A woman leaves the Hudson's Bay store in Regina, Sask. on May 7. Hudson’s Bay plans to close its Regina store next year after 55 years in the city, the latest in a series of cuts as the department store retailer copes with pressure on its business.Michael Bell /The Globe and Mail
Hudson’s Bay plans to close its store in downtown Regina next year after 55 years in the city, the latest in a series of cuts as the department store chain copes with pressure on its business.
The announcement of the closing follows dozens of job cuts disclosed last week, part of an effort at “right-sizing” the business, according to Hudson’s Bay. The shutdown of the Regina store, which is located in the Cornwall Centre shopping mall, will mean a further 60 job losses, spokesperson Tiffany Bourre wrote in a statement.
“HBC continually evaluates its real estate portfolio and looks at opportunities to optimize holdings,” Ms. Bourre wrote. “Through normal course of business, Hudson’s Bay has made the decision not to renew the lease for the Hudson’s Bay store at Cornwall Centre in Regina. With the lease expiring, the Hudson’s Bay store will close to the public in April 2025.”
The closing will leave Canada’s oldest retailer with just one store in Saskatchewan, in Saskatoon, as well as its online store.
“We thank our customers in Regina for their patronage and hope to continue serving the community,” Ms. Bourre wrote.
Retailers such as Hudson’s Bay that sell non-essential products have been struggling to attract shoppers, as months of inflation and higher interest rates have led many consumers to cut back on spending.
Hudson’s Bay also fell behind in paying its bills to suppliers last year, leading some to put product deliveries on hold. In November, the retailer’s parent company HBC LP completed US$340-million worth of real estate transactions in the United States and Canada. The company said at the time that the cash would help to fund its retail operations.
Hudson’s Bay had already been cutting costs, laying off hundreds of people in corporate roles in 2023. During a round of cuts last May, Ms. Bourre said that macroeconomic pressures had persisted longer than company executives had hoped.
And those pressures continue, with demand recently stagnating for some retailers. Statistics Canada reported that core retail sales – excluding gas stations, fuel sales and motor vehicle and parts dealers – were flat in February. While general merchandise stores and health and personal care retailers saw a modest increase in sales, other stores selling furniture, electronics, appliances, clothing, shoes, jewellery and luggage all experienced declines.
The Regina store will be the sixth location Hudson’s Bay has slated for closing since executive chairman Richard Baker took the company private in 2020. The retailer currently operates 82 stores across Canada. It has previously closed flagship locations in Edmonton and Winnipeg, as well as one of its two stores in downtown Toronto. The company also plans to shut down its location in Burlington, Ont., early next year.
“While we recognize the longstanding relationship this iconic brand has held within the shopping centre, as we look to the future of Cornwall Centre and the downtown revitalization plans, we are confident about the opportunities this brings for our customers and the community,” Margaret Cooper, a spokesperson for the mall landlord Cushman & Wakefield, wrote in a statement. Ms. Cooper did not respond to questions on Tuesday about the mall’s plans to fill the space.
Hudson’s Bay has also previously announced plans to “modernize” other stores. In some locations that has meant shrinking the square footage devoted to the department store and converting those areas for other uses such as office space, other retail shops or residential units.