A big Hudson’s Bay Company (HBC) announcement has revealed which of its properties hold the most promise for growth.
The Toronto-based retailer plans to take its namesake banner as well as Saks Off 5th, the off-price arm of Saks Fifth Avenue, to the Netherlands in the summer of 2017. According to a statement released Tuesday, as many as 20 stores are set to open over the next 24 months.
The news follows last September’s $2.8 billion buyout of Galeria Kaufhof Group and the subsequent addition of HBC Europe to the company’s portfolio. The proposed expansion will build on the infrastructure gained during the acquisition and will utilize the same information technology, procurement and digital support platforms.
HBC said it anticipates about 300 million euros ($340 million) in capital investment, the majority of which will be funded through landlord incentives, and the move is expected to create a total of 5,000 jobs, between construction and in-store positions.
“This is an extremely compelling opportunity to invest in the Dutch market, leverage the iconic Hudson’s Bay brand and introduce what will be the only nationwide all-channel premium department store,” Richard Baker, governor and chairman of HBC, said. “Expansion into the Netherlands is a natural extension of our existing presence in Belgium, as well as our planned entry into Luxembourg, and will complete our presence in all of the Benelux countries.”
Jerry Storch, HBC’s CEO, continued, “We believe that in the Dutch retail market there is unmet demand in both the premium department store and off-price segments. The Hudson’s Bay and Saks Off 5th banners, tailored for the Dutch market, will introduce our all-channel retail model to the Netherlands with a combination of exciting retail destinations and a best in class ecommerce presence.”
“We are committed to the Dutch marketplace and look forward to partnering with local governments to create exciting retail destinations,” Olivier Van den Bossche, head of HBC Europe, added.
In April, HBC revealed that consolidated retail sales rose more than 70 percent to 4.5 billion Canadian dollars (or $3.44 billion) in the fourth quarter, mainly due to the addition of HBC Europe. In the three months ended Jan. 30, the company’s profit more than tripled to 370 million Canadian dollars (roughly $280 million).