The Bay’s filing of bankruptcy protection follows a revitalization that began in 2008 by then-president and CEO Bonnie Brooks, when a department called the Room became a destination for directional high fashion under Nicholas Mellamphy.Fred Lum/The Globe and Mail
Founded in 1670, Hudson’s Bay department store is Canada’s oldest company. Since filing for bankruptcy protection March 7, the national retailer has begun liquidating and winding down operations.
The reversal of fortune follows a revitalization that began in 2008 by then-president and CEO Bonnie Brooks, when a department called the Room became a destination for directional high fashion under Nicholas Mellamphy, a luxury style expert with prior stints at Gucci and Club Monaco, while interior stylist and established Canadian designer Arren Williams revamped homewares.
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Following their tenure, Tyler Franch spent nearly a decade with the retailer building on that transformational period while also navigating the pandemic downturn, until 2023 – most recently as vice-president and fashion director. Now a creative director and retail consultant based on Los Angeles, Franch reflects on the ups and downs of his time at the beleaguered legacy retailer.
As the Bay liquidates, Canadians are calling it the end of an era. Yet we’ve had other traditional department store chains like Eaton’s and Sears completely shutter. What makes the the Bay’s history different?
It’s the first – and the last one standing. And the Bay has always been a brand that Canadians have loved in a way that I think transcends what the department store is today. In my experience there’s been a lot of initiatives built around Canadian brands and servicing Canadians and really listening to the voice of the customer wanting to spend money on home ground. But you know, the money wasn’t always where the mouth is.
The Bay is perhaps an idea more than a store many regularly shop at?
I believe so. And I think a lot of that comes with the nostalgia of shopping at the Bay and the nineties and the early aughts. It’s a very different store today than it was 20 years ago or even 10 years ago.
How do you think the Bay closure will change the retail landscape beyond major urban centres?
What we saw in the pandemic, and this wasn’t just the Bay but across a lot of businesses that have a large fleet of stores, was that digital grew at a very fast pace while stores were closed. But when the stores did begin to open, the rural areas were the first to come back full swing. They had the best foot traffic, sales were on fire. We saw those sort of “life moments” that the customer has a need to shop for, whether it be prom, holiday or Father’s Day or Mother’s Day. I think that TheBay.com had an opportunity to really service those customers that were in more rural areas – not that their shopping behaviour would completely shift to digital, but that there’d be a balance. But TheBay.com simply just got too large, too fast, and lost the ease of shopping and curation – those are the most important things online right now, as the competitive landscape is so intense.
That idea of a curated experience seems to be where department stores and specialty retail has been heading – like French department store Printemps just opening an edited version in New York.
Department stores have always been overwhelming to shop in. If this deal goes through where the Bay can keep some stores, having the focus really be on the best curation is their opportunity to do that.
Tyler Franch spent nearly a decade with the retailer building on that transformational period while also navigating the pandemic downturn, until 2023 – most recently as vice-president and fashion director.Fred Lum/The Globe and Mail
The traditional department store model where you have a toy department, travel department, wedding registry, appliances and furniture, in addition to fashion and fragrance, is that obsolete?
I think the strategy of being a one-stop shop can still exist in some capacity. But when assortments across every department are as large as they were at the Bay, it does make it a bit impossible to decide [and make shopping decisions]. The ease of shopping is not there any longer.
What are your thoughts as 74 physical locations shutter and affect so many communities?
It’s devastating. Devastating for the store employees as well: A lot of them have worked decades in those stores and have a loyal client base that comes and sees them. For so many of these stores, where there’s not a lot of retail, those brick-and-mortar stores grow to be a social event rather than just shopping. It’s strange and unfortunate that people think that because Amazon and online shopping exists, that it makes everything accessible to everyone.
Your tenure included several major initiatives like the Fifteen Percent Pledge (founded by Canadian Aurora James to dedicate 15 per cent of shelf space to Black-owned brands), the Fashion Fund launched in 2021 to foster diversity with Emefa Kuadey of Israella Kobla as the inaugural recipient, and several major designer collaborations. What was the highlight?
The Fashion Fund. It was incredible for me to really have the trust and the investment from the executives at the Bay to make some significant changes, and everything that I did was through the lens of the Canadian customer. Following the death of George Floyd, in a moment when this conversation was top of mind for everyone in the company, there was an opportunity. My mission was to have one BIPOC designer, one brand, be able to grow to a place where they were able to take their business globally and turn real profit. But do it in a way that was sustainable. Giving a lump sum of cash, a $25,000 grant, is not enough. It was three years of mentorship, through people who had different expertise. The winners from there on would get to touch every part of the business, whether it be retail law, or imports and logistics and merchandising, creative and marketing. It was really meant for that brand to grow outside the Bay and hopefully outside the country.
What else stands out?
I was certainly riding off the coattails of Nicholas Mellamphy and his mission to find and nurture the best of emerging talent and bring that to Canadians. Being able to meet these brands and these designers and hear them tell me constantly that the Room at The Bay was the most incredible retail space that they’ve seen in the world was probably one of the biggest wins. Unfortunately, for customers it remained a best-kept secret for a very long time, probably through most of its existence. But the international recognition from the industry itself was huge.
It’s interesting that the industry recognized the Room’s innovation more than customers did.
With a space like the Room, the marketing needed to drive that business in Canada, where the footprint of the customer is so much smaller than it is in the U.S. or Europe. It needed significant investment. And I would say that it didn’t always get what it needed to scale. The other thing I also want to mention is that I left nearly two years ago – and all my opportunities have been in the U.S., because I simply could not find the right opportunities for myself in Canada.
That’s a good point. There’s the whole gamut of people working in every aspect of retail, be it merchant or display or marketing, where the Bay provided career opportunities.
For me that’s a really hard loss. I had to leave the country I love so much and my family to find work in my field. A big piece of the story is they’re losing talent left, right and centre – and that’s not good for Canadians either.
