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TORONTO, Sept 29 (Reuters) - Hudson's Bay Co HBC.TO plans
to eliminate 265 corporate jobs, mostly in the United States,
and cut costs to save C$75 million (US$55.86 million) as it
streamlines its North American operations, the department store
operator said on Tuesday.
Shares rose after the announcement and finished 6.6 percent
higher at C$20.73.
The retailer, founded in 1670 and North America's longest
continually operated company, is expecting a C$20 million charge
in the third quarter as it consolidates to cut duplication
across department store operations.
Hudson's Bay, which also owns the Lord & Taylor banner in
the United States, bought the Saks luxury chain in 2013 for $2.4
billion. This past summer, it announced a 2.8 billion euro
($3.14 billion) deal to buy Germany's Kaufhof chain.
The job cuts will affect just over 0.5 percent of the
company's nearly 45,000 employees, primarily U.S. positions, a
spokeswoman said, adding that Hudson's Bay was ahead of schedule
in its integration plans.
Earlier this month, the company told investors it was on
track to meet its C$100 million cost savings target as part of
its Saks acquisition and had indicated there could be more
savings to come.
The retailer has also been investing heavily in its back-end
technology so its various department store banners and online
operations all function off a common platform, a move executives
say will help drive long-term growth and savings.
The company said it was also on schedule to open several
Saks Fifth Avenue locations and OFF 5th locations, beginning
next year, as part of is expansion plans in Canada.
($1 = 1.3426 Canadian dollars; $1 = 0.8906 euro)