The End of Hudson’s Bay: What the GCBI Tells Us About Canadian Retail’s Future in a Post-Department Store Era

Yesterday, on June 1, 2025, Canada lost a symbol. Hudson’s Bay—widely regarded as the oldest continuously operating company in North America—closed the doors to its final brick-and-mortar location. It was a moment that carried more than economic significance. For many Canadians, the Bay was more than a place to buy towels and coats—it was woven into the cultural fabric of the country, a place where generations went for back-to-school shopping, wedding registries, and Boxing Day traditions. With its demise, Canada now finds itself without a true national department store chain, save for La Maison Simons. The question that emerges now is whether this is simply the end of a format—or a warning sign for retail at large.

The Great Canadian Brand Index (GCBI) provides us with a unique lens through which to view the rise and fall of Canadian retailers, offering data not only on brand recognition or popularity, but on the moral and emotional attributes Canadians assign to the brands they encounter. Hudson’s Bay exited the retail landscape with a GCBI score of 62.9, a mid-range score among major retail players. It was perceived as moderately friendly (66.0), respectful (66.8), and honest (62.7). But its sustainability score—just 55.3—stood out as one of the lowest among major retail brands. In an era where consumers increasingly care not only about what they buy but how it was sourced, produced, and sold, such a gap may have quietly but powerfully eroded the brand’s relevance.

Contrast this with La Maison Simons, now the last department store standing. Simons holds a GCBI of 66.4, with strong performance across friendliness (69.4), respectfulness (68.7), and honesty (65.3). Its sustainability rating is also markedly higher at 62.0. What separates Simons from Hudson’s Bay may not be style or even selection, but values. Over the last decade, Simons invested in ethical fashion, local production, green building practices, and open storytelling about its sustainability commitments. These actions, reinforced in consumer perception, likely helped preserve its brand equity even as competitors fell by the wayside.

Academic research increasingly shows that values-based branding is more than a marketing trend—it is a decisive factor in consumer behaviour. White, Habib, and Hardisty (2019), for instance, emphasize that consumers are more likely to shift their behaviour toward sustainable brands when they believe their choices are aligned with their moral identity. The GCBI data suggest that Canadians—particularly younger generations—are rewarding brands that project responsibility and transparency. Hudson’s Bay, despite its historic legacy, was simply out of step with what many Canadians now expect from a national retailer.

Hudson’s Bay’s collapse also reflects a broader phenomenon: the erosion of trust in legacy institutions. While Canadians continue to value trustworthiness and honesty in brands, they increasingly expect those traits to be demonstrated—not assumed by history or tradition. As Gidengil et al. (2012) argue in the context of political institutions, trust must now be earned through performance, not legacy. This holds true for brands: being old, respected, and once-beloved is no longer sufficient. Brands must constantly revalidate their place in consumers' lives through visible, consistent actions that reflect evolving norms.

What, then, does this mean for the future of department stores—or indeed, for any large-format retail concept in Canada? It suggests a clear roadmap. First, authentic sustainability efforts are non-negotiable. A new department store concept, such as that being proposed by entrepreneur Weihong Liu, will need to lead with sustainability, not treat it as a side note. This means not only sourcing ethical products, but embedding environmental responsibility into store design, operations, packaging, and staffing practices. It also means transparency—consumers want to know not just that you're sustainable, but how.

Second, humanity and community integration will be key differentiators. Brands like Canadian Tire (GCBI = 67.6) and Winners (66.5) consistently score high on friendliness, respect, and trust. These are retailers that feel close to the consumer—they serve the everyday needs of Canadians and do so in ways that are perceived as honest and accessible. Any new department store that feels corporate, cold, or transactional will face an uphill battle. But one that feels local, welcoming, and responsive—even at scale—can still succeed.

Third, retail brands will need to deconstruct the traditional department store model. Gone are the days when consumers wandered through six floors of departments arranged by product category. Instead, we are seeing rising interest in curated, thematic spaces—concept areas that blend apparel with experience, sustainability storytelling with community events. Brands that create immersive and emotionally resonant experiences, even in physical retail, are better equipped to thrive in a landscape where attention is scarce and expectations are high.

This shift is also cultural. Canadians today are not just shopping—they are signalling. Where they shop, what brands they support, and how they narrate their purchases are all forms of identity expression. As Cayla and Eckhardt (2008) point out, brands help consumers express membership in imagined communities—national, ethical, generational. The fall of Hudson’s Bay signals the weakening of one such imagined community and opens the door for new retail identities to emerge—ones built on inclusion, climate awareness, and ethical commerce.

Finally, we must ask: did Hudson’s Bay fail because it was a department store, or because it refused to change? The data suggests the latter. Department stores aren’t dead—but static, disconnected, and opaque ones are. Consumers still crave breadth, discovery, and the in-person experience. But they also want those things packaged in a brand that is honest, purpose-driven, and emotionally aligned with who they are and what they value.

The post-Bay era in Canada will not be defined by nostalgia but by innovation grounded in values. The GCBI tells us clearly: Canadians are looking for more than just low prices or high fashion. They are looking for brands that understand them, evolve with them, and contribute meaningfully to the kind of Canada they want to live in.

References

Cayla, J., & Eckhardt, G. M. (2008). Asian brands and the shaping of a transnational imagined community. Journal of Consumer Research, 35(2), 216–230.

Gidengil, E., Blais, A., Nevitte, N., & Nadeau, R. (2012). Dominance and decline: Making sense of recent Canadian election outcomes. UBC Press.

White, K., Habib, R., & Hardisty, D. J. (2019). How to SHIFT consumer behaviours to be more sustainable: A literature review and guiding framework. Journal of Marketing, 83(3), 22–49.