Hudson’s Bay Launches Outlet Store Concept 

Date:

Share post:

Department store retailer Hudson’s Bay has launched a Hudson’s Bay Outlet division with a storefront in Toronto. An existing Hudson’s Bay location in Edmonton will also be modified to offer outlet pricing as part of a store downsizing.  

Recently the 115,000 square foot Hudson’s Bay store at Eglinton Square in Toronto was restocked with clearance merchandise from Hudson’s Bay stores including apparel, accessories, intimates and footwear — home furnishings are also being offered in a space in the store that until recently housed a beauty department. 

Kosi Sivasankaran, Chief Stores Officer at Hudson’s Bay, said in a statement, “Transforming our Eglinton Square location into an outlet store for customers creates a fun and unique shopping destination, distinct from the Hudson’s Bay full-line experience.” Pricing and product is meant to “surprise and delight”, according to  Sivasankaran, which includes something of a “thrill of the hunt” element. 

Eglinton Square floor plan, click image for interactive version
Inside the new Hudson’s Bay Outlet at Eglinton Square. Photo: Google Images

New product will be shipped to the Hudson’s Bay Outlet store every two weeks from the retailer’s full-priced stores. Customers can earn Hudson’s Bay Rewards points on all purchases made at the outlet location. 

Tiffany Bourré, spokesperson at Hudson’s Bay, said that no other Hudson’s Bay Outlet store locations are in the works at this time. 

Hudson’s Bay’s Londonderry Mall store in Edmonton is also being downsized to one floor as reported recently in Retail Insider, with that location offering outlet pricing — renovations will be completed next month. The smaller Hudson’s Bay store will span about 60,000 square feet, half the size of the current two-level full-priced department store. Earlier this year, Hudson’s Bay had announced that the Londonderry store would be closing, and we’ve since been informed that it’s no longer the case. 

This isn’t the first time that Hudson’s Bay has had an outlet division. In August of 2014, the retailer launched its Hudson’s Bay Outlet concept with a 25,000 square foot storefront at the Toronto Premium Outlets. A Hudson’s Bay Outlet subsequently opened at the Montreal Premium Outlets in the fall of 2014 in a 27,000 square foot space. 

Former Hudson’s Bay Outlet at Toronto Premium Outlets. Photo: Toronto Premium Outlets via Facebook

The Toronto Premium Outlets location was converted to HBC-owned Saks OFF 5TH in March of 2016, and the Montreal Hudson’s Bay Outlet was shut in the spring of 2021. Unlike in Toronto, the Montreal location was not converted to the Saks OFF 5TH banner, which is said to now be struggling in Canada with some locations having closed.  

The timing could be right for Hudson’s Bay to relaunch its outlet division. Several months ago, Nordstrom Rack shut its seven Canadian outlet stores to coincide with the company’s exit from the Canadian market

Hudson’s Bay Outlet will also compete with TJX’s Canadian retail brands Winners, Marshalls and HomeSense given the categories carried. 

Department stores have been beefing up off-price offerings in the United States as well, with Macy’s expanding its Backstage concept. US-based Target was spawned from Minneapolis-based Dayton’s which once operated upscale full-priced department stores in the Midwest. It’s not yet known if the Hudson’s Bay Company will look to introduce outlet departments to its full-priced department stores as Macy’s has done. 

Future redevelopment plans for Eglinton Square. Image via Urban Toronto

It’s also not known for how long the Toronto Hudson’s Bay Outlet will remain open, given massive mixed-use redevelopment plans for Eglinton Square that include thousands of condominium units in towers. No major redevelopment plans are known to be in the works for Londonderry Mall in Edmonton. 

Craig Patterson
Craig Patterson
Located in Toronto, Craig is the Publisher & CEO of Retail Insider Media Ltd. He is also a retail analyst and consultant, Advisor at the University of Alberta School Centre for Cities and Communities in Edmonton, former lawyer and a public speaker. He has studied the Canadian retail landscape for over 25 years and he holds Bachelor of Commerce and Bachelor of Laws Degrees.

6 COMMENTS

  1. Interesting! Noticed Hudson’s Bay has opened a very similar concept inside some full line stores. The store in Cambridge has a quarter of the top floor next to Zellers separated out as an in-store outlet with the same “Spot the dot” concept.

  2. Last time I was at Hudson’s Bay on Ste-Catherine in Montreal, they had a large portion of a floor dedicated to outlet pricing. Absolutely no way to find anything in there however, and not much space to move around the alleys of clothing racks. Let’s hope HBC goes back to an outlet concept similar to the original they had opened in Toronto & Montreal Premium Outlet malls.

  3. I was gonna say, the Hudson’s Bay in Sunridge has this concept already, with the coloured dots and the additional savings. It’s cool that they’re going to roll it out on a large scale though!

  4. The Hudson’s Bay Sunridge Mall in Calgary has Zellers and right next to the Zellers space is the “spot the dot” clearance section as well. The clearance section pretty much took up the whole floor before Zellers took up some of the space. Would be interesting to see HBC convert the a full floor to Zellers and the other Floor to a Hudson’s Bay outlet. They need to do some renovations in the stores, make Zellers more of a everyday options for Canadian. Currently Hudson’s Bay is tired store and not a place most people shop often. The stores have potential to be something so much more then there are now. HBC just needs to do proper renovations to the stores.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

More From The Author

RECENT RETAIL INSIDER VIDEOS

Advertisment

Subscribe to the Newsletter

Subscribe

* indicates required

Related articles

Iconic Flo’s Diner in Toronto’s Yorkville Forced to Close After 33 Years Amid Landlord Dispute 

Retail Insider interviewed Flo’s co-owner who discusses the “heart wrenching” situation where he is being forced to close his business that began on Bellair Street in 1991.

Anatomy of a Leader: Teresa Spinelli, Owner of Alberta-Based Italian Centre Shop Ltd.

Spinelli discusses her leadership of the popular retailer which has expanded over the years, describing how she struggled to run the company at first and grew to love it.

Upscale Canadian Fashion Brand SMYTHE Expands with New Standalone Calgary Store [Interview/Photos]

It's the second store location for the Toronto-based brand, which is seeing success with its exclusive womenswear collections.

Toronto’s CF Sherway Gardens Hits Sales Milestone with Exciting Retail Growth and Future Plans [Interview]

The shopping centre is adding new retailers as sales per square foot hit an all-time high, with plans to re-tenant Nordstorm as foot traffic grows following Eataly's opening in the mall a few months ago.

ECS Coffee Opens Canada’s Largest Coffee and Espresso Equipment Gear Showroom and Retail Space in Toronto [Interview]

The new Etobicoke location is unique to Canada if not North America, according to its founder, with coffee roasting, equipment showroom, over 500 varieties of coffee, Youtube studio and various in-store experiences. He has plans to expand the concept nationally.

New Loblaws City Market Opens in Vancouver’s ‘The Post’ Building, Adding Grocery Competition to the Downtown Core [Podcast]

Craig and Lee discuss the opening of a new Loblaws City Market in downtown Vancouver's renovated Post building, and they explore its potential impact on local grocery shopping.

Loblaw Announces $2 Billion Investment in Canada for 2024 with Dozens of New Stores and 7,500 New Jobs [Expert Comment]

The retail behemoth will be growing substantially this year, following backlash over profits as inflation continues to impact Canadians.

Dubai-Based Asian Street Food Concept ‘Wok Boyz’ Expands into Canada with Plans for Multiple Locations [Interview]

The company's founder says the popular concept, with personalized meals, has an opportunity to grow substantially with its high-quality ingredients and theatrical flare, complete with fiery customer-facing woks.

Calgary Surge Basketball Team Launches Innovative Pop-Up at CF Chinook Centre to Boost Community Engagement [Interview]

The retail activation, which opened this month, is resulting in heavier foot traffic in a quieter part of the mall.

Upscale Pusateri’s Fine Foods to Close Yorkville Grocery Store in Toronto After 20 Years

The 5,500 square foot store opened to much fanfare in 2003, with valet parking, private chefs and pricey goods. 

Loblaw and Walmart Could be Forced to Adhere to Grocery Code of Conduct with Legislation [Op-Ed]

Sylvain Charlebois says that it's rare for all of Canada's political parties to agree, signalling a shift that could force grocers to comply amid record inflation.

Factory Direct to Shut All 14 Stores Amid Bankruptcy, Liquidation to Begin Saturday

The company, founded in 1995, is one of Canada’s largest privately owned discount retailers which struggled with declining sales and increasing costs following the pandemic.