Hudson’s Bay takes its brand upscale
As competition within the luxury retail market in Canada heats up, Hudson’s Bay is not sitting on the sidelines. It has been bolstering its efforts to attract well-heeled shoppers through strategic partnerships, branding efforts and an increased focus on social media. Though the country’s oldest retailer has spent the last few years dusting off its brand, in 2013 it continued to generate momentum in new and exciting ways, including a blockbuster deal to buy Saks Fifth Avenue for $2.4 billion.
• In the summer the retailer launched an online series on B-Insider.com that documented four twenty-something men as they embarked on a 49-city tour in a branded RV. Decked out in items from Hudson’s Bay signature Stripes Collection, the men participated in an array of outdoor activities. The objective of the series, titled “Project Adventure” was twofold: engage millennials in social media and remind customers of the retailer’s roots and history. And it delivered. Over the course of the series, unique visits on B-insider increased by 400% and #ProjectAdventure generated more than 15 million Twitter impressions . “It was a great way for us to literally fly the signature striped flag all across the country and get some great exposure,” says Patrick Dickinson, senior vice-president, core marketing and brand strategy North America at Hudson’s Bay.
• In keeping with the retailer’s move upmarket, it introduced a contemporary, streamlined word mark that appears across in-store, online, marketing and media materials, replacing the large, stylized ‘B’. “We wanted to make sure that people understood we were communicating the new, refreshed and renovated brand,” says Dickinson. And after a competitive audit and consumer research, the retailer revamped its loyalty program earlier this year. Hudson’s Bay Rewards is an easy-to-follow, three-tiered program—Rewards, Rewards Plus and VIP—that enables shoppers to earn more points faster. The more shoppers spend, the higher they move in the tier system and the more points they earn per spend.
• In what was viewed as a response to Nordstrom Rack and Holt Renfrew’s HR2 model, Hudson’s Bay opened a 25,000 sq. foot outlet store in the new Premium Outlet mall outside of Toronto. The store offers “mid-tier” brands such as Calvin Klein, Guess and DKNY, among others, as well as selected items from The Room, HBC’s high-end boutique. As part of its strategy to become a “house of brands,” and keeping in line with its emphasis on high-end labels, Hudson’s Bay announced a partnership with famed luxury bridal banner Kleinfeld. Next year Hudson’s Bay will open a 20,000-square foot bridal boutique within its Toronto flagship location selling designer gowns that range from $1,200 to $30,000.
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