Hudson's Bay is the End of an Era

Hudson's Bay closes for good on Sunday

Yesterday afternoon I make a quick visit to Hudson's Bay before it closes for good on Sunday.

Inside on the ground floor, there was a queue to buy jewellery, while everything else seemed to be cleaned out. The cosmetic counters had been cleared out ages ago, and the section where handbags were sold were replaced with racks of very large sized clothing for men.

Other counters had random items like Spanx tights, bowls, plates and label stickers.

I didn't bother going up to the other floors as it was so demoralising seeing what was left.

After 355 years, it's the end of an era. And the end of department stores in Canada: Woodward's, Eaton's, Sears, Nordstrom, and now The Bay (and Zellers).

The New Face of The Bay

Liu (right) with her proposed new logo for her shopping malls

There are only a few more days left before customers can get their last purchases from The Bay, as it will be closing on June 1 after declaring bankruptcy.

So far Canadian Tire has offered C$30 million for the intellectual property rights of the 355-year-old company, including the iconic stripes and coat of arms.

Meanwhile Hudson's Bay plans to sell up to 28 of its 39 leases in British Columbia, Alberta and Ontario to Chinese-Canadian billionaire Ruby Liu Weihong's Central Walk at an undisclosed price. The Bay has sought court permission to go ahead with the transaction.

Liu will purchase 28 of The Bay's leases

She plans to open a chain of more than 20 retail stores in the three provinces, naming them after herself -- "Ruby Liu: A New Bay", as she can't use the Hudson's Bay name... unless Liu makes a deal with Canadian Tire.

"We wanted to buy this as well [intellectual property]. But Canadian Tire is a giant company with deep pockets and we are a smaller company. It's also the pride of Canada. They offered more money," she said in a media interview.

Liu didn't think "The New Bay" would be an issue, as she intends to create a new retail experience for shoppers.

It's something she is very familiar with, as Central Walk owns Tsawwassen Mills, Mayfair Shopping Centre in Victoria, and Woodgrove Centre in Nanaimo. 

Liu is originally from Harbin, China, and moved to Shenzhen where she slowly built various small businesses selling wholesale goods. 

In 1994, she started Yijing Investment Development Co. Ltd, and then a subsidiary, Yijing Central Walk in 2002, which later bought a 1.5 million square foot mall in Shenzhen.

She is originally from Harbin, lives in BC

She and her brother sold it in 2019 to a Hong Kong-based real estate investment trust for C$1.25 billion. With that money she bought Woodgrove Centre in 2020, Mayfair Shopping Centre in 2021, and Tsawwassen Mills in 2022.

In 2014 Liu started coming to BC and became a Canadian permanent resident in 2017.

In hiring staff for the new malls, Liu will give priority to staff of The Bay, as well as suppliers and vendors. 

According to the company's press release, Liu gave a statement: 

"Central Walk Canada is planning to conduct a series of transformative initiatives aimed at fostering intergenerational connections, promoting active lifestyles, and empowering youth through meaningful engagement as part of this transaction," she said.

"We are evolving to serve Canadians better. We believe every Canadian family deserves a brighter future. Join us in this journey of growth and connection. Together, we can build a more vibrant, caring and forward-thinking multiculturalist community."

Sounds positive and idealistic... stay tuned to see if it happens...

The Bay May Live On Through Canadian Tire

Canadian Tire to buy The Bay's intellectual property for C$30M

Hudson's Bay isn't dead yet.

Canadian Tire is paying C$30 million to take over Hudson's Bay's intellectual property, including the iconic four tripes motif, and the retailer's coat of arms symbol.

While the deal needs court approval, it's a positive sign the department store will continue to live on through another Canadian brand.

The Bay's IP includes iconic HBC Stripes

"Some things are just meant to stay Canadian and we are honoured to welcome many of HBC's leading brands -- including the iconic HBC coat of arms and the Stripes -- into our Canadian Tire family," said Greg Hicks, Canadian Tire CEO and president in a statement.

"It's disheartening to witness the final days of another great Canadian retailer, and while the circumstances are unfortunate, we're proud to step in for customers."

Some shoppers eyeing deals, were visiting the department store a few times to pick up bed linens that were going for 50 percent off in recent days.

In March the 355-year-old retailer was granted creditor protection, and began selling its assets; according to court documents, there are 12 bids for 39 of its stores.

It is believed one of the bids may be from Liu Weihong, a billionaire who owns three shopping centres in British Columbia.

Back in April, on Xiaohongshu, Liu posted several videos saying she wants to "restore The Bay to its former glory."

Who will snap up the Granville department store

"Knowing that The Bay, this national brand that carries Canada's history, will collapse, I can't stand by and watch, you must do your best to do something, to save it, to let the Canadian spirit continue," she said in Mandarin. "Let the young generation in Canada fall in love with The Bay again."

But that might be difficult for her to revive The Bay now that Canadian Tire has bought the Canadian retailer's intellectual property.

Apparently Liu had also talked about buying up several department stores in British Columbia, Alberta and Ontario, and then splitting up the spaces into mini shopping malls, similar to ones in China. However, that's what The Bay had tried to do, giving brands an opportunity to set up their own boutiques within the department store.

That did not work for The Bay, and besides, people's shopping habits have changed that most people don't shop in physical stores much anymore. You can thank the internet and Covid-19 for that.

In the meantime shoppers have until June 1 to snap up whatever else they may want to buy at The Bay. When I was there last month, there was tons of merchandise still on the racks...

Canada's Oldest Company Files for Creditor Protection

The Bay in downtown Vancouver has been neglected for years

I guess it was going to happen eventually, but today Hudson's Bay Company, a department store that has a history dating back to 1670 has filed for creditor protection with the intention to restructure the business.

Last week I went to the Bay in downtown Vancouver to buy something and there were more staff than customers. In the summer I visited the department store's upper floors and it was even more dire. The year before that the elevators weren't working and I had to climb the stairs to get up and down. People with baby strollers and elderly people waited for the lift that never came.

Elevators were out of order, same with air con

Then the Vancouver Sun began writing about the above observations, but no one was around the address the issues, including the air conditioning not working.

These were all red flags that the company did not have enough cash flow to keep the stores operating.

So it wasn't too surprising to hear today's news, but also sad because it is the country's oldest goods purveyor and one would hope the owner, Hudson's Bay Co would not drive the Bay to the ground, though at the same time it needs to revamp its business; department stores are going the way of the dinosaur.

The company's president and CEO Liz Rodbell claimed US tariffs were to blame, but the deterioration of the Bay had been going on for years. Blaming the Trump administration seems a bit much. How about the Covid-19 pandemic changing the way people shop, and the items on the racks and shelves are not what customers want to buy.

The company plans to restructure

Nevertheless she is hoping for an injection of C$16 million could help the company, which has 80 stores across Canada to help the Bay weather the storm.

Chief financial officer for the Bay's parent company Jennifer Bewley, said in an affidavit filed in court that the business is having trouble making payments to landlords, service providers and has had to defer certain payments for many months.

She added the company is days away from failing to meet its payroll obligations if it doesn't receive more funding. It currently has 9,364 employees.

"Without the benefit of court protection, failure by Hudson's Bay to pay rent at its stores will result in a rapidly escalating chain of events, leading to lease defaults," she said.

So it's just as well the Bay will not be a part of Oakridge Park in Vancouver when it is finally built out, but the shopping complex has now lost a major anchor tenant...

Sam's Club Muscles its Way into Hong Kong

Sam's Club will extend shopping and delivery to Hong Kong

Hong Kong retailers will have massive competition coming soon, as warehouse megastore Sam's Club, owned by Walmart, will begin offering online shopping and delivery services, with free delivery for purchases over 599 yuan (US$83).

"So far there has not been online shopping for Hong Kong people. There will be a roll-out of such service with direct delivery within two months. But customers need to be a member... and memberships can't be shared with others," an employee familiar with the matter said.

The membership offers a one-year membership for two people at 260 yuan, while a premium membership at 600 yuan offers more benefits.

HKers already shop in Shenzhen for deals

The news of this retail development had some industry observers describing it as "a retail crisis".

Many Hongkongers are going north on the weekends to shop at Costco and Sam's Club already, and the latter's new service will make it even more convenient to take advantage of really cheap goods, from toilet paper to snacks and electronic goods.

The first Sam's Club outlet in China opened in 1996 in Shenzhen, and today it was 44 shops in 25 cities across the country.

Economist Simon Lee Siu-po, an honorary fellow at the Chinese University of Hong Kong's Asia-Pacific Institute of Business believes Sam's Club's new service will be a severe blow to local supermarket chains and HKTVmall, an online shopping platform.

"Sam's Club's offering is bulk purchase with cheap deals. With online shopping and delivery for Hongkongers, they no longer need to stock up food or necessities in local stores," he said.

People buy snacks, toilet paper, electronic goods

"Supermarkets and online platform HKTVmall will be hard hit. Coupled with internal troubles, this will be an aggression from abroad. I am afraid this will cause a retail crisis in Hong Kong."

He believed the only way to protect the local retail industry is to impose a sales tax.

Indeed HKTVmall has already taken a big hit -- its net profit fell 78.65 percent to HK$45.3 million (US$5.8 million) last year from HK$212.2 million in 2022.

In March company vice-chairman Ricky Wong Wai-hay predicted a fall in local consumption amid weakened sentiment.

"In parallel with the influence from the external and global economic and political environment, we anticipate a decline in the local consumer market... growth as in the past will be unlikely," he said.

It's going to be a tough road ahead for Hong Kong retailers. Local residents just want the cheapest stuff they can get as their priority; supporting local businesses has gone out the window...

Wandering Around Peranakan Joo Chiat Road

People live in these colourful Peranakan shop houses

Yesterday my friend took me to a colourful area in East Singapore called Joo Chiat Road. She described it as something akin to Happy Valley in Hong Kong, a little neighbourhood known for its Peranakan culture. 

These shop houses have various businesses

Peranakan means a person of mixed Chinese, Malay, Indonesian and Indian heritage, dating back to 15th century Malacca when Chinese traders married local women. These interracial unions led to the mixing of cooking too.

The Joo Chiat area is named after Chew Joo Chiat, a wealthy Chinese landowner in the early 20th century. A few years ago the area was very sleazy, but it's cleaned up or perhaps gentrified with quirky shops, boutiques and restaurants.

In addition there are many rows of shop houses, narrow small homes that have two or three stories. Peranakan shop houses are known for being very colourful and as a result make for ideal Instagram backdrops for those looking to pose for pictures.

A Singaporean designer with minimalist designs

Many shop houses are very old, with some still occupied by people, while shops can go for S$6-S$8 million, and will still need a lot of money for renovation. However, if you put in the investment and rent it out, you could still make your money back...

When we wandered the street we saw several vintage shops selling not only second-hand luxury fashion brands from clothes to handbags and Hermes scarves, but also jewellery like rings, earrings, and brooches. 

My friend pointed out when she lived in Nanaimo, British Columbia several years ago, she scoured the vintage stores in Ladysmith and bought brooches at a fraction of the price sold at these shops in Singapore. 

We also encountered some designers based in Singapore selling their clothes. One was originally from Tokyo who has lived in the Lion City for some 20 years and has a business creating fabric and clothes made of silk made by villages in Cambodia and Laos. The silk is light and airy with some batik-like touches, and they are idea for wearing in tropical places because they are loose and flowing.

Mini bottles containing shots of whisky

Another is run by a Singaporean designer who studied in Milan and so she is involved in the entire process from sketch to pattern to sewing. She said she likes being in the store on the weekends when there are more customers so that she can meet them and get feedback on her clothing that is made in China.

We also saw a natural wine shop that sold biodynamic wines with no sulfites, and had a selection of small bottles that had a shot of whisky in each of them. Another was a coffee shop that claims to use electro-magnetic waves to change the molecular structure of coffee or juice so that it tastes better. It's a curious concept but they claim it is used in food production to cut out the use of preservatives and wanted to use it on customer beverages. 

For dinner we headed to Blue Smoke, a restaurant where the chef-owner used to be in advertising. He used to cook Chiu Chow, but it didn't draw customers so now he smokes meats like beef brisket, and pork belly, and skate wing which is a slightly different cooking method, and adds a curry sauce for a spicy kick. 

Wood smoked beef brisket at Blue Smoke

But apparently his restaurant is better known for its off-menu items like fish porridge which intrigued us but we were already full! He likes to have people try the restaurant menu first, and get to know them before they know about the other food items, including chilli crab! Next time!

Hong Kong's Problem of Closures

FB Concern Group documents shop closures in Hong Kong

A Facebook group called "HK Business Closure News Concern Group" started documenting all the shops and restaurants that shuttered recently. Members could post pictures of places they saw that had closed or were closing, and others would comment that they shopped there, or ate there.

The Facebook group quickly garnered 100,000 members, then 200,000 then up to 315,000.  

But then on Wednesday the Facebook group announced that it would be "closing down" to the shock of many.

However the administrator clarified later that the group wasn't closing down, but in fact changing its name to "Hong Kong Stores News Awareness Group", changing the tone to be more neutral.

Some say this is because someone related to the Hong Kong government complained the group was focused on bad news stories and should stop doing this...

But what is wrong with documenting the fact that shops and restaurants are closing down? It is a public service announcement... 

Cronut King Leaves Hong Kong

Ansel at the Harbour City store in Dec 2019

Another eatery is shutting down in Hong Kong after four years in business. Called Dang Wen Li, it is the Chinese name for star pastry chef Dominique Ansel, best known for his creation of the cronut, a cross between a donut and croissant.

However, unlike his bakery in New York City where a new flavour is unveiled each month, Dang Wen Li only had the cronut available once a year in Hong Kong.

The classic pastries and HK-inspired cakes

Ansel came for the opening of the first location in Harbour City in December 2019, a fun small cafe that was very Instagram-friendly and was easy to get to from the Star Ferry in Tsim Sha Tsui. Most memorable was the hot chocolate with the marshmallow flower that "blossomed" as soon as it was placed in the hot drink.

The dessert creations were linked very closely to Hong Kong, with a cake that was shaped like the lemon tea juice box, but is actually Earl Grey bergamot cake, a "pineapple bun" that was actually a coconut pineapple passionfruit cake, and a raspberry mousse Japanese cheesecake that looks like a package of haw flakes.

In explaining the Hong Kong-inspired cakes, Ansel said he wanted to create "pastries that are inspired by the cultures and traditions of Hong Kong". 

However, they seemed quite gimmicky and I wondered how long they would last. In the beginning there were long lines at the store and the one at IFC that quickly opened soon after. And then a lot of money was poured into the flagship store on Queen's Road Central with its high ceiling and lots of seating.

Guava mousse cake for Christmas 2020

To entice people to stay longer, the newest location offered savoury dishes, including sandwiches and even a char siu egg croissant, and borscht soup. But people really came for the desserts.

One Christmas I ordered a guava mousse cake that had gorgeous red swirls much like a massive peppermint candy. Sadly it was only offered for one year. 

The gimmicky products continued to grow, and would include pecan and apple pies for Thanksgiving, and even a rectangular loaf of bread that was made with layers like a croissant and seasoned with sea salt. 

Meanwhile the viennoiserie (traditional pastries) did quite well, from croissants to pain au chocolat.

After I left Hong Kong, there are only two locations now -- the one in Central and another in Pacific Place in Admiralty.

Dang Wen Li is encouraging anyone holding its vouchers to use them before it closes at the end of January. It's too bad the bakery didn't even last for Chinese New Year and Valentine's Day... it's the cruel reality of business that it's got to cut its losses.

One wonders how the local partner, Upper East Holdings is doing. It also brought Sugarfina, Lady M and Tiffany Cafe to Hong Kong.

HK Decked Out but Not Enticing Visitors

All decked out by no people coming through in Hong Kong

Friends are reporting a lot of people on the streets of Hong Kong, but in terms of data, the Christmas season has been really quiet, with business slowing down significantly compared to last year when Covid-19 restrictions were still in place.

This Christmas more than 1.32 million outbound trips were recorded over the past three days, almost triple the number of visitor arrivals. Of the visitors who entered Hong Kong, 77 percent were from the mainland.

HK venues not big enough for Swift and Swifties

Anthea Cheung So-may, director of the Lan Kwai Fong Association, called for the government to hold more large-scale concerts and invite global star singers and bands to perform to attract more overseas tourists.

However, the national security law implemented in 2020 has made the city less desirable a place for artists to perform in, and also for international stars like Taylor Swift, they are looking for cities with venues large enough to hold their fans, which Hong Kong does not have at all. 

Meanwhile retail sector legislator Peter Shiu Ka-fai said the industry was affected by Hongkongers flying elsewhere for Christmas, while the holiday was not celebrated by mainlanders, and so not many crossed the border to shop.

"... overall, both the world economy and the Hong Kong economy are average... The spending power of mainland tourists was not as strong as before 2018," said Shiu.

Decorated malls not enough to entice shoppers

He called for the government to create more activities, events and offers to entice shoppers, both locals and visitors to spend in the city. Shiu asked for service to improve, particularly having a more friendly attitude towards customers.

This is tough when you feel like the situation is bleak... that said Hongkongers have that "Lion Rock spirit" and must persevere though this tough patch if they want the city to survive long term.

Palm Springs: Retail Woes a Harbinger of the 2024 Economy

Santa had no visitors yesterday late afternoon

Yesterday afternoon we went to a shopping mall called Westfield Palm Desert that we went to around the same time last year. It has a few anchor stores, JC Penny at one end, Macy's the other, and Barnes & Noble bookstore in the middle.

Last year it was pretty busy, lots of people starting their Christmas shopping with Black Friday sales after Thanksgiving. This year? Quite the opposite and perhaps a sign of what the US economy will be like in the coming months and year.

JC Penny was looking very dim and uninviting

We first hit Macy's and I remembered it being very busy last year, with long lines for the fitting room and cashier. This year there were only a handful of shoppers looking at the racks. I scored a dress that was originally US$79.50, and was knocked down 25 percent to US$59.62. 

Because it was on a rack with 30 percent off, the dress was further discounted to US$41.73, plus tax was US$44.96.

And if I don't like it, I can return it by January 31, 2024 as long as the tag is attached and nothing altered.

How to department stores even make money these days?

Maybe they made money from the woman in line behind me who was carrying a heap of clothing ready to buy.

The situation at JC Penny was even more dire -- the lighting was quite dim by around 5pm. It was also even emptier than Macy's. The atmosphere was just really sad, with hardly any staff around and people wandering around the aisles of bland-looking merchandise.

Hardly any shoppers around to snap up discounts

Even Santa Claus was having a slow day. The jolly man in the red suit was sitting on his throne waiting for kids to come take pictures so that their parents could send them to grandparents and relatives, but alas not one child came to tell Santa what he or she wanted for Christmas.

Granted it was November 30 and a weekday, but still!

If Westfield Palm Desert is a harbinger of what's to come, it's not looking good for the retail sector next year...

Harvey Nichols Bows Out of Landmark After 18 Years

Harvey Nichols bows out of Landmark shopping mall

After 18 years, high-end luxury retailer Harvey Nichols will be vacating its space in Hong Kong's Landmark shopping mall at the end of March, citing weak consumer sentiment.

Owned by Hong Kong-based Dickson Concepts (International), Harvey Nichols will be leaving the 60,000 sq ft of space over five floors empty, though it will continue to have a presence in Pacific Place in Admiralty, according to Dickson Poon group executive chairman.

Poon (left) cites weak consumer sentiment

"Consumer sentiment remains weak", while mainland Chinese tourists in the city are "no longer focused on shopping as they used to be before the pandemic," he said, citing weaker-than-expected retail spending during Golden Week holidays in May and October.

The closure of Harvey Nichols in Central is yet another blow to Hong Kong's retail sector, which has also seen Sogo department store shut its doors in Tsim Sha Tsui in March.

It is interesting to note that Landmark, owned by Hong Kong Land, has vastly diversified its portfolio with more of its office space converted into restaurants.

One new concept is called Forty-Five in Gloucester Tower featuring four restaurants, including the newly-opened Cristal Room by Anne-Sophie Pic and a private club. 

It's gotten to the point where the restaurants in Landmark are now competing amongst themselves for customers, which doesn't bode well for the sustainability of the dining establishments there.

Cristal Room by Anne-Sophie Pic in Landmark

But back to the impending departure of Harvey Nichols. It's a hard pill for Poon to swallow, having prided himself on buying the British retailer and bringing it to Hong Kong, and now it can't keep going in Central.

It's also a sign that people are looking for something other than material goods to make themselves happy, which is a good thing, or their spending power has weakened immensely. Time will tell which one it is.

(Almost) Free Lunch

Peri peri chicken with fries and a lemonade (not shown)

The South Granville Business Improvement Association enticed people to come to the neighbourhood this weekend, with street vendors set up in blocked off side streets, offering snacks to essential oils, jewellery and art.

South Granville is not an area I go to often, but went to visit a clothing shop celebrating its second anniversary. It sells Canadian designed leisure wear and the owner told me this year has been more challenging than last year coming out of Covid.

She said just opening a shop wasn't enough -- it had to look nice to entice people in, but also have good staff to chat with customers and encourage them to shop.

Was finding staff difficult?

For her, millennials were a group she could not understand. In job interviews, prospective candidates requested working three days a week, which made the owner wonder, don't they need to make money, or are their parents supporting them? But surely that won't last long?

She compared herself to them, recalling that she hustled several jobs in her younger years.

Nevertheless, her work ethic will put her in good stead, determined to find ways to get more business, and one key component is the shopping experience in the store. And what that looks like is something she will have to figure out; it may mean her spending more time in the store to meet customers, or hire someone who will be just as vested as her, which would be difficult.

Nevertheless, she is resolved to work her way out of the economic doldrums, though high interest rates and inflation aren't helping.

Afterwards I went to the nearby Meinhardt Fine Foods to take a look around and there was a long line for the deli section that was stocked with various baked goods, salads and deli items. 

I picked up a carton of oat milk and while paying for it, the cashier asked if I'd like a free chicken meal.

Sure!

Just around the corner from the entrance was a tent set up with a barbecue manned by many staff. There was peri peri chicken or beef smokies to choose from, and that came with fries and a glass of lemonade.

Score!

At first I thought I'd just bring this takeaway lunch home to eat, but it was too tempting to wait at 11.30am. The chicken was cooked through and the dry rub was not spicy at all. We were only given forks to eat it with, but I managed to clean it to the bone. The fries were thick enough and not salty which was good, washed down with lemonade with lots of crushed ice!

It was a delicious and almost free -- though several bees made a beeline for my lunch... I had to eat it quickly and yet try to hold myself back from swatting the bees away, worried they may sting me! 

Nordstrom's Closing Shop

The Nordstrom in Vancouver is shuttering in a few months

The Canadian retail scene is getting emptier with the news that Nordstrom is pulling out of the market completely.

After eight years of losing money annually, the American chain retailer is closing all its 13 stores across the country including Nordstrom Rack.

Even the discount stores are closing for good

Nordstrom is seeking bankruptcy protection. In its court filings, in 2022, Nordstrom's Canadian division sold about CAD$515 million worth of goods, but lost $72 million while doing so.

One retail consultant says Nordstrom scaled up too quickly without understanding the differences between customers in Vancouver, Calgary and Toronto, while another says the retailer misjudged customers here.

"They probably just overestimated how rich we are and how much we spend on luxury goods," said retail consultant Bruce Winder. "We just don't have as many people who would desire that kind of merchandise they needed to break even."

YUP. They had no idea how cheap Canadians are!

In addition Winder says, the age of the department store is over... so who is going to take over these massive multi-floor spaces that were meant to be anchor stores in shopping malls across the country?

One wonders how good the sales will be...

In the meantime people are looking forward to the sales that will be happening later this month. Many will be checking them out for any deals like hawks circling their prey...

Picture of the Day: Discounts Galore

Want to get outfitted for Christmas 2023?

My friend and I went to a shopping mall and checked out some stores we would normally not walk into, like Forever 21 -- cause we're no where near 21 anymore!

In the back of the store was one of several discount racks where I spied this dress left over from Christmas...

Anyone want to pick up their ugly Christmas outfit now in February?

This one's only US$15.00...

It's shocking how much unwanted clothing there is, and how low they have been marked down. At H&M there were T-shirts for under US$6.

There has to be a way to figure out how much meeds to be produced and at a decent price otherwise retailers can't make as much of a profit when it's marked down so much.