Hudson’s Bay Co., in a move to improve overall profitability, is reviewing its Saks Off 5th store fleet and expects to close up to 20 doors in the U.S.
The retailer said Thursday that the locations, which it hasn’t yet identified, are part of a fleet review of the business. The nameplate has a total of 133 locations. The company said that the “rationalization of Saks Off 5th fleet allows the company to focus on its best locations and saksoff5th.com.”
HBC said the actions are part of the company’s strategic plan to reduce costs, simplify the business and improve overall profitability. As part of the strategic initiative, the company said it was also shutting down its Home Outfitters business in Canada, noting that the vast majority of the markets the home retailer operates are already served by a Hudson’s Bay department store.
The company said that the closures once completed, are “expected to be slightly favorable to adjusted [earnings before interest, taxation, depreciation and amortization.]”
Helena Foulkes, HBC’s chief executive officer, said the additional streamlining of the company’s “retail portfolio enables even greater focus on our businesses with the strongest growth opportunities. The divestiture of Gilt, rightsizing of Lord & Taylor, the recent merger of our European retail operations in Germany” and the latest plan for Saks Off 5th and Home Outfitters “exemplify the bold strategic actions we are taking to set HBC up for long-term success.”
The company last year said it would close 10 Lord & Taylor stores. The Manhattan flagship closed its doors on Jan. 3 after the 11-story building that housed the store was sold to WeWorks. That $850 million transaction closed earlier this month.