Simons thrives while Hudson's Bay faces decline in Canada

Hudson's Bay is struggling to stay afloat in the retail market. The historic Canadian department store recently filed for creditor protection and is seeking approval to liquidate some or all of its 96 stores in Canada. This comes after years of declining sales and tough competition from other retailers. In contrast, Canadian-owned Simons is thriving. The department store chain focuses on clothing and home goods and is planning to open two new locations in Toronto later this year. This expansion will add to Simons' 17 stores across Canada, which have been performing well even as other retailers face bankruptcy. Founded in Quebec City in 1840, Simons has adapted to Canadian consumer preferences. It has avoided overexpansion, unlike Hudson’s Bay, and offers a mix of trendy and affordable items. Around 70% of its products are high-margin private labels, enabling the store to provide unique offerings without competing in low-margin categories like appliances. Simons also showcases Canadian designers, making it a popular destination for unique apparel and home goods. Each store has a distinctive design, contributing to its appeal and encouraging customers to visit its locations. Despite facing challenges like limited brand awareness outside Quebec and limited capital for expansion, Simons expects its new Toronto stores to boost sales by about 15%. Meanwhile, Hudson’s Bay, which has struggled under various ownerships, needs to find a new direction. One idea is to sell its traditional striped wool blankets in smaller boutique settings, possibly even within Simons stores or other retailers.