March 18, 2025 – Toronto, Canada – Hudson’s Bay, the iconic 354-year-old Canadian retailer and a staple anchor in malls across Canada, is officially closing its doors for good. The company announced its decision to liquidate all of its stores following an inability to secure sufficient capital to keep the business afloat. Clearance sales will begin next week at all 80 Hudson’s Bay locations, as well as at the three Saks Fifth Avenue stores and 12 Saks Off 5th outlets it operates across Canada.
Once a hallmark of Canadian retail, Hudson’s Bay’s collapse marks the end of an era in the country’s retail history. The company, known for its wide range of products from fashion to home goods, has been grappling with a combination of factors that have contributed to its financial downfall. According to company executives, sluggish consumer spending, a decline in foot traffic post-pandemic, and the continuing U.S.-Canada tariff war are among the leading reasons for the company’s closure.
The U.S.-Canada trade tensions, which began under the Trump administration, have continued to leave lasting scars on businesses in both countries. Hudson’s Bay highlighted the significant toll that the back-and-forth tariff dispute has taken on their bottom line. In particular, the retailer pointed to the increased cost of imported goods, which were subjected to high tariffs after President Donald Trump imposed duties on Canadian imports. Canada retaliated with duties on $20 billion worth of U.S. goods, raising prices for both Canadian consumers and retailers.
The ongoing tariff war between the two countries has exacerbated inflationary pressures, already heightened by rising borrowing costs. For Hudson’s Bay, these external challenges compounded internal struggles such as declining sales, shifting consumer behavior, and increasing competition from online retailers and discount stores. As a result, the company, which had long been a pillar of Canadian shopping culture, found itself unable to compete in an increasingly hostile market.
“While we have made every effort to stay afloat, the persistent economic pressures, combined with the effects of the tariff war, have made it impossible for us to continue operating,” said a statement from Hudson’s Bay leadership. “This is a deeply painful decision, but we must face the reality that these external forces, coupled with changes in shopping habits, have left us no choice.”
The liquidation process will affect not only the 80 Hudson’s Bay stores but also its Saks Fifth Avenue and Saks Off 5th locations in Canada, which will also shut down. Analysts have noted that the shuttering of these stores will leave a significant gap in many Canadian malls, where Hudson’s Bay has been an anchor tenant for decades.
The decision to close the company follows a period of attempted restructuring and efforts to revive the business. However, despite efforts to modernize its offerings and make inroads into the digital retail space, Hudson’s Bay was ultimately unable to overcome the shifting dynamics of the Canadian retail landscape.
The closure of Hudson’s Bay is expected to have widespread implications for the Canadian retail sector. Malls, which rely heavily on anchor stores like Hudson’s Bay to drive foot traffic, will likely see further declines in business, while suppliers and workers within the Hudson’s Bay network face uncertain futures.
For consumers, this signals the end of an iconic Canadian retail experience that has lasted for centuries. But it also serves as a stark reminder of how global trade tensions, including tariffs, have increasingly impacted even the most established retailers in North America.
As Hudson’s Bay begins its final clearance sales, the broader retail landscape watches closely, as the demise of such a long-standing institution raises further questions about the future of traditional brick-and-mortar retailers in a post-pandemic world marked by economic volatility and trade wars.
By Globalfinserve Team