| TORONTO, June 9
TORONTO, June 9 Canadian department store
operator Hudson's Bay Co on Friday said it would
streamline its structure across its various store chains in
order to compete in what it called a "brutal" retail
environment, while its shares plunged to record lows.
Executives told analysts in a conference call that the
company, which operates Hudson's Bay, Lord & Taylor, Saks Fifth
Avenue and other chains, plans to decrease its number of vendors
and move toward a "shared services" structure to standardize
processes across department stores.
The shares tumbled C$1.08, or 11.2 percent, to C$8.55, and
earlier touched a record low of C$8.44. The company on Thursday
had announced a major restructuring plan that included cutting
2,000 positions in North America and reported a
wider-than-expected quarterly loss.
"It's prompted by ... the strong feeling that we need to get
ahead of industry conditions ... and start leading this," said
Chief Executive Gerald Storch on Friday, adding that the
streamlined structure would help make any future acquisitions
easier to integrate.
The company said its team in Europe was also focused on
managing costs, but that the restructuring was centered on North
Storch said employees in Europe were unionized and the
agreement when it purchased the Kaufhof department store chain
included limits to job cuts in the first several years of
(Reporting by Solarina Ho; Editing by Chizu Nomiyama and