In part a response to its marketplace launch and growth, Hudson’s Bay has announced that it will separate the company’s store fleet and e-commerce operations into two separate businesses, accelerating its digital-first transformation.
The new operating model structures the organization to accelerate the biggest growth opportunities for each business, according to Hudson’s Bay, with a dedicated leadership focus for each. The businesses will work closely together to deliver a seamless customer experience even as they make strategic investments in their respective growth plans. The new approach will elevate the overall customer experience with significant enhancement to services, whether consumers shop in-store or online, the retailer added.
Under the plan, 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 the brand direction, marketing, buying, planning and technology for both businesses. Iain Nairn will lead the e-commerce business as president and CEO, while Wayne Drummond becomes president of the store’s business.
Since the introduction of Hudson’s pay marketplace operation in April, The Bay has introduced more than 1,500 new or expanded brands and more than 25,000 new products through its Marketplace Technology platform, the company indicated, and continues to grow and innovate on thebay.com, now the 6th largest e-commerce business in Canada.
In announcing the change, Nairn 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 behavior evolves. The digital-first transformation of The Bay takes us to the next level, with a 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 is undoubtedly one of the most iconic retail brands in the world and has proven itself incredibly nimble and responsive as consumer behavior evolves. The digital-first transformation of The Bay takes us to the next level, with a 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.
-Iain Nairn, President & CEO, Hudson’s Bay
Hudson’s Bay stores, the company stated, will contribute to the overall consumer shopping experience and brand promise to customers.
Drummond noted, “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.”
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 the 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 for Canadians.”
Hudson’s Bay operates The Bay department store as well as Saks Fifth Avenue stores and Saks OFF 5th. In June, HBC and growth capital investor, Insight Partners, partnered to establish Saks OFF 5TH’s e-commerce business as a standalone entity.