Ruby Liu, a notable British Columbia-based mall developer, knows exactly what she’s seeking. She intends to bring new life to the storied Hudson’s Bay department stores. Her ambitious plan to bring the retailer back from the brink to its former glory faces major hurdles ahead. After an initial bid for Hudson’s Bay was thwarted when Canadian Tire acquired its name and trademark stripes, Liu pivoted by securing up to 28 leases from Hudson’s Bay and its sister brand Saks across Alberta, British Columbia, and Ontario.
The linchpin of Liu’s strategy is to turn these leased spaces into a “new modern department store.” She made her billions developing profitable real estate projects across China. Now, she’s using that expertise to reshape the Canadian retail market. Her portfolio includes exceptional properties such as Tsawwassen Mills, Mayfair Shopping Centre, and Woodgrove Centre. She lists the exclusive Arbutus Ridge Golf Course.
This week Liu took a bold step that could have huge ramifications by showing up in Toronto on Saturday. In hiring a team of 10 employees with over 30 years of collectively retail experience he had deep-dive interviews with 13 former Hudson’s Bay staff. Liu has vowed to address the talent pool that’s already there. In addition, she pledges to focus on suppliers and vendors who used to work with Hudson’s Bay when selecting partners for her new venture.
Liu is addressing some huge obstacles on her way to producing a winning concept. She needs to compete with well-known incumbents such as department stores Simons and Holt Renfrew and the plethora of online retail channels.
As industry expert Jenna Jacobson points out, there’s a lot of time and energy behind-the-scenes that goes into this process. You’re doing research, you’re doing planning, you’re doing capital investment, logistical challenges, inventory, branding, coordination with people— all of it,” she said.
It’ll take Liu an estimated $100 to $150 purchase each sq. ft. This funding will support the transformation of the spaces she’s purchased. Meanwhile, the financial burden only increases. Repairing the HVAC system at one of Hudson’s Bay’s largest outlets is expected to cost upwards of a half million dollars. What’s more, elevator repairs or replacements may take as long as a year under Liu’s watch, making her timeline all the more difficult.
“These stores are several hundred thousand square feet, and that takes a lot to reposition,” noted Lisa Hutcheson, a retail consultant.
Liu’s focus on accountability first has brought Liu both praise and criticism among the contracting community. Most housing advocates think her plans would help ease the burden on landlords. They’re just as hungry to take up all of those cavernous spaces vacated by Hudson’s Bay’s gradual death.
In many respects, she characterizes their worries in a simplified manner. Their days of fearmongering about how they’re going to fill all that new square footage are gone, Hutcheson added.
Countervailing voices within the industry have raised big questions about whether her undertaking will be financially sustainable. As she pledged her assistance, Don Gregor said there were fine negotiations in order. It will take Liu and the landlords time to figure out the intricacies of their arrangements.
A clean negotiation will play out as an artful tango between inspired principals. Along the way, they’ll discover chances for compromise and concession as they listen and negotiate with one another. He remarked.
As Liu launches her own venture, she’s certainly not the first to try. She has to work with suppliers who are only now digging out from steep losses incurred by Hudson’s Bay’s prior crash-and-burn. For all of Liu’s obvious connections, many industry insiders cite rebuilding these relationships as key to Liu’s success.
Jacobson noted that Chinese department stores are typically a draw in and of themselves. This is a dramatic contrast to what we are used to seeing in the Canadian or North American market. She says establishing a unique and fun shopping atmosphere will be essential for the new commercial centers to succeed.
“It’s a destination where people could spend a significant amount of time … which is going to be needed in order to have a successful model moving forward,” Jacobson added.
The road ahead for Ruby Liu is fraught with challenges but filled with opportunities for innovation in the retail landscape. As her vision for Hudson’s Bay takes shape, many will be watching closely to see if she can successfully navigate the hurdles and bring her ideas to fruition.
