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."
Her ability to reinvent a retailer should stand her in good stead at the Bay.
She has shown a knack for picking budding brands with potential to become best sellers, industry insiders said. Mr. Baker has said he wants to add more stylish, higher-end labels to the Bay to entice younger, more fashion-conscious customers. His U.S. firm has launched its own design studio to tap young designers' styles for his own chains, as well as other retailers worldwide.
Ms. Brooks's appointment is a signal that the Bay is looking for a global perspective in its offerings, said retail consultant Nancy Dennis of consulting firm Epiphany Branding, who has worked at the Bay and Zellers. "Bonnie Brooks is one of those talented, strong go-getters," she said. "She's Canadian, went around the world and came back."
HBC's move to tap her, said Ms. Dennis, suggests that "they're really trying to make this work. They're developing a very senior, talented executive, which is encouraging."
A day after the HBC deal closed, Mr. Baker announced the appointment of Jeffrey Sherman as its CEO. He's a seasoned U.S. merchant who has headed such big-name U.S. retailers as Bloomingdale's and Ralph Lauren.
Two weeks later, Mark Foote - who had top jobs at Loblaw and Canadian Tire - was appointed to the helm of Zellers, starting Aug. 11. It has struggled against Wal-Mart Canada, a discount juggernaut rapidly expanding in this country.
BONNIE BROOKS
Born: Windsor, Ont.
Education: Arts and literature at the University of Western Ontario and York University, merchandising at Ryerson.
Career highlights: Appointed executive vice-president, merchandising, at Holt Renfrew, in 1988; president of Town & Country chain, 1990-1992; editor of Flare magazine, 1994-1996
HBC'S retail heavyweights
Bonnie Brooks
The Bay's new CEO is president of Lane Crawford Joyce Group, which represents a number of luxury and fashion brands in Greater China, Southeast Asia, Japan, Australia and Korea, with more than 500 locations. She joined Lane Crawford as senior vice-president in 1998 and was named president in 2003. She has worked with the world's leading luxury fashion in retail, marketing and publishing for more than 30 years.
Jeffrey Sherman
HBC's new CEO is a seasoned U.S. merchant who has headed big-name retailers such as Ralph Lauren and Bloomingdale's.
Jane Elfers
Ms. Elfers became Lord & Taylor president in May, 2000, and has overseen the U.S. retailer's
restructuring.
Mark Foote
Appointed to the helm of Zellers, starting on Aug. 11, Mr. Foote has held top jobs at Loblaw Cos. and Canadian Tire Corp.
Richard Baker
HBC's new owner, Richard Baker, is president and CEO of NRDC Equity Partners, owner of a several retail companies including Linens 'N Things and Lord &Taylor.