Hudson's Bay Co. announced on August 12 that it is separating its physical department stores from its online marketplace to create two separate businesses and leadership structures.
The 86 brick-and-mortar stores will continue to operate as Hudson's Bay, while the e-commerce business will operate as The Bay.
HBC's executive chairman and CEO says dividing stores and e-commerce enables each business to make "unencumbered strategic investments."
Earlier this year, the retailer expanded its online marketplace and in April, it opened its website to third-party sellers which added thousands of new brands and products to their online assortment.
Wayne Drummond, president of Hudson's Bay says that the physical department stores will become "discovery destinations" and offer high-touch services that many others cannot.
HBC says that returns, exchanges, rewards points, and credit cards will continue to be accepted both in-store at Hudson's Bay, and online at The Bay.