Hudson’s Bay to split store network and e-commerce site into two businesses

Canadian fashion retailer Hudson’s Bay has announced plans to split its physical store network and e-commerce operations into two separate businesses in a move it says will accelerate its digital-first transformation.

Its 86-store fleet will continue to operate as ‘Hudson’s Bay’ and will be led by Wayne Drummond, who has been appointed as president, the company announced Friday.

Meanwhile, the e-commerce business will operate under the name ‘The Bay’ and will be led by Iain Nairn, who has been appointed as president and CEO. The Bay will be responsible for brand direction, marketing, buying, planning and technology for both businesses.

The company said the new structure will “materially accelerate the biggest growth opportunities for each business”.

The news comes as Hudson’s Bay, like many big-name retailers, is putting more focus on its digital channels to keep up with growing online competition amid changing consumer shopping habits.

The Bay CEO Iain Nairn said Hudson’s Bay has proven itself “incredibly nimble and responsive as consumer behaviour evolves”.

Since the introduction of its marketplace in April, The Bay has introduced more than 1,500 new or expanded brands and more than 25,000 new products. It is currently the sixth-largest e-commerce business in Canada, according to the company.

Nairn said: “The digital-first transformation of The Bay takes us to the next level, with significant focus on technology investment and innovation - including the creation of Technology Hubs in both Toronto and Seattle, increased fulfilment capabilities, expanded marketing and extended vendor partnerships for a highly-curated assortment.”

But Hudson’s Bay stores will continue to play “a critical role” in the retailer’s overall shopping experience, it said.

“As we evolve and adapt, the role of stores has never been more important or vital to the collective success of our businesses,” Hudson’s Bay president Wayne Drummond said.

“Hudson’s Bay stores will become discovery destinations and serve as an important touchpoint for customers. With stores in major cities across the country, Hudson’s Bay provides Canadians access to the product they need and want, while offering high-touch services that many others cannot.”