Apple's iBeacon Technology Comes to Hudson's Bay

Partnership with Swirl to deliver targeted promotional messages to customers.

Hudson's Bay Queen Street will deploy Apple's iBeacon

Hudson's Bay announced today that working with Swirl it was launching an in-store smartphone marketing platform. Using beacon technology, the retailer will deliver targeted content via their own and third party phone apps in selected stores.

Launched by Apple in 2013, iBeacon allows technology companies and retailers to reach consumers via apps running on their mobile phones. Small puck-like devices are installed inside stores which trigger the apps on a consumer's smartphone. The retailer can deliver customized welcome messages, promote special offers, and even target the message to specific departments as a customer walks through a store. In more advanced systems iBeacon can also be used to facilitate payments.

"Beacon technology is the future of retail marketing and Swirl's platform will assist us to make every visit to Hudson's Bay or Lord & Taylor even more rewarding for our customers." said Michael Crotty, Executive Vice President and Chief Marketing Officer at HBC.

The Swirl beacons utilize Apple's iBeacon technology as well as Bluetooth transmission to deliver content. Multiple beacons will trigger as customers travel throughout the store providing promotional content. The size of a department store is a particular advantage for this technology as it allows the retailer to deliver multiple messages across a broad array of product categories. In Toronto, Hudson's Bay will be targeting its Yorkdale and Queen Street locations. Consumers will have to download either the Hudson's Bay or SnipSnap apps and opt in to receive the messages.

The initiative is also being rolled out to selected locations at Hudson's Bay sister retailer Lord & Taylor in the United States. The moves coincides with HBC's recently announced expanded e-commerce and digital marketing initiatives. Within five years, the company expects to achieve 20% of revenues from online sources.

With consumers increasingly reliant on smartphones, retailers are looking for innovative ways to reach their customers. Though Macy's has recently been testing beacons, HBC's move marks the first time a major department store retailer has deployed the technology on a large scale.

Hotel groups Hilton and Starwood have also been experimenting with enhancing the consumer experience via iBeacon. At Starwood's Aloft chain, guests can use their phones as room keys and bypass the standard check-in procedure.

[Click here for the official Press Release]

Preview: New Hudson's Bay Queen Street Home Floor

Reborn seventh floor to officially open in May.

Hudson's Bay Queen Street Seventh Floor

For years the seventh floor at the Hudson's Bay Queen Street flagship was overlooked and housed only a small appliance department and stockrooms. All that has changed as the floor is being reborn with the addition of Kleinfeld Bridal and a brand new home department.

Hudson's Bay Queen Street - a cash desk on the seventh floor

The seventh floor is meant to be a one-stop destination for housewares and help cement the retailer's reputation as gift registry experts (they maintain the country's largest gift registry).

Hudson's Bay Queen Street - casual dining department

The china and glassware department has begun the move from their former fifth floor location, and other home departments will move in the coming weeks. Windows have been uncovered creating a modern, open, and light-filled space.

Hudson's Bay Queen Street - new housewares department

Brides visiting the adjoining Kleinfeld Bridal boutique will be able to shop and create gift registries all on the same floor.

Hudson's Bay Queen Street - a demonstration kitchen nears completion

Whereas previously home departments were scattered throughout the large store, now they will be found together on the seventh floor (with furniture and appliances one level below).

Hudson's Bay Queen Street - a feature wall in the casual dining department

The grand opening for Kleinfeld Bridal and the rejuvenated seventh floor is set for May.

News: Saks Fifth Avenue Coming to Queen Street and Sherway Gardens

As part of $650 million deal, HBC has agreed to sell it’s flagship Queen Street store and adjacent office tower to Cadillac Fairview as it plans two Toronto Saks stores.

Cadillac Fairview and HBC announced the deal this morning which will see HBC continue to occupy the site as part of a leaseback arrangement. The deal will incorporate a multi-level 150,000 square foot Saks Fifth Avenue location into the existing Hudson’s Bay store (which is about 750,000 square feet in size). Cadillac Fairview owns the adjacent Toronto Eaton Centre.

HBC had previously reported its intention to convert the Hudson’s Bay Bloor Street store entirely to Saks Fifth Avenue, this plan has been shelved.

“We’re very pleased to announce this agreement with Cadillac Fairview, which clearly demonstrates the tremendous value of our dynamic real estate portfolio,” said Richard Baker, HBC’s Governor and Chief Executive Officer. “This sale-leaseback provides HBC with resources to deleverage and accelerate investment in our growth initiatives. We continue to explore other options to create additional value through the power and potential of our real estate assets.”

“The opening of our first Saks Fifth Avenue stores at Toronto Eaton Centre and Sherway Gardens brings Canadian shoppers the full array of luxury fashion collections and exceptional service for which Saks is renowned,” continued Mr. Baker. “We especially appreciate Cadillac Fairview’s strong commitment to the Queen Street location and adjacent Toronto Eaton Centre, providing us with the opportunity to be a major part of Toronto’s premier luxury shopping destination.”

The Globe and Mail is reporting that the lease agreement is for 25 years with a renewal option for just under 50. The transaction demonstrates how HBC is willing to unlock the substantial value of its real estate assets (it owns many of its flagship stores).

Saks Fifth Avenue will also open a full line store at Sherway Gardens, which is also owned by Cadillac Fairview.

[Click here for the press release.]

News: Kleinfeld Bridal Says Yes to Toronto

Famed New York bridal salon prepares for Canadian debut.

Kleinfeld appointment station at Canada's Bridal Show

Last spring Hudson's Bay announced it had sealed a deal to bring acclaimed New York based Kleinfeld Bridal to its Queen Street store. The bridal emporium has become famous as the setting for the hit TLC reality show Say Yes to the Dress, where brides search for their perfect wedding dress.

Kleinfeld's Hudson's Bay location is scheduled to open in May and will offer over 20,000 square feet of wedding gowns, accessories, jewellery, and shoes. Its new home on the seventh floor of the Queen Street store (which once housed storage and an appliance department) will include 16 fitting rooms, an outdoor terrace, and a Maison Birks boutique.

Kleinfeld introduced itself to Toronto brides with a booth at Canada's Bridal Show last week. It featured a selection of dresses and allowed brides to book appointments for a consultation. Appointments are key to the Kleinfeld experience and can now be made via the website kleinfeld.ca (a microsite on the Hudson's Bay website). When making an appointment the bride is required to create a profile which allows the Kleinfeld consultant to prepare for their appointment, which will last about 90 minutes. Brides are encouraged to bring inspiration photos and share their ideas.

Hudson's Bay hopes the addition of Kleinfeld Bridal will further cement its bridal presence and strong gift registry. They have exclusive rights to the brand in Canada and if the Toronto launch is successful may launch additional locations in other cities.

Hudson's Bay Queen Street also includes the recently renovated Arcadian event venue, popular with weddings. Kleinfeld will be exhibiting at The Wedding Room show, presented by Hudson's Bay at Arcadian February 22nd-23rd.

[Image via Kleinfeld]

News: Saks Fifth Avenue Coming to Bloor Street

Hudson's Bay to convert Bloor Street store to Saks banner.

Hudson's Bay Bloor Street

Last week in an article in the Globe and Mail, Hudson's Bay Company CEO and majority owner Richard Baker confirmed new plans for the retailer's Bloor Street location. The article's author viewed a rendering which showed the store "sleekly redesigned, with a white façade and large sheets of glass at the front. And it prominently displays a new name: Saks Fifth Avenue."

Baker said the Canadian flagship will be the second-largest Saks store in the world (after the New York City location) and at 342,000 square feet nearly twice as large as the nearby Holt Renfrew.

Prior to the conversion of Simpson's Queen Street into The Bay in 1991, the Bloor Street location was the retailer's Toronto flagship. Part of the Hudson's Bay Centre, the store opened in 1974 as the anchor tenant in a complex that includes a 35 storey office tower, a Marriott hotel, condos, and sits atop the city's busiest subway station Bloor-Yonge. The store currently carries a full assortment of departments including furniture, appliances, and a restaurant through six storeys of selling space.

The renovation is expected to cost up to $100 million as the store will need to undergo significant modification. The store currently has low ceiling heights and an awkward maze-like interior layout. A big positive is the store's location at a busy intersection and a huge boom in local development (the large 1 Bloor East is currently under construction across the street).

Baker confirmed that up to eight Saks stores are planned for Canada and that he is currently negotiating for space at Sherway Gardens and Yorkdale. Also on the drawing board is the potential conversion of The Room at Hudson's Bay to Saks departments. Recently HBC appointed former Harrods executive Marigay McKee to president at Saks, and she will help oversee the forthcoming changes at Saks.

News: Hudson's Bay Reveals Sochi 2014 Canadian Olympic Gear

New collection aims to celebrate Canada while spreading the Olympic spirit.

Canadian athletes model the 2014 Sochi collection.

Hudson's Bay, the official outfitter of the Canadian Olympic and Paralympic teams has unveiled their official Olympic collections. The retailer will be dressing Canada's teams and now is offering all Canadians the chance to be a part of the Olympic moment.

"We're so proud to continue to be a part of the Olympic Games and are thrilled to be the Official Outfitter of the Canadian Olympic and Paralympic Teams," says Bonnie Brooks, President, Hudson's Bay Company.  "As a Premier National Partner of the Canadian Olympic Committee and Canadian Paralympic Committee, we support our athletes in many ways and we are excited to witness what they will accomplish at the Sochi 2014 Olympic Winter Games.  We at Hudson's Bay are fiercely proud to be Canadian and are passionate about bringing the Olympic spirit to Canadians through our clothing and we can't wait to cheer on our athletes, knowing that we CAN own the podium."

The 2014 Olympic and Paralympic Collection is meant to reflect a unique Canadian character. Key motifs in the collection include colour-blocking (using three main colours that Hudson's Bay calls Maple Leaf Red, Northern White and Winter Night Black), the maple leaf and crest symbols, and a nod towards diverse Canadian wildlife.

Stand out items include:

The Duffle Coat. A wool coat inspired by the iconic Hudson's Bay Point Blanket with large toggle buttons, $275.

The T-Shirts. Colour-blocked and solid colour t-shirts in a variety of designs, $30-35.

Reversible Down Jacket. Winter ready in red or black, with a signature crest on the sleeve, $150.

And of course ... the signature Olympic Mittens, $10.

The collection will be available at Hudson's Bay stores across Canada and at www.thebay.com. Prices range from $5-$30 for accessories, $12.99-$50 for children's wear, and $19-$275 for adult apparel (the most expensive item being the duffle coat).

The Hudson's Bay Company has been the official outfitter of Canada's Olympic and Paralympic teams since the 2006 winter games. Since beginning their partnership with the Canadian Olympic Committee, HBC has donated over $35 million to national sports organizations and recently renewed their partnership for a further eight years.

[Click here for the official HBC press release.]

News: Saks Fifth Avenue Lanches Saks OFF 5TH Website

Retailer's off price division opens e-commerce channel.

Saks OFF 5th website

Saks Fifth Avenue has been in the news lately with its recent acquisition by HBC and its plans to open stores in Canada. Now the venerable retailer is launching a new online store for it's Saks OFF 5TH outlet.

Saks OFF 5TH was originally launched as an outlet for Saks Fifth Avenue merchandise. It has evolved into a major retail brand in its own right with over 800 major brands offered off price at its stores and now through its new website.

“This is a significant milestone for Saks OFF 5TH as the company rounds out our omni-channel offerings. In addition to our 70 nationwide stores, the e-commerce site is yet another platform through which we can provide our curated off-price shopping experience. We want it to be the Saks of the off price world, a true extension of the brand,” said Robert Wallstrom, President of Saks Fifth Avenue OFF 5TH.

Saks has a successful online store for its mainline brand, one of the reasons HBC cited for acquiring the company. Recently it has been shooting back at luxury flash sale competitors like Gilt Groupe by launching timed specials called FashionFix on its website. Now with its Saks OFF 5TH website, Saks is reaching an even broader consumer base.

The Saks OFF 5TH website will offer the same brands found in stores, along with the Salon Z plus size women's collection currently in limited distribution. Online promotions will be consistent with store offers and new items will be added daily. The Saks FashionFix flash sales will move to the Saks OFF 5TH website.

“We designed the site to be a sleek, modern online reflection of the elevated design of the OFF 5TH stores with a strong value message. We think it will become a best in class off price fashion destination online,” said Michael Burgess, President of Saks Direct.

Though Saks has confirmed that Canada is the retailer's largest international market, the Saks OFF 5TH site does not currently offer shipping to Canada.

[Click here for the official press release.]

News: HBC Names New Saks Fifth Avenue President

Last week Hudson's Bay Company announced a new leader to head Saks Fifth Avenue.

New Saks Fifth Avenue President Marigay McKee

As HBC finalizes its acquisition of Saks Fifth Avenue, CEO Richard Baker named former chief merchant at Harrods Marigay McKee to the position of president. McKee is a 14 year veteran of Harrods and was credited with revitalizing the venerable department store's fashion assortment and growing their beauty business. She is also a member of the board of the British Fashion Council.

"Marigay McKee's experience as an effective world-class leader in the international luxury retail space is well-aligned with our vision for the Saks Fifth Avenue brand," said Richard Baker, Governor and CEO of Hudson's Bay Company. "She has a proven track record of success at the highest level of luxury and I'm very excited for her to head up our Saks business at HBC."

McKee's appointment takes effect once the acquisition is officially closed later this year.

"I am delighted to join Hudson's Bay Company to head up Saks Fifth Avenue and work with their dedicated team," said McKee. "Saks Fifth Avenue is one of the world's preeminent luxury retailers with a rich history and tradition of exceptional customer service." McKee added, "Saks presents a great opportunity as a world class brand with new frontiers for development. I'm excited for this unique challenge as we embark on this new chapter at the company."

Along with McKee's hire, Baker announced a corporate reshuffle. A new Office of the Chairman will be created consisting of Baker and COO Donald Watros. Senior HBC executives will report directly to the new Office of the Chairman. There will be four defined retail business units: the HBC Department Store Group (which consists of Hudson's Bay and Lord and Taylor), Saks Fifth Avenue, Outlets, and Home Outfitters.

"Our goals for this new structure are to maintain the unique identity of each retail brand, to build an effective and cost-efficient platform of shared services, and to position the Company for growth and expansion." Said Baker about the corporate changes.

In a related note WWD has reported that Saks is gearing up to roll-out more of their Off 5th outlet stores, including locations in Canada. Baker has said he envisions up to 7 full line Saks Fifth Avenue stores and 25 Off 5th outlets in Canada, as well as a dedicated Canadian Saks e-commerce site.

[Click here for the official HBC announcement.]

[Image via WWD]

Preview: Hudson's Bay Sherway Gardens Renovation

Major Renovation Nearing Completion

Mall entrance featuring new Hudson's Bay signage

The Hudson's Bay Sherway Gardens location has been undergoing significant renovations as part of a broader mall renovation and expansion. In the coming years Sherway Gardens will grow significantly, adding new retailers, restaurants, a parking garage, as well as a new Nordstrom store opening in 2016.

The new women's accessories department

Hudson's Bay is incorporating many of the design elements also being used at their Yorkdale and Queen Street locations which are also under renovation. Ceilings are being raised with bright new lights installed; floors are glossy and smooth; and the finishes are high end and modern.

Fragrance department

New cosmetics counters are currently being installed and the fragrance department has undergone a complete rethink. Locked glass showcases have been replaced with open sell units and freestanding display stands.

Topshop and Topman opening this fall

As part of a continued roll-out of the Topshop/Topman brands a dedicated shop-in-shop will open this fall with direct access via the mall.

Men's denim brands on the main level

Main level

Selected menswear is moving to the main level, joining women's shoes, accessories, and cosmetics. The second level now features women's fashions, but is still largely unrenovated.

New bed and bath shop on the lower level

All home accessories have been relocated to the lower level where you will also find men's suiting, accessories, and a newly expanded men's shoe department.

Gift Registry and china department

An official opening for the main level is scheduled for later this fall, and mall renovations will continue through to 2016.

In a related note, Sherway Gardens has officially announced an extension to store hours. Beginning September 28th, the mall will extend its Saturday closing to 9 p.m.

News: HBC to acquire Saks in $2.9 Billion Deal

Hudson’s Bay Company confirmed this morning its intention to acquire Saks Incorporated (operated of Saks Fifth Avenue and its OFF 5TH outlets) for $16USD per share, approximately $2.9 billion. Combined HBC will operate 320 stores (179 full line department stores, 72 outlet stores, 69 home stores, and 3 e-commerce sites) under the Hudson’s Bay, Lord & Taylor, and Saks Fifth Avenue banners.

"This exciting portfolio of three iconic brands creates one of North America's premier fashion retailers," said Richard Baker, HBC's Chairman and CEO. "I've had a long connection with Saks over the years, and am thrilled to bring one of the world's most recognized luxury retailers into the HBC family. With the addition of Saks, HBC will offer consumers an unprecedented range of retailing categories and shopping experiences. This acquisition will increase our growth potential both in the U.S. and Canada, generate significant efficiencies of scale, add to our powerful real estate portfolio and deliver substantial value to our shareholders."

Once the deal is finalized, HBC will recognize significant cost savings and growth opportunities both in Canada and the United States. Saks will continued to be based and operated from it’s base in New York City, but a Canadian roll-out was confirmed for both Saks Fifth Avenue and OFF 5TH.

In a later media call, Baker stated his intention for an eventual seven full line Saks Fifth Avenue stores in Canada, and a further two dozen OFF 5TH locations. Some of these locations could be converted from current Hudson's Bay locations. This move comes as Nordstrom prepares to open its first Canadian store next year.

[Click here for the official press release.]

News: Hudson’s Bay Company Interested in Saks Fifth Avenue

The Hudson’s Bay Company has reportedly been formulating a bid to purchase upscale American department store chain Saks Fifth Avenue. According to WWD, sources confirm that HBC has been working on a deal for Saks which operates 41 Saks Fifth Avenue Locations as well as their Off 5^th outlets.

Recently HBC was in failed talks with Bloomingdales to collaborate on boutiques in selected Hudson’s Bay stores in Canada. If HBC is successful in acquiring Saks, there is the possibility that Saks could open freestanding stores in Canada or operate boutiques in Hudson’s Bay stores.

Last week HBC re-organized their executive team, moving Bonnie Brooks to the position of vice-chairman which would give the veteran retailer a key hand in any deal.

HBC currently operates Hudson’s Bay and Home Outfitters stores across Canada and Lord & Taylor in the United States.

[Image via Saks Fifth Avenue]