April 6, 2018
New plan for Hudson’s Bay and Lord & Taylor will include a reduction of workforce and better online integration.
The initiative will also help to transform the company’s cost base and deliver a best-in-class all-channel model that integrates the in-store and online customer experience.
“We are reallocating resources to accelerate the opportunity we see online, as we run our brick-and-mortar operations more efficiently,” says Richard Baker, governor and executive chairman HBC. “Our team is taking the right steps to optimize our North American business and create efficiencies by leveraging the scale of our company. At this critical moment of change in the retail industry, I believe in the future of our all-channel model and we are adapting to meet the evolving needs of our customers.”
Highlights from the HBC transformation plan include:
- Creating two leadership teams for Hudson’s Bay and Lord & Taylor to drive market-specific strategies. The Hudson’s Bay team will focus on plans to build on its transformation in Canada; meanwhile, the Lord & Taylor team will focus on increasing the pace of change in the U.S.
- Integrating digital functions throughout the organization in order to deliver a seamless in-store and online experience for customers.
- Realigning resources including IT and digital, store operations and visual merchandising, buying and planning, and marketing to increase efficiencies and leverage scale.
- Optimizing in-store services.
- Reducing its employee base by approximately 2,000 positions.
The company expects to realize more than $350 million in annual savings when the plan isfully implemented by the end of fiscal 2018.
“Through bold, decisive actions we are creating a more agile organization that will align our cost base with the all-channel environment that we are operating in. Our transformation plan, the result of our six-month operational review in North America, is designed to realign the company and position HBC as the retailer of the future,” says Jerry Storch, chief executive officer, HBC. “We are equipping our North American banners to make the right all-channel decisions, with the support of world-class centers of excellence. These changes will enable us to react faster to the ever-changing environment and evolving customer preferences to get ahead of industry developments. I appreciate the diligent work of our team to transform our organization as we move forward.”
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