The new U.S. owner of Hudson's Bay Co. is set to announce Wednesday that Bonnie Brooks, a Canadian with prominent international retail experience, will be the next chief executive of its flagship Bay division as the company moves quickly to build a star leadership team and breathe new life into the tired merchant.
The appointment of Ms. Brooks, a former executive at tony Holt Renfrew and now president of a fashion powerhouse in Hong Kong, is the third high-profile candidate named to fill top positions at HBC since it was acquired on July 16. The moves signal that the new owner, U.S. real estate magnate Richard Baker, is serious about reviving the storied company, industry watchers said.
Ms. Brooks, described by industry observers as a go-getter with a sharp eye for spotting up-and-coming brands, will begin her new job next month, a source familiar with the company said. She is believed to be the first woman CEO at HBC. Her perspective will help serve the Bay's mostly female customers, observers said.
Naming seasoned retailers to the top ranks is in stark contrast to the approach taken by former owner Jerry Zucker, the U.S. businessman who snapped up the struggling HBC in early 2006. Mr. Zucker died of cancer in April. He had appointed himself as HBC's CEO despite having virtually no merchandising experience.
"If someone is going to save the Bay, these are the kind of people they need to bring in," said retail consultant Graeme Spicer. "It's high time they brought someone like Bonnie Brooks to head the organization."
Mr. Zucker later replaced himself as CEO with a close business associate whose background was in finance.
Mr. Zucker refrained from filling the leading positions at HBC's main Bay and Zellers divisions.
Now Mr. Baker, whose company is also in the process of rejuvenating another recent acquisition, the upscale Lord & Taylor, has hand-picked retail heavyweights to take on the critical HBC responsibilities.
He has pledged to shake up HBC's underperforming chains. In addition to the string of appointments, Mr. Baker has said he is investing $500-million to revive the chains. He faces a tall challenge: Successive CEOs at HBC haven't managed to make its chains sought-after shopping destinations amid a fast-changing retail landscape.
Mr. Baker's plan is to differentiate the Bay from discounter Zellers - and introduce more upscale fashion lines to Bay stores.
"We think there is a void between Holt Renfrew and the Bay," Mr. Baker said in a recent interview. "We have a lot of work to do. ... We are going to bring in world-class management."
HBC officials would not comment on Ms. Brooks' appointment.
Ms. Brooks, a former executive at Holt Renfrew and a former editor of Canadian fashion magazine Flare, will have her hands full. Department stores such as the Bay have been losing market share to more nimble specialty chains and discounters. Under Mr. Zucker, HBC improved its bottom line through cost cutting and better backroom systems, but it wasn't able to boost sales.
Born in Windsor, Ont., and raised in London, Ont., Ms. Brooks has been president of Lane Crawford Joyce Group in Hong Kong since 2003, and has been with the company for the past decade. Under her watch, it has been transformed into a luxury retailer, carrying brands such as Prada and Stella McCartney, similar in concept to Holt Renfrew and Nieman Marcus. The parent company in total has more than 500 locations under prominent brands such as Hugo Boss and Versace, growing rapidly into what has been estimated to be a 7.8 billion Hong Kong dollars ($1.03-billion) giant.
"She built Lane Crawford into an Asian superstar," said John Williams of retail consultancy J.C. Williams Group. "She has revitalized the stores physically ... and stocked them with prestige brands. She's very skilled at putting together a merchandising mix of the right brands."
