HBC will close Home Outfitters in Canada and perform fleet review of Saks OFF 5TH outlets

    1 of 1 2 of 1

      HBC has made another major move to restructure its retail operations in the era of Amazon and other growing online giants.

      Today, HBC announced that it will shut down its Home Outfitters division in 2019 and perform a fleet review of its 133 Saks Off 5TH stores.

      The corporation said that in the vast majority of markets with Home Outfitters, there are also Hudson's Bay stores.

      Two Home Outfitters are in Metro Vancouver—one in Coquitlam and the other in Langley. Other B.C. Home Outfitters stores are in Victoria, Kelowna, and Nanaimo.

      There are 37 of these stores across Canada.

      “Further streamlining our retail portfolio enables even greater focus on our businesses with the strongest growth opportunities," HBC CEO Helena Foulkes said in a company news release. "The divestiture of Gilt, rightsizing of Lord & Taylor, the recent merger of our European retail operations in Germany, and today’s announcement exemplify the bold strategic actions we are taking to set HBC up for long-term success."

      She added that she knows this announcement is "difficult for our associates".

      "We are grateful for their ongoing efforts to serve our customers and we will work to find opportunities within HBC for impacted team members where possible," Foulkes said.

      In May, HBC reached a tentative deal to sell its flagship Vancouver store on West Georgia for $675 million. But the building never ended up being sold.

      Through the first three quarters of 2018, HBC posted a net loss of $405 million on revenues of $6.5 billion.

      That compared to a net loss of $665 million on revenues of $6.4 billion over the same period in 2017.

      As HBC struggles, Amazon is coming off a record year.

      It posted a 21 percent increase in sales in the fourth quarter of 2018, rising to US$72.4 billion.

      Amazon's annual sales rose 30 percent on the year to US$232.9 billion.