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| 1896 building to be Saks |
Hudson’s Bay Co. has surprised business and consumer interests this morning (Monday, January 27, 2014) by announcing that it will open a Saks store at the corner of Yonge and Queen Streets in the iconic old building that once housed the Robert Simpson Company. The move appears to be motivated at least in part by the announcement that another U.S. retail name, Nordstrom, will occupy the former Sears (and previously Eaton’s) store in the Eaton Centre. It was also announced that Hudson Bay will open a Saks at the Sherway Gardens Mall in Mississauga. As part of the deal, Hudson Bay will sell the Yonge and Queen property and an adjoining office tower to the owner of The Toronto Eaton Centre, Cadillac Fairview. Hudson Bay will then lease back the store and tower for a 25 year period with an option to renew. The decision to open Saks at Yonge and Queen seems to put on hold for the moment the plan to open a Saks at the The Hudson Bay site at Yonge and Bloor Sts. The Globe and Mail reports that HBC chief executive officer Richard Baker said that Cadillac Fairview CEO John Sullivan convinced him to roll out Saks at the Queen Street store, where it will share space with Hudson’s Bay (previously called the Bay.) HBC acquired U.S.-based Saks Inc. last year for $2.4-billion. The suggestion is that Cadillac Fairview offered Hudson Bay an offer it found very difficult to refuse.