Fast Shipping BI Intelligence


Digital sales at Hudson's Bay Company soared in Q3 2016, as the company continued to embrace new fulfillment tactics in order to boost volume output and customer loyalty.

Hudson's Bay Company owns legacy retailers Saks Fifth Avenue, Lord & Taylor, and notably acquired e-commerce startup Gilt in January 2016.

As the company continues to see e-commerce growth, it is investing in robotics that can significantly boost efficiency in its fulfillment centers, which could ultimately improve customer satisfaction and loyalty.

Total sales across Hudson's Bay Company retailers saw significant growth during Q3. In the quarter ended October 29, total sales grew 28% year-over-year (YoY) to reach nearly $2.5 billion, which includes e-commerce pureplay Gilt. However, same-store sales decreased 4% YoY, meaning that much of the company's total growth came from its e-commerce acquisition. The company does not break out digital sales, but CEO Gerry Storch noted on the earnings call that growth was driven primarily by its Gilt division, as well as expansions in Europe.

In order to supplement further e-commerce growth, Hudson's Bay Company relied on new robotics in Q3.Hudson's Bay is focused on using fulfillment to grow online sales by providing efficient, speedy delivery. The company installed new robotic technology in its Toronto distribution center in Q3 to increase fulfillment speeds and help optimize the way space is used in the warehouse, while also reducing overall e-commerce expenses.

As e-commerce becomes a bigger portion of Hudson's Bay Company's total business, fulfillment should remain at the forefront of its digital initiatives. Consumer standards are shifting when it comes to what actually constitutes "fast shipping," and investing in speedy delivery is one of the most effective ways to drive up customer loyalty and future purchases.

To that end, many companies are focusing on the parcel delivery industry. This segment of the shipping sector deals with the transportation of packages to consumers, and it's booming thanks to e-commerce growth. As a result, players outside the industry want a piece of the pie.


Here are some of the key points from the report:


In full, the report:

  • Sizes the market for the shipping industry.
  • Explains how the industry operates in broad terms.
  • Concludes how these moves might impact traditional carriers.


