TORONTO — When Hudson’s Bay announced its massive liquidation plan, many believed it would open doors for two of Canada’s remaining retail giants: La Maison Simons and Holt Renfrew. Given their similar scale and product offerings, it seemed natural that they would seize the opportunity to acquire the substantial space left behind by the Bay and its affiliates, including Saks Fifth Avenue.

However, both retailers have publicly distanced themselves from this notion. Holt Renfrew spokesperson Adam Grachnik confirmed that the luxury brand was "not considering" the Bay’s leases but expressed a desire to support their colleagues in any meaningful ways.

Similarly, Simons’ CEO Bernard Leblanc stated that his company has "no new announcements planned." He emphasized a meticulous strategy moving forward: "We are patient to find the right opportunity at the right moment, in the right place, and under the right conditions." Leblanc asserts that their aim is quality over quantity—not merely to be the largest retailer, but to be the most esteemed in the eyes of their customers.

Retail experts commend this cautious stance from Simons and Holt Renfrew. According to Lisa Hutcheson of J.C. Williams Group, retailers today are acutely aware of balancing the need for physical presence with the challenges of excessive real estate. Rather than scrambling for 74 Bay locations alongside 13 Saks Off Fifth stores and two Saks Fifth Avenue sites, she believes it’s wiser for them to consider acquiring one or two locations strategically, particularly those situated in prime shopping precincts.

Hutcheson warns that Canada’s market has limitations, saying the population may not support larger stores without significant investment and operational costs in inventory and staffing.

Simons is focused on its future with plans to open in top-tier spots like Yorkdale and Eaton Centre in Toronto by this winter. This expansion, part of a thoughtful $75-million investment, demonstrates their commitment to a gradual growth strategy. Currently, they boast only 19 stores due to their methodical approach to market entry.

The same careful strategy applies to Holt Renfrew, which has evolved from its origins as a fur shop in 1837 to a luxury retailer with just six locations nationwide. They have chosen longevity over the rapid expansion that could jeopardize their brand identity.

Lanita Layton, a former vice-president at Holt Renfrew, explains how both brands have opted not to overextend themselves, especially when it comes to managing operational costs associated with larger storefronts. She doubts many of Hudson’s Bay’s properties would attract Holt Renfrew's upscale clientele due to their less desirable locations.

As for Simons, Layton believes they would also find many Bay properties too expansive for their needs. Instead, both brands may capitalize on the current retail landscape without committing to large-scale stores that may not align with their operational model.

This cautious and strategic approach indicates a smart evolution in Canada’s retail landscape, emphasizing brand integrity over mere physical presence.