Signs inside a Zellers store, liquidating its merchandise as Target takes over
(Source: http://smartcanucks.ca/death-of-the-department-store/)

With the entry of new competitors from different countries into the department store market in Canada, it’s becoming increasingly difficult for the country’s current department stores to continue growing. As Hudson’s Bay Co. announces the launching of their IPO in Canada, more competitors are coming in to take a share of its profits, including Target and Nordstrom, which could make raising as much money in their IPO as possible more difficult. Both Target and Nordstrom are expected to make their Canadian debuts in the next couple of years.

Hudson’s Bay Co. is doing what it can to overcome the difficulties that this new competition is going to bring. One thing they plan on doing is implementing a strategy that focuses on bringing bigger fashion brands into the store, such as Michael Kors and Topshop, creating points of difference. If the company wants to continue doing business and increase profitability in Canada, it’ll have to use its strong brand, along with the marketing advantage of being truly Canadian, to convince people that they are the better choice. Otherwise, they risk giving up a significant amount of their market share to the new entrants.