TORONTO, NEW YORK and COLOGNE, 2016-Jul-04 — /EPR Retail News/ —Hudson’s Bay Company (“HBC” or the “Company”) (TSX: HBC) today announced the first five locations for its premium off-price banner Saks Fifth Avenue OFF 5TH in Germany. The introduction of Saks OFF 5TH in the European market will launch with a flagship store in Düsseldorf, with further stores in prime city center locations in Frankfurt, Stuttgart, Heidelberg and Wiesbaden. The stores are currently expected to open during the summer 2017.
Jerry Storch, HBC’s Chief Executive Officer, stated “We see great opportunities for the premium off-price shopping experience offered by Saks OFF 5TH as a new concept in the retail market. Saks OFF 5TH will complement our existing German department store banners and will further accelerate the growth of HBC Europe. We are confident that the introduction of Saks OFF 5TH will resonate with German consumers and enhance the shopping experience within these city centers by introducing an exciting new retail format.”
The Carsch-Haus in Düsseldorf, an established fashion destination, will be the first to open and become Saks OFF 5TH’s flagship store in Germany. For the Saks OFF 5TH locations in Frankfurt, Stuttgart, Heidelberg and Wiesbaden, HBC will convert stores currently operating under the Sportarena banner, making significant investments during the process. GALERIA Kaufhof will continue to offer sports equipment as part of its merchandise assortment.
All employees of Carsch-Haus and Sportarena will receive a job guarantee for equivalent positions within either Saks OFF 5TH in Germany or GALERIA Kaufhof. The European business of Saks OFF 5TH will be managed out of Cologne.
Wayne Drummond has been named General Manager of Saks OFF 5TH Europe. Mr. Drummond, who has almost 30 years of experience in the department store sector, was previously responsible for numerous categories within HBC’s North American Department Store Group (DSG), including men’s, kids, women’s and Topshop/Topman product assortments. Berna Bartosch joins the team as Chief Merchandise Officer of Saks OFF 5TH in Europe. The former TJX Europe (TK Maxx) purchaser brings extensive merchandising expertise and will lead the Company’s merchandise strategy. The management will report to Don Watros, President of HBC International and Head of the Supervisory Board of GALERIA Kaufhof.
Over time, HBC plans to open up to 40 Saks OFF 5TH stores in Germany. The Company is also preparing to introduce the banner into the Netherlands in 2017. Saks OFF 5TH features an impressive selection of designer fashion, accessories, and footwear for men and women, along with home merchandise, boasting in-season and on-trend offerings from more than 800 leading designer brands at incredible prices. Saks OFF 5TH operates more than 100 stores in the United States and Canada, and saksoff5th.com. In 2015,15 new Saks OFF 5TH stores were opened in North America.
About 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 allchannel 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, and Belgium’s only department store group Galeria INNO.
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.
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 open up to 40 Saks OFF 5TH stores in Germany, the Company’s expectation that the first five stores will open in the summer 2017, the benefits that are expected to result from the expansion of the OFF 5TH banner into Germany and the expectation that all employees will receive a job guarantee. 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 open up to 40 Saks OFF 5TH locations in Germany, (b) the risk that the expansion requires capital expenditures in excess of those currently anticipated, (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 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.
Hudson’s Bay Company
Phone: (212) 391-3179
FOR THE GERMAN MEDIA:
Dirk von Manikowsky
Hering Schuppener Consulting
Phone: +49 211 430 79-265
HBC Europe / GALERIA Kaufhof
Phone: +49 (221) 2235595