Hudson’s Bay, their legendary 355-year-old department store, is making big moves to look like a serious contender in an emerging partnership with Canadian Tire. This strategic partnership is designed to leverage Hudson’s Bay’s deep portfolio of brands and intellectual property within Canadian Tire’s established retail ecosystem. As the economy of retail continues to shift, stakeholders will need to take a careful approach in examining the promise of this merger.
Founded in 1670, Hudson’s Bay has a storied heritage. It combines different brands such as Gluckstein and Distinctly Home, and its own clothing label Hudson North. The department store is home to a discount chain called Zellers, which serves a more working class clientele. Along with the recent investments from Canadian Tire, Hudson’s Bay finds itself at a transformational fork in the road of its 347-year-old story.
Hudson’s Bay owns a trove of intellectual property from its various brands that, if properly capitalized upon, can add significant value beyond the retail landscape. Such as its well-known coat of arms, its brand trademarks and logos and last but not the least, own a very catchy name—“Bay”. Additionally, the recognizable stripes motif, consisting of green, red, yellow, and indigo colors dating back to 1779, contributes to the brand’s historical significance.
Now, twelve bids have been submitted for 39 Hudson’s Bay-related leases, showing concerted interest from Native Nations, investors, and other stakeholders. Canadian Tire may be on deck to receive Hudson’s Bay and its related banners. These agencies are now tasked with the challenge of quickly and efficiently managing this national portfolio.
Greg Hicks, a spokesperson for Canadian Tire, said he was looking forward to Hudson’s Bay’s brands being integrated.
“The Stripes will add beautifully to our portfolio of owned brands alongside other Canadian favourites that we have fostered and grown, and The Bay and its brands have long been known for their strength in categories that our customers will seek in our stores and online.” – Greg Hicks
Experts agree that the opportunity to engage younger audiences is definitely out there but caution against brand oversaturation. As M.D. of Hudson’s Bay, Elisha Ballantyne encouraged a creative approach to Hudson’s Bay’s stripes.
“You have to use the stripes appropriately,” – Elisha Ballantyne
Thomas Caldwell provided an insider’s view on the serious risks posed by this partnership.
“I’ve never anguished over a deal I’ve missed, but I sometimes anguish over deals I have done.” – Thomas Caldwell
Caldwell cautioned optimism, but pointed to opportunities that lay ahead.
“But I’m cautiously optimistic that they have so many opportunities that are a clear fit, that we at least have a few years before they’re going to push themselves into oversaturation.” – Thomas Caldwell
As Canadian Tire navigates this integration process, it will be critical to determine which brands from Hudson’s Bay will be utilized in their offerings. Ballantyne explained the incredible power and flexibility that Canadian Tire has in this area.
“It’ll be interesting to see which of these brands they use because obviously, they’re not obligated to use them all.” – Elisha Ballantyne
Hudson’s Bay is in a unique position to leverage its deep brand equity. At the same time, Canadian Tire unlocks a new market opportunity with this extremely recognizable moniker.
