June 5, 2018
by Daphne Sorenson
Hudson’s Bay—the parent company of Saks Fifth Avenue and Lord & Taylor—is closing about 10 Lord & Taylor stores, including the landmark Manhattan location, by 2019. Meanwhile, Hudson’s Bay is selling online retailer Gilt Group to Rue La La at an undisclosed sum. Hudson’s Bay bought Gilt Groupe in 2016 for $250 million.
In a statement, Hudson’s Bay said the closures were because of “Lord & Taylor’s increasing focus on its digital opportunity and [Hudson’s Bay] commitment to improving profitability.” The Lord & Taylor location on Fifth Avenue in Manhattan opened in 1914. Hudson’s Bay sold the landmark building to WeWork for $850 million. In November 2017, Walmart announced that Lord & Taylor will have a flagship store on Walmart.com.
The Lord & Taylor closings are another example of how brick-and-mortar fashion retailers are struggling in the midst of growing trends of online shopping. In September 2017, Neiman Marcus announced that it was closing 10 of its 37 Last Call discount stores. The year 2017 also saw the demise of Bebe stores in the United States.
And things aren’t getting better. Ascena Retail Group—the parent company of Loft, Lane Bryant, Ann Taylor, Dress Barn, Catherines and Maurices—will close about 500 stores in 2018. J. Crew, Gap, Abercrombie, Bon-Ton, Crocs, Michael Kors, Guess, Macy’s, David’s Bridal, Payless and Hot Topic are also struggling financially and are expected to close several stores in 2018.