Hudson’s Bay benefits from Target exit

Regard to the BNN (Business News Network), Hudson’s Bay benefits from Target exist the market. Target Crop’s helped Hudson’s Bay Co (HBC.To 6.58%)pick up Canadian market share.

A company’s exit from the market will directly affect another company’s performance in this market. For example, an extension to my last blog, Best Buy’s exiting from Chinese Market benefits its competitors like Sunning. Sunning picked up BestBuy’s previous leases and start Sunning’s new type of high quality service business mode in the new store. The great location and regular customers gives Sunning a great opportunity to expand its business in the market. So, generally, as a company exist the market, what are the impacts to the other companies the market?

Benefits:

• Customers shift from the one (exiting company) to another company. Ex. From Target to HBC.
• The Companies in the market will have one less competitor and can focus more on the other looming companies.
• Since the stores from the exiting company are moved out, if a company has a strong balance sheet, then it could easily afford to pick up some new leases and expend its business.
• Companies can hire those workers from the existing company who have great business mind. So that they can contribute to the competitors.

Resource:

Reuters, Solarina Ho. “Hudson’s Bay Benefits from Target Exit; Costs Pinch Results – BNN News.” Hudson’s Bay Benefits from Target Exit; Costs Pinch Results – BNN News. Business News Network, 10 June 2015. Web. 30 Sept. 2015.