Hudson’s Bay Establishes its E-commerce and Store Operations as Distinct Businesses as it Accelerates Digital-First Transformation

Toronto — Hudson’s Bay announced today that it will separate its store fleet and e-commerce business into two separate businesses, accelerating its digital-first transformation. This new operating model structures the organization to materially accelerate the biggest growth opportunities for each business, with dedicated leadership focus for each. 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.

Going forward, the e-commerce business will operate as “The Bay” and the 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 ecommerce business as President & CEO, and Wayne Drummond has been appointed President of the stores business.

HBC’s Governor, Executive Chairman and CEO, Richard Baker said, “Establishing e-commerce and stores as distinct businesses is a pivotal next step in the future of Hudson’s Bay. With the launch of Marketplace on thebay.com earlier this year, Hudson's Bay set in motion a rapid expansion of its ecommerce 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 for Canadians.”

Since the introduction of Marketplace in April of this year, The Bay has introduced more than 1,500 new or expanded brands and more than 25,000 new products through the new Marketplace Technology platform, and continues to grow and innovate on thebay.com — currently the 6th largest e-commerce business in Canada. Iain Nairn, President & CEO of The Bay said, “Hudson’s Bay is undoubtedly one of the most iconic retail brands in the world, and has proven itself incredibly nimble and responsive as consumer behaviour evolves. The digital-first transformation of The Bay takes us to the next level, with significant focus on technology investment and innovation - including the creation of Technology Hubs in both Toronto and Seattle, increased fulfillment capabilities, expanded marketing and extended vendor partnerships for a highly-curated assortment.”

Hudson’s Bay stores will play a critical role to the overall shopping experience and brand promise to customers.Wayne Drummond, President of Hudson’s Bay, “As we evolve and adapt, the role of stores has never been more important or vital to the collective success of our businesses. Hudson’s Bay stores will become discovery destinations and serve as an important touchpoint for customers.With stores in major cities across the country, Hudson’s Bay provides Canadians access to the product they need and want, while offering high-touch services that many others cannot.”

The Bay and Hudson’s Bay will work collaboratively to continue delivering an enhanced and seamless customer experience. Returns, exchanges, Hudson’s Bay Rewards and Hudson’s Bay credit cards will continue to be accepted both online and in stores.

ABOUT THE BAY AND HUDSON’S BAY

Through a digital-first, purpose-driven lens, Hudson’s Bay and The Bay help Canadians live their best style of life. As one of the country’s most iconic brands, Hudson’s Bay operates 86 full-line locations and The Bay operates thebay.com featuring Marketplace -- the 6th largest e-commerce business in Canada. The Bay and Hudson’s Bay have established a reputation for quality and style through an unrivalled assortment including fashion, designer, home, beauty, food concepts and more. The Hudson’s Bay Rewards program is ranked second in department store loyalty programs in Canada.

The Bay and Hudson’s Bay operate under the HBC brand portfolio. Founded in 1670, HBCis North America’s oldest company. The signature stripes are a registered trademark of HBC.

MEDIA CONTACT:

Tiffany Bourré
DVP, Communications & PR
tiffany.bourre@hbc.com
416-571-1301