By: Mae Cornes
Hudson’s Bay, Canada’s longest-standing retailer, is in a difficult position. After 355 years in business, the company is now seeking creditor protection under the Companies Creditors Arrangement Act (CCAA). It faces more than $1.29 billion in debt and falling sales, with added pressure from economic changes, shifting shopping habits, and global trade tensions.
To regain stability, the company is considering restructuring options, and outsourcing could potentially simplify operations and allow it to focus on core business functions. BruntWork, a leading outsourcing agency, explains how outsourcing might support retailers facing financial trouble.
What Led to Hudson’s Bay’s Struggles?
Traditional stores like Hudson’s Bay are under pressure as consumers move online. Once a retail giant in Canada, the company now struggles with fewer in-store shoppers, supply chain disruptions, and rising operational expenses. Sales have fallen by 30% over the past year, and with debts exceeding $1.1 billion, daily revenue is becoming increasingly critical to keeping the business running.
Some experts suggest that outsourcing could potentially help struggling retailers respond faster and remain relevant. Balancing cost reductions with fresh ideas may determine whether Hudson’s Bay can turn things around.
Outsourcing as a Practical Business Decision
Retailers are increasingly exploring outsourcing to stabilize operations. Assigning customer service, logistics, and IT functions to external teams can allow companies to save money and redirect resources to essential areas. BruntWork helps businesses build cost-effective teams to reduce expenses without necessarily sacrificing quality.
Winston Ong, CEO of BruntWork, explains, “Outsourcing can help companies struggling with finances by allowing them to concentrate on what they do best while potentially improving efficiency. For example, retailers working with customer service outsourcing companies may gain skilled professionals who handle inquiries quickly and professionally, which could ensure customer satisfaction while reducing costs.”
BruntWork tailors services to fit each company’s goals, so cost savings can support long-term success. Ong adds, “Companies might lower labor expenses by up to 70% with a remote-first model while accessing skilled professionals worldwide.”
The Risks and Benefits of Outsourcing
Outsourcing can provide financial relief and improve efficiency, but it comes with risks. Keeping a brand’s identity intact, making sure outsourced services align with in-house operations, and maintaining service quality often requires careful planning. Businesses must build outsourcing agreements that work smoothly with their overall operations.
Despite the concerns, many retailers report having used outsourcing successfully. Contracting logistics services can speed up delivery times and improve supply chain reliability, while outsourced customer service teams may provide 24/7 support at a lower cost.
BruntWork addresses these concerns by carefully selecting remote professionals who can fit seamlessly into a company’s existing structure. Ong explains, “Effective outsourcing isn’t only about lowering costs. It can help businesses operate smoothly and efficiently.”
Can Hudson’s Bay Stabilize Its Business?
Outsourcing may offer Hudson’s Bay an opportunity to ease financial strain and focus on areas like digital upgrades to stay relevant.
While outsourcing alone is unlikely to solve every problem, using it strategically could provide stability. Taking steps toward smarter business operations might help Hudson’s Bay remain a recognizable name in Canadian retail.
Published by Anne C.
