Closure of Home Outfitters Stores in Canada

ECONOMICS
ARTICLE SUMMARY
STUDENT ID:
[Pick the date]

ARTICLE SUMMARY
Summary of Article
The given article relates to the closure of 37 Home Outfitters stores that are located in
Canada. This is a strategic decision by the parent company i.e. Hudson’s Bay Co aimed at
reduction of costs, business simplification along with profitability improvement. It is also
estimated that after a review the company may close down 20 stores in the US also. This will
allow the parent company to ensure that the available portfolio of stores is only those which
potentially offer the highest opportunity for future growth. The company did not highlight the
amount of employees that would be impacted by the closure. Also, some days earlier, US
based discount shoe retailer Payless ShoeSource also decided to close 2,354 stores across
North America (KewarthaNOW, 2019).
Interesting Aspect
I found the given article relevant owing to my interest in the retail industry and future career
ambitions in this industry. Right from my childhood, I have had a fascination for retail stores
with their varying formats and different product offerings. Also, during recent years, I have
seen a transformation in the retail sector particularly with the advent of e-commerce retailers.
These have completely transformed the retail landscape not only in US but also in Canada
(Arnold, 2015). However, it also presents an opportunity to the existing retail chains that
need to adapt their business model and product offering in accordance with the changing
industry landscape along with customer preferences (Mankiw, 2014). I find it immensely
fascinating how on one end some of retail chains are struggling in this environment, while
others are thriving. Through articles related to retail chains, I intend to garner greater
understanding of how different retailers are coping up with the current scenario.
Relation of article to material
2