TCO - Hudson's Bay Lord & Taylor Transition Highlights Department Store Crunch
Introduction
Hudson's Bay Company's (HBAYF) decision to unload its struggling US department store Lord & Taylor for only $100 million to online apparel renter Le Tote should startle investors. While the price may cause this divestiture to appear to be an acknowledgement of another department store failure, the new concept presents an idea for bringing a fast-growing online business as a new tenant to US malls. Looking back at the last few years of department store operating trends, investors should understand the magnitude of decline in total department stores and comp-store sales. Be