ZELLERS TO EXPAND STORE FOOTPRINT ACROSS CANADA

HBC Raising Additional Capital to Further Invest and Grow Businesses

TORONTO, May 23, 2023 /PRNewswire/ - Hudson's Bay today announces the expansion of its iconic Zellers brand across Canada, increasing the store's footprint in cities across the country. The expansion is also marked by further investment in the operating business at large via significant liquidity to enhance the company's offerings.

With the launch of its first e-commerce site and select stores within Hudson's Bay earlier this year, Zellers is now setting its sights on its next locations. Initially through a series of pop-up boutiques within Hudson's Bay stores, Zellers intends to open larger footprint stores in some or all of those same locations. The first pop-up will launch at Hudson's Bay's flagship Queen Street store in June, with up to an additional 20 pop-ups expected to open in August. These pop-ups will effectively measure customer response in each market to determine the best fits for the Zellers store experience.

"We have always said that we will listen to Canadians, and they will tell us where to grow," says Sophia Hwang-Judiesch, President, Hudson's Bay. "With these pop-ups, our expansion strategy will be fueled by the interest and feedback from our customers across the country."

At the heart of the Zellers experience is its price philosophy: everyday low prices. Reflecting a product assortment built on three pillars - quality, design, and value - Zellers serves customers across key lifestyle categories, including kitchen and bath, accent furniture and home decor, organization and storage, baby and kids toys and apparel, pets, and apparel basics for men and women.

HBC, the holding company of investments and businesses that include Hudson's Bay and Zellers, as well as Saks Fifth Avenue and Saks Off Fifth, also announces today that it has raised $240MM of additional liquidity to further invest in and grow its operating businesses. With an immense opportunity for growth in its retail markets, HBC recognizes that this capital will strengthen the company's strategic position while also taking advantage of the opportunities being created as other retailers exit the Canadian market.

"As we diversify our consumer offerings, we are strongly positioned to expand on the retail experience customers have come to expect from Hudson's Bay, Saks Fifth Avenue, Saks Off Fifth and now Zellers," says Richard Baker, Governor, Executive Chairman and CEO of HBC. "With this incremental liquidity, we will strengthen our businesses and build upon the great foundation we have established."

One of HBC's most beloved brands, Zellers holds a special place in Canada's maple leaf-shaped heart. With a brand new zellers.ca website and 25 locations (to start!) within Hudson's Bay stores across the country, customers can expect a helpful, playful shopping experience packed full of low prices day in, day out. With a core focus on design and value - and a hint of the nostalgia that Canadians know and love - Zellers is gearing up to become the new go-to, from lifestyle to home and almost everything in between. 

Hudson's Bay helps Canadians live their best style of life. Operating thebay.com featuring Marketplace, one of the largest premium life & style platforms in Canada, with a seamless connection to a network of 83 from coast to coast, Hudson's Bay has established a reputation for ́́́́́́֜́quality and style through an unrivalled assortment of products and categories including fashion, home, beauty, food concepts and more. Follow us on our social media channels: Instagram, Facebook, Twitter, TikTok.

Hudson's Bay operates under the HBC brand portfolio. Founded in 1670, HBC is North America's oldest company. The signature stripes are a registered trademark of HBC.

HBC is a holding company of investments and businesses at the intersection of technology, retail operations, and real estate. It is the majority owner of iconic e-commerce companies: Saks, a leading online destination for luxury fashion; The Bay, a Canadian e-commerce marketplace; and Saks OFF 5TH, a premier luxury off-price e-commerce company offering top brands at the best prices. These businesses were established as separate operating companies in 2021. HBC also wholly owns Hudson's Bay, the operating company for Hudson's Bay's brick-and-mortar stores, as well as SFA, the entity that operates Saks Fifth Avenue's physical locations, and O5, the operating company for Saks OFF 5TH stores.

With assets spanning top markets and prime locations across North America, HBC owns or controls—either entirely or with joint venture partners—approximately 42 million square feet of gross leasable area. HBC Properties and Investments, the company's real estate and investments portfolio business manages these assets along with additional real estate offerings, including Streetworks Development, its property development division.

Founded in 1670, HBC is North America's longest continually operating company and is headquartered in New York and Toronto. For more information visit: www.hbc.com.

SOURCE Hudson's Bay