HBC will shutter up to 20 of its 133 Saks Off 5th U.S. stores, the Toronto-based conglomerate announced. The company will also close its Home Outfitters business in Canada.
These actions are part of the company’s strategic plan to reduce costs, simplify the business and improve overall profitability. “Further streamlining our 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 today’s announcement exemplify the bold strategic actions we are taking to set HBC up for long-term success,” said Helena Foulkes, HBC’s CEO, in a press release. “We know this news 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.”
Home Outfitters is expected to close in 2019. The vast majority of markets in which it operates are served by the parent company’s flagship Hudson’s Bay division.
By Brannon Boswell