Hudson's Bay to close up to 10 Lord & Taylor stores, including Fifth Avenue in New York
Hudson's Bay Co. will close up to 10 Lord & Taylor stores, including the Fifth Avenue location in New York City, as department stores grasp for stability amid retail upheaval.
The retailer also said Tuesday that it would sell e-commerce site Gilt as it aims for greater profitability.
The decision to close the Lord & Taylor store on Fifth Avenue comes after the company recently decided to sell the property to co-working real estate firm WeWork.
Hudson's Bay had originally intended to maintain a Lord & Taylor store in part of the space it sold to WeWork. But that plan has been abandoned.
"This reduced store network will allow new leadership to re-think the model and better position Lord & Taylor for future success," Hudson's Bay said in a statement.
The company hopes to "better balance the brand's brick and mortar presence with its online channels and increase profitability."
Asked for a list of where closures would occur, Hudson's Bay spokesperson Meghan Biango said in an email that the company would "provide an update on additional specific locations when appropriate."
The closures could represent up to about 1 in 5 Lord & Taylor stores. The company said it would close the locations through 2019.
The move comes amid declining sales for Hudson's Bay's 488 stores, which include Saks Fifth Avenue, Hudson's Bay, Lord & Taylor and Saks OFF 5th. Sales at stores open at least a year fell 0.7% in the quarter ended May 5.
Gilt, a member-based digital shopping service, has been sold to e-commerce outfit Rue La La. Terms of the deal were not disclosed, but Rue La La said it would hire more than 150 workers to operate Gilt in New York, Boston, Kentucky and elsewhere.