Hudson’s Bay to shutter 10 Lord & Taylor stores, including Manhattan flagship
MARINA STRAUSS
After years of resisting significant store closures, Hudson’s Bay Co. is now preparing to shut up to 10 of its U.S. Lord & Taylor outlets, including its iconic flagship on Fifth Avenue in New York, while selling its Gilt online division, amid disappointing first-quarter results.
The moves come about four months after Toronto-based HBC named as its new chief executive officer Helena Foulkes, a seasoned retail leader who previously helped strengthen the drugstore division of U.S.-based CVS Health Corp.
Now, Ms. Foulkes is starting to put her stamp on HBC, having appointed some new executives – including former CVS managers – and sending a strong signal that she is ready to make big, bold moves at HBC to revive its struggling business.
“We still have a lot of work to do but we’re committed to making the right business decisions to turn our results around,” Ms. Foulkes said on Tuesday after the department-store retailer released first-quarter results that missed analysts’ expectations.
“Every option is on the table.”
HBC has grappled for years with a fast-changing retail market and the rise of e-commerce powerhouses that are reshaping the landscape and forcing incumbents to either reinvent their businesses or falter.
HBC’s first-quarter results reflect its difficulties as sales across most of its divisions dipped while costs rose, although bright spots were its luxury Saks Fifth Avenue chain and its e-commerce. The company’s stock fell about 1.5 per cent to $10.46 on the Toronto Stock Exchange.
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