Ann Taylor and Loft have returned to Canada in a big way through an agreement with Centric Brands LLC and Hudson’s Bay.
As of Tuesday, 30 Ann Taylor shops and 60 Loft shops have opened inside Hudson’s Bay department stores across Canada, marking the first time the brands have been in Canada since 2020. Ann Taylor and Loft products are also being sold online through Hudson’s Bay at www.thebay.com.
Centric, which acts as the distribution partner for Canada, buys product from the same Ann Taylor and Loft range that is carried in the brands’ stand-alone stores.
Faced with increasing competition and declining sales, Ann Taylor and Loft began pulling out of Canada in 2019 as its then-parent company, the former U.S.-based Ascena Retail Group, was restructuring. A total of 37 Ann Taylor and Loft freestanding stores had been operating in Canada. Eventually, Ascena went bankrupt and was sold for $540 million to Sycamore Partners, a private equity firm that owns Talbots, The Limited and Torrid, among other brands. Sycamore also picked up the Lane Bryant and Lou & Grey retail brands through the deal.
Ann Taylor and Loft are currently part of the KnitWell Group, a holding company formed by Sycamore last year. KnitWell includes Talbots, Chico’s, Haven Well Within, Lane Bryant, Soma and White House Black Market, and generates a combined annual sales volume of $6 billion.
The Ann Taylor and Loft additions could help Hudson’s Bay pull out of its doldrums. Executives from HBC, the parent company of Hudson’s Bay, acknowledged last August that Hudson’s Bay did not rebound after the pandemic the way U.S. retailers did. They also said that heavy investments in digital capabilities and inventory in Canada did not pay off, and that Hudson’s Bay had to clear merchandise more aggressively than it wanted, particularly when Nordstrom liquidated in Canada and Bed Bath & Beyond went bankrupt. The situation was further complicated when discretionary spending, even in the luxury sector, weakened. HBC executives have also blamed Hudson Bay’s difficulties for “triggering” slowed payments to Saks Fifth Avenue and Saks Off 5th vendors. Hudson’s Bay, Saks and Saks Off 5th are all part of the HBC portfolio.
Both Ann Taylor and Loft indicated in a statement Thursday that their Canadian offerings will be consistent with what the retail brands have historically offered. Ann Taylor characterized its assortment as “trend-right” product for the modern working woman, including suiting, blazers, dresses and pants as well as inclusive sizing up to 16. Loft characterized its assortment as “fun, feminine fashion and easy stylish wardrobing that takes her from workday to play, with jackets, denim and sweaters.” Both brands still have significant mall and street presences in the U.S. Ann Taylor has nearly 200 stores and outlets across the U.S. and offers online shopping at anntaylor.com. Loft has more than 500 stores and outlets in the U.S. and also sells through loft.com.
Deirdre FitzGerald, president of International for KnitWell Group, said Canada “is a very important market for our brands” with “loyal” followings in the country. She expects the brands to also engage with new customers.
“The arrival of Ann Taylor and Loft to Hudson’s Bay is such a strong fit for our customers, so many of whom are working women that want style and sophistication in their office attire,“ said Liz Rodbell, president and chief executive officer of Hudson’s Bay. “This is the time of year when we jump back into our routine and refresh our fall wardrobe.”
Brent Unger, president of Centric Brands Canada, said, “We believe that customers deserve access to great brands and product wherever they may call home, so we have made it our mission to create connections across the globe, and this partnership is another outstanding example.”
Loft inside Hudson’s Bay.
Courtesy image
Hudson’s Bay operates 81 department stores in Canada, selling fashion, home, beauty and food concepts, among other categories, and is part of HBC, which also operates the Saks Fifth Avenue and Saks Off 5th stores and websites. HBC is in the process of purchasing the Neiman Marcus Group in a deal expected to close later this year or next year.
Centric Brands LLC specializes in product design, development and sourcing, retail and digital commerce, marketing and brand building. The portfolio includes licenses for more than 100 brands, including Calvin Klein, Tommy Hilfiger, Nautica and Under Armour, in the kids’ category; Joe’s Jeans, Buffalo, Hervé Léger and Izod in men’s and women’s apparel; Coach, Kate Spade, Michael Kors, All Saints, Frye, Timberland, Hunter and Jessica Simpson in the accessories category, and Disney, Marvel, Nickelodeon and Warner Bros. in entertainment. Centric also owns and operates Zac Posen, Hudson, Robert Graham, Avirex, Fiorelli and Taste Beauty and operates a joint venture brand, Favorite Daughter, with Sara and Erin Foster.
