As Canadian Tire and Hudson’s Bay Company (HBC) had not successfully changed to meet the shifting shopping routines of customers even pre-pandemic, one expert claims that the retailers could be the next merchants to run into difficulty amid COVID-19, CTV News reported.
Canadian Tire recently registered a Q2 loss that was below the forecasts of analysts. Retail expert Doug Stephens said he is concerned because the merchant doesn’t allow some of its merchandise to be delivered to residences.
And Hudson’s Bay might have to shutter some stores for good, and could face difficulty keeping itself on an even keel, according to Stephens.
Stephens said, per the outlet: “HBC has never really honed a great online game. So they’re not any match for Amazon in terms of their online presence and ability to serve consumers online.”
He also foresees that clothing merchants will continue to face challenges amid the sweeping move to eCommerce. “The nature of the category doesn’t lend itself currently very well to buying online, because fitting is still an issue and the texture of garments and the feel of garments is also something that needs to be considered when buying,” Stephens said, per the report.
In March, news surfaced that the Hudson’s Bay CEO Helena Foulkes was leaving the firm after helping to blaze the trail for the company to go private. She came to the Saks Fifth Avenue parent from CVS Health Co. Richard Baker was to assume the chief executive position.
Hudson’s Bay Co. was the target of an activist investor, Land & Buildings Investment Management LLC, that sought to have the company maximize its real estate value by converting its selling spaces into workplaces, lodging facilities and boutiques, it was reported at the time.
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