The Future of Hudson’s Bay: Adapting to Modern Retail’s Pressures

by | Mar 14, 2025

A medium shot of a vintage-style, cream-colored Hudson's Bay Company General Store building in Canada. The building features large, multi-paned windows on the ground floor and smaller windows on the upper floor, all framed in dark wood. A sign above the entrance reads "HUDSON'S BAY C" with "GENERAL MERCHANDISE" written beneath it in smaller letters. The "C" is partially obscured by a decorative, circular emblem. The building is captured at a slight angle, showing a portion of the sidewalk and a tree to the right. The sky is overcast. People are standing outside the store.

March 11, 2025 | CTV News via UVic News

A recent article highlights the challenges facing Hudson’s Bay, Canada’s oldest retailer, as it files for creditor protection, marking a pivotal moment in its 355-year history. This move comes as the company faces significant financial pressures, including subdued consumer spending, trade tensions between the U.S. and Canada, and post-pandemic declines in downtown store traffic. The restructuring process aims to stabilize Hudson’s Bay’s operations while it navigates mounting debts and declining sales.

This situation is reminiscent of other iconic retailers that have struggled to adapt, such as Sears and Toys ‘R’ Us. Hudson’s Bay’s challenges underscore the need for innovation and customer-centric strategies in retail. As the company navigates this uncertain period, insights from experts like Dr. Mark Colgate offer valuable perspectives on what it takes to thrive in modern retail.

Dr. Colgate, a professor at the University of Victoria’s Gustavson School of Business, emphasizes the critical importance of enhancing both in-store and online customer experiences. He stresses that seamless integration between these channels is essential for the retailer’s survival. Colgate’s expertise in service excellence underscores the broader significance of customer satisfaction in retail strategy. His analysis suggests that by prioritizing exceptional customer experiences, retailers like Hudson’s Bay can foster loyalty and drive sales, even in today’s challenging market conditions.

As an Associate Dean and Professor of Service Excellence at the Gustavson School of Business, Dr. Colgate specializes in service excellence, financial services marketing, and sports coaching. His research, featured in top journals like Sloan Management Review and Journal of Service Research, has advanced our understanding of great customer service. Colgate is known for his innovative teaching style, blending theory with real-world applications to help businesses deliver top-notch customer experiences. He has worked with numerous organizations to boost customer satisfaction and performance, and his books, such as The Science of Service, offer practical insights into service delivery and leadership coaching. For more of Dr. Colgate’s scholarly work, visit UVicSpace.