Head of Lane Crawford to be CEO of The Bay

Just 2 weeks after HBC has been acquired by Lord & Taylor, Richard Baker is moving swiftly to put some of the best retail players in the business to revamp the Hudson Bay Company. The newly appointed CEO of HBC, Bonnie Brooks (a Canadian native), was the President of the Hong Kong fashion group Lane Crawford Joyce Group since 2003.

If you’re not familiar with Lane Crawford, they are one of the most well-established department store chains in Hong Kong on par with our Canadian counterpart Holt Renfrew or Ogilvy. Under Brooks’ management, “the Lane Crawford group has tripled its business in the last five years and expanded its scope beyond Hong Kong and Macau into China, Japan, Taiwan, Singapore, Malaysia, Thailand and Indonesia,” according to WWD.com.

Baker says that there’s a gap between The Bay and Holt Renfrew, and he wants to fill that gap, but many Globe and Mail commentators were skeptical. Raising the usually affordable Bay prices might drive consumers away even if they were offering a better selection of brands. This is especially true with the failed project of Complexe Les Ailes in downtown Montreal where they were offering high end brands with considerably high price points for shoppers. Toronto-based Fairweather Group bought Complexes Les Ailes in 2005 and the upper levels have since been turned into office space.

Bringing in a luxury player and turning The Bay into a brand that sits between The Bay (the old one) and Holt Renfrew will prove to be tricky. Here’s a pricing breakdown between the two.

Holt Renfrew: Carries ready-to-wear and some bridge collections. $200-$5000 on average.
The Bay: Carries fast fashion, local, and some bridge collections. $20-$300 on average.

A premium price point would probably be somewhere between $75-$1000, if they indeed intend to offer better brands. However, I don’t know why this hasn’t been mentioned but what about Simons? They clearly have that premium price point – offering unique different brands, established an attractive shopping experience, while also offering a chance to pick higher quality brands. The demographic is however geared towards 18-25 year olds, while The Bay is probably targeting 25-35 yr olds. If anything, the new Bay (or Lord & Taylor) should perhaps take a cue from Simon’s and just make the experience a little more fun and luxurious without alienating their intended consumers.

Some might scoff at the idea of paying more for clothes, but these are people who don’t care for quality or don’t know what quality clothing is. What with the way stores are churning out new stock every month, it’s no wonder the general public demand cheap clothing. But I really think all this fast fashion lifestyle will turn around bite them in the butt. Soon people will tire of keeping up with trends (especially as we get older) and we would eventually want something durable and trendless. Fashion designers are already working towards seasonless collections, so “trends” per se are becoming obsolete. Therefore, stores will now have to make up for their seasonless collections and improve elsewhere such as price point, quality, branding, service and consumer experience.

So the appointment of Ms. Bonnie Brooks does inspire hope for The Bay brand, or really just the department store experience as a whole. We’re in serious need of quality stores in Montreal, and despite my initial reactions of The Bay possibly losing its brand name and appeal, at least they’re making an effort in changing it for the better.