Hudson’s Bay is splitting its eCommerce and physical store operations in Canada into two separate businesses in an effort to accelerate the company’s digital transformation.
The company plans to brand its online business as “The Bay,” while its physical stores will continue to be called “Hudson’s Bay.” The Bay will manage brand marketing, buying, planning and technology for both of the businesses.
The two entities will collaborate on key areas such as returns and exchanges and will offer a unified rewards redemption experience. Customers will also be able to use Hudson’s Bay store card when they are shopping online.
Hudson’s Bay Chairman and CEO Richard Baker noted that the decision to split the two businesses is a pivotal move for the company, which will help it grow at a rapid pace.
“With the launch of Marketplace on thebay.com earlier this year, Hudson’s Bay set in motion a rapid expansion of its eCommerce business to gain significant market share and become the country’s largest premium hybrid online shopping experience,” Baker said.
The company decided to split its online and physical store business in the Canadian market five months after it moved to spin Saks.com into a separate business in the U.S. market.
The move seems to be paying off as it has allowed the company to focus on attracting more sellers to its online platform.
Since the introduction of Marketplace in April of this year, The Bay has introduced more than 1,500 new or expanded brands and more than 25,000 new products on thebay.com — currently the 6th largest e-commerce business in Canada, according to the company.