Hudson’s Bay and the Decline of Emotional Relevance—Can Canadian Tire Revive It?

In a surprising twist for two of Canada’s most recognizable retailers, Canadian Tire has acquired the rights to use the Hudson’s Bay brand name on a range of products sold in its own stores. This licensing deal comes on the heels of Hudson’s Bay declaring bankruptcy—but it’s clear that the brand name still holds symbolic weight. Canadian Tire’s bet is simple: even if the Hudson’s Bay stores have failed, maybe the brand itself can still sell. But according to data from the Great Canadian Brand Index (GCBI), this isn’t a guaranteed win.

Canadian Tire performs relatively well in the GCBI, with a GCBI score of 67.6 and strong ratings in Friendly (70.3), Respectful (69.9), and Honest (68.4). These dimensions matter—research shows that brand warmth and moral alignment increase consumer trust, perceived value, and purchase intention (Sweeney & Soutar, 2001; Ladhari et al., 2011). Hudson’s Bay, on the other hand, has a much weaker profile: a GCBI score of just 62.9, with low ratings in Adventurous (57.0) and Sustainable (55.3). While it still scores moderately on traits like Respectful (66.8), the data suggests that Canadians see the brand as stuck in the past—not innovative, not exciting, and not socially progressive.

This creates a tricky dynamic. When a strong brand like Canadian Tire teams up with one that’s emotionally fading, there’s a risk of brand dilution. According to Keller’s (1993) brand equity theory, associating with a weaker brand can reduce clarity and even lower perceptions of the stronger brand, unless the connection is carefully positioned to create added value. If Hudson’s Bay is seen as boring or outdated, that sentiment could rub off on Canadian Tire’s otherwise strong brand image—especially if the partnership feels arbitrary.

That said, there’s a way this could work. Canadian Tire may benefit if it uses Hudson’s Bay branding in categories that tap into nostalgia or perceived product quality—like home textiles, seasonal items, or heritage-style products. Hudson’s Bay still evokes a certain traditional Canadian aesthetic, and if Canadian Tire can frame the brand as a symbol of craftsmanship or classic design—not just a name slapped on a box—consumers might respond positively.

But Canadian shoppers, especially younger ones, aren’t sentimental for the sake of it. The GCBI shows clearly that Canadians want brands to stand for something—to be honest, sustainable, inclusive, and future-focused. If Canadian Tire simply uses the Hudson’s Bay name as a marketing shortcut, the effort may backfire. But if it can reposition the brand with modern values while retaining its nostalgic charm, it might just pull off a rare feat: reviving a fallen icon.

References

Keller, K. L. (1993). Conceptualizing, measuring, and managing customer-based brand equity. Journal of Marketing, 57(1), 1–22.

Ladhari, R., Pons, F., Bressolles, G., & Zins, M. (2011). Culture and personal values: How they influence perceived service quality. Journal of Business Research, 64(9), 951–957.

Sweeney, J. C., & Soutar, G. N. (2001). Consumer perceived value: The development of a multiple item scale. Journal of Retailing, 77(2), 203–220.