Hudson’s Bay is on track in the Netherlands, the company’s marketing director Edo Beukema states after a lot of criticism. He says there is no truth to the rumour the department store chain is planning to leave, but it will adjust its marketing approach and pricing.
“We have reached our base scenario”
The Canadian department store chain entered the Dutch market after V&D’s demise and is now defending itself against criticism and negative rumours in a Financieel Dagblad interview. The enormous investments are a huge financial cost for the parent company and consumers have labeled the stores as too frigid and expensive. “They feel our pricing is too high and we have no brands with lower pricing, one of the things we will alter starting in January”, Beukema admitted.
Nevertheless, things are going well for the newcomer in the Netherlands, he insisted. “I am definitely not dissatisfied. We have reached our base scenario and are well on our way to realizing our plans. Our audience is there and we notice an uptick in sales over the past few weeks. In the first few weeks, many people just came by to check out the stores.”
There is still room for improvement: the chain will also focus on traditional media, like newspapers, aside from its digital marketing. It will also alter its product range, with cheaper brands (to lower the price threshold and improve its price perception) and requested brands and cosmetics.
The other adjustments will depend on a store-to-store basis: in Den Bosch, it will add a larger restaurant area. “We need to continuously adjust. I also believe we are edging towards a winning team among our employees, although some may still need a bit of coaching.”
“We will still be here in three years’ time”
Despite the slower remodeling operations, the planned store openings will still occur, Beukema committed in the newspaper. There are ten Dutch Hudson’s Bay department stores and 2 Saks OFF 5TH outlet stores now. The company will open another four Hudson’s Bay stores in 2018 and another one in Utrecht in 2019.
Beukema does not think the rocky start is an issue: “There is also the optimal scenario, but 80 % is going very well. I think it takes three years to reach mature growth and from that point onward, we will grow alongside the inflation. We will have hit the bull’s eye in three years’ time.” The interview is also meant to squash any rumours regarding Hudson’s Bay’s desire to pull the plug on its European activities entirely. The interview should also help ease its 2,000 employees’ mind. “We will still be here in three years’ time. I’ll wager a krate of very good wine on that”, he added.
Hudson’s Bay shareholder Jonathan Litt, who is not happy with the Canadian parent company’s losses, claims the group is considering a European divestment, something he strongly backs. Other retail experts also question whether Hudson’s Bay can succeed in Europe.
