Hudson’s Bay Company continues to downsize its retail portfolio.
The retailer said it is performing a “fleet review” of Saks Off 5th’s 133 stores, and estimates closing up to 20 U.S. locations. No other details on the closures were announced. HBC also announced it will shutter its Home Outfitters chain in Canada. The moves are part of the company’s strategic plan to reduce costs, simplify the business and improve overall profitability.
Home Outfitters operates 37 stores across Canada, all of which are expected to close this year. Almost all of the areas losing a Home Outfitters store have a Hudson’s Bay, whose merchandise mix includes home furnishings and which accepts Home Outfitters gift cards, nearby, according to the company.
“Further streamlining our retail portfolio enables even greater focus on our businesses with the strongest growth opportunities,” said Helena Foulkes, CEO, HBC. “The divestiture of Gilt, rightsizing of Lord & Taylor, the recent merger of our European retail operations in Germany, and today’s announcement exemplify the bold strategic actions we are taking to set HBC up for long-term success.”
HBC has been aggressively streamlining its portfolio here and abroad. It recently completed the sale of its Lord & Taylor flagship on Fifth Ave. to WeWork, and announced it would close its Saks Fifth Avenue location at Brookfield Place in Manhattan. The three-level, 86,000-sq.-ft. location has been in operation just over two years.
In 2018, HBC sold a majority interest in its European retail operations to Signa Holdings, which owns the Karstadt department store chain in Germany, along with a 50% stake in its European real estate.