursday.

Reject Shop shares surged as much as 111 per cent in early Sydney trading, the biggest gain on record.

Reject Shop is Australia’s largest discount retailer 

with more than 390 stores nationwide, 

selling a range of private-label and global branded goods, 

from Colgate toothpaste to homewares and pet food.

Dollarama has more than 1,600 outlets in Canada 

and owns a 60 per cent stake in Latin American discount retailer Dollarcity.

“We are excited about the opportunities that this transaction presents,” Reject Shop Chief Executive Officer Clinton Cahn said in the statement. 

“There is strong cultural alignment between our teams and we look forward to working alongside the Dollarama team.”

UBS Securities Australia Ltd. is advising Reject Shop and National Bank Financial Inc. is advising Dollarama.

Reject Shop’s largest shareholder, Kin Group, which owns a 20.8 per cent stake, intends to accept the offer.

Nasteho Said, Bloomberg News

https://www.bnnbloomberg.ca/business/international/2025/03/27/dollarama-to-buy-retailer-reject-shop-for-twice-market-value/

"Hudson's Bay lays off 41 staff while citing 'challenging headwinds'"/ "Hudson's Bay's demise marks the death of the traditional department store in Canada"

 

Jan. 17, 2025 "Hudson's Bay lays off 41 staff while citing 'challenging headwinds'": Today I found this article by Tara Deschamps on BNN Bloomberg:

TORONTO — Hudson’s Bay says it has laid off 41 staff as it revamps the retailer’s structure.

Charla Parkinson, a spokesperson for the department store chain, confirmed the staffing cut in an email but did not answer questions about what roles or cities laid off staff were in.

She positioned the layoff as a result of “challenging headwinds” that have hit the retail industry.

While the layoff was a difficult decision, she says it was a necessary move for the Toronto-based company.

The retailer laid off about one per cent of its workforce last April 

and then carried out an unspecified number of cuts in the summer, 

when it prepared to spin out some of its brands into a new entity called Saks Global.

In November, it also said it was backing out of its plan to operate a store at the redeveloped Oakridge Park in Vancouver.

This report by The Canadian Press was first published Jan. 17, 2025.

https://www.bnnbloomberg.ca/business/company-news/2025/01/17/hudsons-bay-lays-off-41-staff-while-citing-challenging-headwinds/

Mar. 18, 2025 "Hudson's Bay's demise marks the death of the traditional department store in Canada": Today I found this article by Sophia Harris on CBC:

The Hudson's Bay in downtown Vancouver already looks like it's going out of business. 

When entering the store, shoppers are greeted by warning signs that neither the store's elevators nor escalator work, and they must use the fire exit stairs. 

Employees aimlessly patrol fragrance and cosmetic booths with no customers in sight. 

Hudson's Bay was, for decades, a major shopping destination, offering multiple floors of fashion, accessories, furniture and appliances.

But now, it's likely to meet the same fate as other big department stores in Canada like Eaton's and Sears, which have already closed their doors due to slow sales and mountains of debt. 

Hudson's Bay is still holding out hope it will secure enough financing to stay afloat and restructure. 

But a more likely scenario is that the deeply indebted retailer will soon shut down, and start liquidation sales as early as this week. 

Smaller versions of the department store model are still thriving,

such as discount chain Walmart 

and Canadian fashion retailer, Simons. 

But the iconic department store with window displays and several floors of varied merchandise is coming to a close in Canada. 

Some experts say the reason, at its core, is simple: These retail giants got stuck in tradition and didn't change with the times. 

"They were trying to work with an outdated model," said retail strategist David Ian Gray. "It just, over time, became archaic."

That sentiment is echoed by shoppers who feel bad for the Bay — and don't shop there. 

"It's kind of sad that they're going out of business," said David Genio outside the Bay in downtown Vancouver.

But in the next breath, he added: "Their stuff is a little outdated I find and catered towards older people."

Outside the Bay in downtown Toronto, Cathy McCabe-Lokos agrees that the chain's demise is sad. But she also admits that the location "has been empty, kind of desolate for years."

The encroaching specialty shop

Toronto's Eaton Centre shopping mall is a microcosm for the demise of the traditional department store.  It opened 1977 with Eaton's as its anchor — one of Canada's largest department store chains at the time. 

However, Eaton's declared bankruptcy in 1999, after more than 100 years in business. 

Department store giant Sears took over the space until 2017, when it met a similar fate and shut down. 

U.S.-based Nordstrom then took over until 2023, when it pulled out of Canada due to lagging sales.

Gray says, starting in the 1990s, two big shopping trends aided the demise of the traditional department store: the growth of 

e-commerce 

and specialty shops.

He says department stores allowed shoppers to browse a large selection of merchandise, and gave them access to coveted brands smaller stores didn't carry.

But the emergence of online shopping allowed many brands to bypass department stores and sell directly to shoppers. 

It also meant Canadians could check out what's for sale without leaving their house. 

"The idea of going to a department store and spending a couple hours just to keep current was completely irrelevant," said Gray, founder of DIG360 Consulting in Vancouver. 

"We stopped window shopping."

The growth of specialty retailers — like Ikea for furniture and Best Buy for electronics — also hurt the omnibus department store.

They got "kicked at by specialty stores… that did it better and offered better range, and better value, and better servicing," said retail analyst and author, Bruce Winder.

He cites as an example Sears, which used to be a go-to place for appliances.

"They were number one, right? And then Home Depot started eating their lunch," he said of the U.S.-based home improvement retailer, which arrived in Canada in 1997.

Winder says the versions of the department store that still thrive in Canada, such as 

Walmart 

and dollar stores, 

still appeal to shoppers because their

varied goods 

are priced at a discount. 

"The concept of having many different categories under one store is not forbidden. It's not bad, but you have to have the right price point," said Winder. 

If you don't, he said, shoppers will trek to specialty stores where they'll typically pay more, but get added customer service. 

"At the Bay, if I saw a design from Gucci, well, I can just go to the Gucci store and get it," said Winder. "The expertise is better and the pricing is the same."

Simons moves in

Sometime this year, Quebec-based retailer Simons is set to move into part of that ill-fated empty space in the Eaton Centre once inhabited by Eaton's, then Sears, then Nordstrom. 

Retail experts predict Simons may have better success because, 

by selling only 

clothing 

and housewares, 

it's more of a specialty than a department store. 

Also, many items Simons sells are private-labels shoppers can't find elsewhere. 

The retailer's model is perhaps one traditional department store giants should have considered when they began losing shoppers. 

But, as Gray points out, it's hard to reinvent the wheel when your model was successful for decades. 

"It's almost impossible to then say, 'Hey, we're smart enough to see the writing on the wall and we need to blow that up to be successful again.'"

https://www.cbc.ca/news/business/hudon-s-bay-department-store-1.7486167

My opinion: I went to the Hudson's Bay in City Centre mall when it was closing down in 2021.  I like the store and products.  However, it was expensive, at least to me.

They did sell some snacks like chips and candy, but I didn't really like it so I didn't buy anything.

The other 2 blog posts of the week:

"Hudson’s Bay files for creditor protection"/ "Hudson's Bay files for creditor protection, intends to restructure"

https://badcb.blogspot.com/2025/03/hudsons-bay-files-for-creditor.html

"Hudson's Bay is in limbo after filing for creditor protection. Here's what you need to know"/ "Hudson's Bay says it will liquidate entire business if no financing can be secured"

https://badcb.blogspot.com/2025/03/hudsons-bay-is-in-limbo-after-filing.html

My week:

Hi, does anyone have a really long charger chord for a tablet,

that you could sell for cheap or give to me for free?

Thanks.