At Hudson’s Bay Co.’s shareholder meeting in Toronto Tuesday, governor-executive chairman Richard Baker said the company is on the hunt for more real estate as part of its growth strategy.
Baker wouldn’t say whether that might include a purchase of German department store chain Kaufhof; last week sources told Reuters that Hudson’s Bay would be investing heavily in Kaufhof.
In February the company said it would leverage its American Saks Fifth Avenue and Lord & Taylor real estate for a Real Estate Investment Trust.
Hudson’s Bay’s real estate holdings and Baker’s real estate savvy are becoming a signature of the company’s growth strategy. Of course, real estate can become an addiction, and, beyond that, for a retailer, possibly a distraction.
“The advantage of our new structure going forward allows us to potentially go out and acquire other businesses that have a real estate component,” HBC governor Richard Baker said after the company’s annual meeting on Tuesday.
That sounds like the company’s retail business is nearly beside the point. Perhaps a more interesting question is whether Hudson’s Bay will indeed be taking over at least some of the German department store Kaufhof and whether the company is enticed by Kaufhof’s real estate or its retail business (or both).