Canadian department store Hudson's Bay transforms and vows to take on Amazon through new markets

Hudson's Bay was founded in 1670 and is headquartered in Brampton, Canada. It has 88 stores across Canada and also operates an e-commerce website of the same name.

Hudson's Bay is developing an online marketplace that will allow third-party suppliers of all sizes to sell products directly to consumers, according to foreign media reports. The Canadian department store retailer called the transformation an initiative of "digital-first strategic evolution" and plans to launch the new marketplace on its thebay.com e-commerce website in 2021 .

According to Hudson's Bay , the marketplace will offer products belonging to its current apparel , home , and beauty accessories as well as new categories . The retailer said hundreds of sellers have already planned to join the launch, and other sellers can apply to participate through an online application portal. While the new marketplace will be like Hudson's Bay's e-commerce website, the marketplace will be limited to Canadian sellers .

The third-party online marketplace model is dominated by e-commerce giants Amazon , Walmart , eBay and Google. Currently, all of these companies offer exclusive versions for the Canadian market. But in the past year, some retailers, including Kroger and Chipotle, have taken some steps to gradually open up the U.S. market .

Now, Hudson’s Bay is preparing to hit the ground running with a major Canadian launch. The retailer may expand its online marketplace model to the U.S. through its Saks Fifth Avenue subsidiary , and is reportedly in talks to spin off Saks’ online business as a separate public company.

In addition to shifting its focus to e-commerce, Hudson's Bay Company 's transformation plan also plans to reduce the size of its physical stores . The company confirmed that it would lay off 600 people. The company said on Tuesday : "This is an extremely difficult decision, and we regret the impact it has on our employees. HBC is committed to treating each affected individual with fairness and respect during this difficult period."

Among several other changes to its holdings, Hudson's Bay Co. has retained most of its Canadian department store fleet after closing its Home Outfitters furniture stores two years ago and folding them into Hudson's Bay Stores.

In recent years, the company has sold U.S. department store Lord & Taylor (which has since gone bankrupt), stakes in Europe, and flash-sale site Gilt. Much of its investment is now going to Saks, which is undergoing a $250 million renovation of its New York flagship but has also scaled back due to the pandemic.

It is reported that as online sales in Canada are creating a wave of craze, Hudson's Bay Company said it is necessary to reduce the scale of physical stores and expand the scope of e-commerce, and is confident that it can take on Amazon, Walmart, eBay and Google through new markets .

Canada

Hudson's Bay

New Market

Amazon