Picture, for a moment, the last time you needed to purchase a new outfit or piece of clothing.
Perhaps it was for an upcoming formal event, like a wedding, and you needed a new suit or dress.
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Maybe you were in search of a new set of sneakers or other activewear for a hobby you’d recently picked up.
Or maybe you were simply updating your closet, and needed a new pair of jeans or some other reliable standby.
Like so many of us, you probably started your search online.
Buying clothes on the internet is not such a new trend, but it’s been steadily growing every year.
It’s estimated that about 57% of internet users around the globe buy at least some portion of their apparel online, and over 20% of all fashion sales come from e-commerce purchases.
Hudson’s Bay is closing its final stores in Canada.
Image source: Bloomberg/Getty Images
Brick-and-mortar fashion is a challenge
While business may be booming on the internet, business in stores is quite a different story.
Brick-and-mortar fashion retailers struggle with several unique challenges.
For instance, these stores must take on a lot of inventory to please a wide swath of customers.
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They must keep many different sizes, colors, styles, and sometimes brands in stock at all times to generate sales. But it’s difficult to sell every single piece of inventory, especially in a timely manner before the next season of clothing comes flying in.
This leads to waste and unmet sales.
A lot of clothing is also made overseas, especially in China, which is now taxed heavily as a part of Trump’s new tariff plans.
And of course, there are recurring expenses, such as utilities, rent, and labor, which continue to drag on already-small profit margins associated with running a clothing store.
Historic retailer closing all stores
Even if a retailer has time on its side, it’s not always enough to maintain a business presence.
Such is the case with Hudson’s Bay, one of the oldest retailers in North America.
Hudson’s Bay is one of Canada’s top department stores; it sells upscale fashion, accessories, and home goods.
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But in March, Hudson’s Bay said it would permanently close 73 stores, two Saks Fifth Avenue stores, and 13 Saks Off 5th stores.
It also filed for the Canadian version of Chapter 11 bankruptcy.
Hudson’s Bay had hoped to continue running six stores, including a Saks Fifth Avenue, but has since run into trouble.
The retailer admitted in late April that “a viable bid for the current six-store model is unlikely,” and it will begin the process of shutting down all remaining stores.
It’s estimated that over 9,300 jobs are at risk of elimination due to the closures.
It will begin liquidating these stores and run in-store sales, with discounts of up to 70% on inventory, starting April 25.
All stores will be closed by June 15, 2025.
