Hudson’s Bay Company finalized leases for seven new store locations in the Netherlands

TORONTO en AMSTERDAM, 2016-Jul-13 — /EPR Retail News/ — Hudson’s Bay Company (“HBC” or the “Company”) (TSX: HBC) is pleased to announce that it has finalized leases for seven new store locations in the Netherlands, in addition to the four locations previously announced. In aggregate, the lease agreements total approximately 141,800 m2 (1,526,000 sq. ft.) and include 10 Hudson’s Bay and a Saks OFF 5TH store in major markets. As previously announced by the Company, HBC intends to enter the Netherlands with up to 20 new stores over the next 2 years. HBC’s expansion into the Netherlands introduces two new exciting retail concepts to the Dutch market while leveraging the Company’s existing European business infrastructure.

Richard Baker, Governor and Executive Chairman of HBC, stated:
“We are very excited to announce these new locations in prime markets in the Netherlands for our Hudson’s Bay banner. The speed with which the leases are being agreed upon underscores the mutual willingness of the landlords, municipalities and HBC team to open the first stores, which we expect to occur in Q3 of 2017. In addition to bringing our exciting retail experiences to the Dutch customers, our entry will also create 2,500 store jobs and 2,500 construction jobs in the market. We look forward to announcing additional stores as we secure new locations.”

Jerry Storch, HBC’s Chief Executive Officer, commented:
“Combining exciting retail destinations with a best in class ecommerce platform is our main focus as we expand into the Netherlands. Our all-channel model will allow our customers to shop whenever, wherever and however they want. This, in combination with overall operational efficiencies and implementing best practices from our existing banners, will deliver a new, exciting experience for Dutch consumers. We are also making good progress on establishing our management structure and have already hired a number of very experienced Dutch executives into senior management positions.”

The Company expects to open Hudson’s Bay stores in the following locations:
HBC reached three lease agreements with a.s.r. Real Estate Investment Management for Utrechtsestraat 25-37 in Amersfoort, Grote Houtstraat 70 in Haarlem and Aalmarkt 22 in Leiden

Amersfoort, Utrechtsestraat 25-37
Amersfoort has an attractive historic center with a vast variety of shops. Built in 1934, the building has spectacular glass work in the ceiling and an impressive staircase, with entrances from the Utrechtsestraat and the Sint Jorisplein. It is located on the prime shopping street in Amersfoort. The Sint Jorisplein is an important access point with a parking garage of around 460 spaces. The building will be fully renovated before Hudson’s Bay opens its 11,000 m2 (118,000 sq. ft.) store for the people in Amersfoort and surroundings.

Haarlem, Grote Houtstraat 70
Haarlem is a well-known shopping and residential destination adjacent to Amsterdam, with a young and vibrant bar and restaurant scene. The historic department store of approximately 17,000 m2 (183,000 sq. ft.) is centrally located on the Grote Houtstraat, close to Gedempte Oude Gracht and the Gierstraat. The building will be renovated and transformed into a modern and attractive Hudson’s Bay.

Leiden, Aalmarkt 22
This monumental 12,500 m2 (135,000 sq. ft.) department store, located in the city center between the Aalmarkt street and the Breestraat, was built in 1930 and was completely renovated in 2014. Hudson’s Bay is an ideal anchor tenant to elevate the retail mix of the area. The basement includes a bike storage for 880 bicycles and can be used free of charge by the people of Leiden. The adjacent retail project Catharinasteeg will be completed in 2017.

Edwin van de Woestijne of a.s.r. REIM
“We are delighted with this innovative player in the Dutch retail market and we are looking forward to working together to improve the shopping landscape of Amersfoort, Haarlem and Leiden. Hudson’s Bay’s decision to enter a long-term commitment with a.s.r. demonstrates that our properties are in the right locations and that we are a strong retail partner.”

The Hague (Den Haag), Grote Marktstraat 48-50, Spuistraat 3-5
The building, owned by IEFC Berlage, is located in the heart of the prime shopping area in The Hague with entrances from the Grote Marktstraat and the Spuistraat. The building is undergoing a full renovation by IEF Capital, after which it will consist of five retail stores. Hudson’s Bay, with a store of 18,500 m2 (199,000 sq. ft.) will be the largest tenant.

Nechemja de Bruijn of IEF Capital stated:
“We see HBC’s entrance in the Dutch retail market as another confirmation that the prime locations in the Dutch cities are getting more and more popular, on par with many of the big cities in the world. We cordially welcome HBC to our retail complex in the vibrant heart of The Hague and look forward to the opening of the Hudson’s Bay store.”

Den Bosch, Schapenmarkt 2-4
The Company reached a lease agreement with Metroprop for Schapenmarkt 2-4 in Den Bosch. Den Bosch is a thriving city in the south of the Netherlands. The inner-city retail structure is a protected townscape and its heritage makes it an appealing and popular shopping destination. The building is a listed historical monument, curved along the shape of the street, and is located next to City Hall with a beautiful view from the top on the Sint-Jans Cathedral. The building will be transformed into a 9,300 m2 (100,000 sq. ft.) Hudson’s Bay store with direct access to the main shopping streets of Den Bosch.

Jos van de Mortel from Metroprop stated:
“We are very pleased that HBC has chosen this unique building for a Hudson’s Bay store in the Netherlands. The location has a rich history and is located in the city centre of Den Bosch. We are convinced that Hudson’s Bay is the perfect concept to enhance the historic attraction of Den Bosch.”The Company has also reached long-term lease agreements with CBRE Global Investors for Pensmarkt 8 in Den Bosch and Nieuwstraat 51-53 / Spiegelstraat 17 in Zwolle.

Den Bosch, Pensmarkt 8
The Pensmarkt is centrally located in the middle of the historical inner-city of Den Bosch across the Schapenmarkt, this unit of 1,600 m2 (17,000 sq. ft) will be part of the Hudson’s Bay at the Schapenmarkt. This is a true prime location which reflects HBC’s strategy to establish itself in key, high-traffic retail areas.

Zwolle, Nieuwstraat 51-53 / Spiegelstraat 17
Zwolle is a historic city located in the province of Overijssel. The availability of retail space in the dense city centre is scarce. Zwolle is expecting the arrival of a number of large international retailers in the next eighteen months which will make it even more attractive for customers. The arrival of the 12,000 m2 (129,000 sq. ft.) Hudson’s Bay store will further improve the success of Zwolle as shopping destination within the province of Overijssel.

Rik Eertink from CBRE Global Investors stated:
“Hudson’s Bay Company’s new department store format Hudson’s Bay is a unique long-term solution for respectively our prime inner-city locations in Zwolle and Den Bosch. The market entry of the Hudson’s Bay Company will positively shape the retail landscape in the Netherlands. I am very excited to welcome them as a tenant in our buildings and look forward to working together to make the banner a success in the Netherlands.”

Enschede, H.J. van Heekplein 85
The future 9,900 m2 (107,000 sq. ft.) Hudson’s Bay store will be located in the shopping heart of Enschede at the H.J. van Heekplein (H.J. van Heek plaza). Many national and international shopping chains are located in this popular area. Additionally, the ample parking facility under the plaza makes it the most important access point for shoppers. The property manager, Syntrus Achmea Real Estate & Finance, will refurbish the building to accommodate Hudsons’s Bay exciting store format.

Rene Vierkant of Syntrus Achmea Real Estate & Finance stated:
We are delighted with HBC as our new tenant in Enschede. We believe that a Hudson’s Bay department store will add something new and exciting in the local retail market. We are committed to the longevity and success of HBC in Enschede and are convinced that this is an ideal location as they look for key markets for their entry into the country.”

Over Hudson’s Bay Company
Hudson’s Bay Company is one of the fastest-growing department store retailers in the world, based on its successful formula of driving the performance of high quality stores and their all channel offerings, unlocking the value of real estate holdings and growing through acquisitions. Founded in 1670, HBC is the oldest company in North America. HBC’s portfolio today includes ten banners, in formats ranging from luxury to better department stores to off price fashion shopping destinations, with more than 460 stores and 66,000 employees around the world. In North America, HBC’s leading banners include Hudson’s Bay, Lord & Taylor, Saks Fifth Avenue, Gilt, and Saks OFF 5TH, along with Find @ Lord & Taylor and Home Outfitters. In Europe, its banners include GALERIA Kaufhof, the largest department store group in Germany, Belgium’s only department store group Galeria INNO, as well as Sport arena. HBC has significant investments in real estate joint ventures. It has partnered with Simon Property Group Inc. in the HBS Global Properties Joint Venture, which owns properties in the United States and Germany. In Canada, it has partnered with RioCan Real Estate Investment Trust in the RioCan-HBC Joint Venture.

Forward-Looking Statements
Certain statements made in this news release constitute forward-looking statements within the meaning of applicable securities laws, including, without limitation, statements regarding the Company’s plans to expand its European presence to the Netherlands by opening up to 20 stores over the next 24 months, the Company’s expectation that such stores will launch in the summer 2017 and operate under the Hudson’s Bay and Saks OFF 5TH banners, long term leases for up to 20 store locations will be finalized in the near future, and the benefits that are expected to result from the expansion into the Netherlands, including the creation of new jobs. Often but not always, forward-looking statements can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “believe”, “estimate”, “plan”, “could”, “should”, “would”, “outlook”, “forecast”, “anticipate”, “foresee”, “continue” or the negative of these terms or variations of them or similar terminology.

Although HBC believes that the forward-looking statements in this news release are based on information and assumptions that are current, reasonable and complete, these statements are by their nature subject to a number of factors and risks that could cause actual results to differ materially from management’s expectations and plans as set forth in such forward looking statements for a variety of reasons. Some of the factors and risks – many of which are beyond HBC’s control and the effects of which can be difficult to predict – include, among others – (a) the risk that HBC is unable to finalize long term leases for up to 20 locations in the Netherlands, (b) the risk that the expansion into the Netherlands requires capital expenditures in excess of those currently anticipated and/or more than 24 months to complete, (c) the risk of introducing new brands into new markets and of doing business abroad, (d) the risk that the anticipated benefits from the expansion into the Netherlands cannot be realized, (e) credit, market, currency, operational, liquidity and funding risks generally, including changes in economic and geopolitical conditions, interest rates or tax rates, and (f) risks and uncertainties relating to information management, technology, supply chain, product safety, changes in law, competition, seasonality, commodity price and business.

HBC cautions that the foregoing list of important factors and assumptions is not exhaustive and other factors could also adversely affect its results. For more information on the risks, uncertainties and assumptions that could cause HBC’s actual results to differ from current expectations, please refer to the “Risk Factors” section of HBC’s Annual Information Form dated April 28, 2016, as well as HBC’s other public filings, available at www.sedar.com and at www.hbc.com.

The forward-looking statements contained in this news release describe HBC’s expectations at the date of this news release and, accordingly, are subject to change after such date. Except as may be required by applicable Canadian securities laws, HBC does not undertake any obligation to update or revise any forward-looking statements contained in this news release, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on these forward-looking statements.

MEDIA CONTACTS:

Citigate First Financial
Marieke Heringa
+31-6-11327533
marieke.heringa@citigateff.nl

Ingrid Prins
+31-6-51592484
ingrid.prins@citigateff.nl

Hudson’s Bay Company
Andrew Blecher
+1-212-391-3179
andrew.blecher@hbc.com

Gerd Koslowski
+49-(0)221-223-5595
gerd.koslowski@kaufhof.de

Source: HBC