Hudson’s Bay will start liquidating its entire business and begin the process of closing all its stores pending a court approval.
On March 16, the Hudson’s Bay Company (HBC) announced its plan to liquidate products and begin the process of closing all its stores. The process has already started at the department store at the Pen Centre in St. Catharines, marking the slow disappearance of a well-established Canadian institution.
For centuries, Hudson’s Bay has been more than a retailer. Founded in 1670, it is Canada’s oldest corporation and is part of the country’s economic and cultural fabric. Its iconic striped blankets and flagship locations once symbolized stability, tradition and Canadian identity. Yet, the closure of the Pen Centre location — a long-standing anchor in Niagara’s largest shopping mall — shows that even the most enduring brands are not immune to evolving market forces.
Changing consumer behaviour
The company’s statement described the closure as part of a broader plan to “reshape its real estate footprint,” reflecting the harsh realities of the modern retail landscape. Consumers increasingly favour online shopping for its convenience and competitive pricing, eroding the traditional appeal of large, multi-floor department stores. High operating costs and the inability to adapt quickly have only compounded the pressure on HBC.
Ontario, which currently houses 32 Hudson’s Bay stores and accounts for more than half of the company’s Canadian workforce, will feel a disproportionate impact. The Pen Centre’s loss of Hudson’s Bay raises broader concerns about how malls will fill massive retail spaces and remain relevant in a digital-first economy.
A broader retail shift
Several Ontarians cite online shopping as the catalyst for the decline of Hudson’s Bay, noting that the habit of spending hours browsing department stores has given way to on-demand digital purchasing. The continued success of discount-driven department stores such as Walmart and dollar stores underscores consumers’ increasing prioritization of price over heritage or brand loyalty.
Malls across Canada are already pivoting. In many cases, large retail vacancies have been transformed into fitness centres, entertainment venues or multi-use spaces that blend shopping, dining and other services. The Pen Centre’s management faces the challenge of redefining its commercial offering in a way that reflects this new retail paradigm.
Legacy vs. modern retail realities
The decline of Hudson’s Bay also serves as a cautionary tale for legacy Canadian brands. Longevity does not guarantee resilience, especially in a marketplace increasingly dominated by agile, digitally native competitors. Amazon, for example, operates without the burden of physical retail spaces, offering vast product selections, aggressive prices and fast shipping — advantages that traditional department stores struggle to match.
The Canadian retail sector faces additional structural challenges: a smaller population spread across vast geographies makes large-format stores less viable. This reality has forced retailers to rethink how — and where — they operate. While HBC has experimented with smaller storefronts, luxury subsidiaries like Saks Fifth Avenue and online platforms, it remains unclear whether these efforts can meaningfully offset declining brick-and-mortar performance.
Looking ahead
For Canadians, the closure of Hudson’s Bay locations, especially in communities like Niagara, represents both economic disruption and the end of a familiar experience. Yet, it also signals a critical inflection point: Canadian retailers must evolve rapidly or risk irrelevance in a globalized, digitized market.
The Pen Centre store’s shuttering is not just the loss of a retail space — it reflects a retail model that no longer fits within Canadian consumer behaviour. As HBC’s iconic doors close, the industry is left grappling with an urgent question: how can Canada’s oldest and most recognizable brands adapt and compete in the next chapter of retail?