When you think of department stores, most people imagine elevator music and holiday sales. You probably don’t think of frontier warfare, forbidden romances, or the rugged heroes of Manifest Destiny. Surprisingly, maybe you should, especially when talking about the Hudson’s Bay Company.
Today, the Hudson’s Bay Company is a well-known Canadian retail giant. It owns familiar stores like Lord & Taylor, Saks Fifth Avenue, and Hudson’s Bay. They have locations across Canada, the U.S., and parts of Europe, with annual sales nearing $7 billion CAD. Their origins, however, are far from the commercial landscape we recognize today.
The Hudson’s Bay Company’s journey began way back in the 17th Century. In 1659, two French fur traders, tipped off by the native Cree, saw Hudson’s Bay as a goldmine for fur trading. They tried to get backing from French authorities to set up shop but were turned down and penalized after pursuing it independently. Undeterred, they sought help from Boston businessmen and eventually secured support from England. In 1670, King Charles II granted them a trading charter, and Prince Rupert became the company’s first governor. They were handed a vast territory in Canada to explore, leading to the creation of the Hudson’s Bay Company.
Life wasn’t easy for the early HBC. They depended heavily on Native trappers for pelts, but tribes often found themselves at war, making trade routes perilous. One notable HBC figure, Henry Kelsey, learned Cree customs and promoted peace. Many traders married Cree women, creating mixed-race families who eventually became integral to the company’s growth.
The Hudson’s Bay Company also faced constant tension with the French traders. The rivalry reached its peak with the British winning at the Battle of Quebec in 1759. Even though French forts were abandoned afterward, resistance from French-allied tribes continued until a treaty recognizing certain lands for First Nation Peoples was signed by King George III.
To stay competitive, especially against the North West Company, the HBC kept expanding. The fur trade struggle saw legends like Alexander MacKenzie making extraordinary journeys. The gold rush of 1849 brought a surge of fortune seekers west. This boom disrupted labor markets but also increased profits from gold mining, keeping the HBC profitable despite new tax and customs laws.
In 1881, HBC’s first mail-order catalog marked the beginnings of its now-massive retail business. Fast forward to the 20th Century, and HBC’s retail division skyrocketed. Major Canadian cities like Winnipeg and Calgary grew around their trading posts. They even dabbled in the oil and gas industry for a while, but it was retail that ensured their continued success.
However, things got tricky in the 1990s with the entry of Walmart into Canada. This sparked an all-out price war, with Walmart quickly gaining a massive market share. HBC responded by revamping Zellers, its discount arm, but sales remained underwhelming.
As e-commerce began booming, HBC jumped in with hbc.com, but couldn’t keep up with the fierce competition, leading to stagnant sales and plunging stock prices. In 2005, Jerry Zucker took over but passed away in 2008, leaving the company struggling through the Great Recession.
By 2017, desperate to stay afloat, HBC tried to sell to Macy’s. Yet, with declining profits and an uncertain future, the Hudson’s Bay Company seems poised to become a historical footnote much like the fur trade it once dominated.
Despite the turbulent history, the saga of the Hudson’s Bay Company is a fascinating chapter in commerce, showing how companies must evolve or fade away. As for the people behind this story, they’re a reminder of the resilience and relentless pursuit of dreams, no matter the odds.