HUDSON’S BAY WILL SEPARATE STORES FROM E-COMMERCE

Undoubtedly taking a page out of Saks Fifth Avenue’s playbook, Toronto-based retail giant, and Saks’ sister store, Hudson’s Bay will separate its own store fleet and e-commerce business into two separate businesses, accelerating its digital-first transformation.

Going forward, the e-commerce business will operate as “The Bay,” while the company’s 86-store fleet will operate as Hudson’s Bay, with The Bay responsible for brand direction, marketing, buying, planning, and technology for both businesses. Iain Nairn will lead the e-commerce business as president and CEO, and Wayne Drummond has been appointed president of the stores business

This new operating model structures the organization to materially accelerate the biggest growth opportunities for each business, with dedicated leadership focus for each division. The businesses will work closely together to deliver a seamless customer experience while making strategic investments in their respective growth plans. For customers, this will elevate the overall experience with significant enhancement to services, whether they shop in-store or online.

“Establishing e-commerce and stores as distinct businesses is a pivotal next step in the future of Hudson’s Bay,” said Richard Baker, governor, executive chairman, and CEO of HBC. “With the launch of Marketplace on thebay.com earlier this year, Hudson’s Bay set in motion a rapid expansion of its e-commerce business to gain significant market share and become the country’s largest premium hybrid online shopping experience. To date, digital performance and onboarding of new sellers has dramatically exceeded expectations. Furthermore, this move enables each team to make unencumbered strategic investments into their respective businesses to deliver an incomparable customer experience.”