Abstract
A common theme of the Canadian retail industry is that it is evolving at a rapid pace. External factors, such as the growth in the relative purchasing power of the Canadian dollar; increasing competition from discount rivals such as Wal-Mart; shifting consumer trends; and the emergence of the retail industry in Western Canada provide Hudson's Bay Company with new challenges as well as opportunities for growth. The clothing industry on which The Bay depends faces stagnant demand compared to the rest of the industry, while Home Outfitters may see a decline in sales as the Canadian housing market cools off. Substitutes to the traditional shopping experience such as e-commerce and mail-order products are growing rapidly and offer advantages which HBC cannot replicate in-store. However, while the retail industry may be becoming more competitive, HBC has recently been taken private and is free from the short-term focus which can often hamper turnaround strategies. The Company has outlined six key areas of improvement which show great promise.
