Don Watros, who led the expansion by Hudson's Bay Company (HBC) into Europe, is to leave the Canadian department store group at the end of September, the company has announced.
The announcement that Watros is stepping down from the role of president of HBC International came a day after the group confirmed it will open a network of 12 stores in the Netherlands during September.
Watros' departure follows the exit of two other HBC executives, Paul Beesley and Brian Pall, respectively chief financial officer and head of real estate, in May and June this year.
The executive churn comes amid falling sales in HBC's North American business and a call by activist shareholder, Jonathan Litt, for a shakeup of the group including a withdrawal from Europe, either by selling the German Galeria Kaufhof operation or at least its real estate.
HBC's management has insisted that the group will continue to expand in Europe. Ten Hudson's Bay department stores and two of its branded Saks Fifth Avenue Off 5th stores are set to open in the Netherlands next month.
'With a seasoned leadership team in place in Europe and our plans to bring Hudson’s Bay to the Netherlands and Saks OFF 5TH to Europe coming to fruition, the time is right for me to pursue my next chapter,' Watros said in a statement.
Watros has been with HBC for 11 years. He was appointed president of HBC International in January 2015. Previously, he served as president of HBC and before that as chief operations office.
His involvement with HBC began in 2008 when he was managing director of retail operations at NRDC Equity Partners during the acquisitions of Lord & Taylor and Hudson's Bay Company.
Galeria Kaufhof
HBC executive chairman Richard Bakker described Watros as instrumental in establishing the European business. It began with acquisition of German department store Galeria Kaufhof in 2015. Watros has served as chairman of the Galeria Kaufhof supervisory board since October 2015. The supervisory board will elect a new chairman in October.
The Galeria Kaufhof department store chain operates close to 100 branches. But losses at Galeria Kaufhof and the campaign by Litt saw the company discuss closures in Germany.
An attempt earlier this month to shut down a Kaufhof department store in Berlin resulted in landlord Unibail-Rodamco launching legal proceedings to hold HBC to its rental contract. HBC now has to keep the store open, stop clearance sales and offer sufficient products to customers under the ruling. HBC said it would appeal the court decision.
In the company's statement on Watros, Jerry Storch, CEO of HBC, underscored the commitment to Europe. 'I'm pleased that we have a strong team in place to continue to execute on our strategy in Europe, as we invest in Galeria Kaufhof, grow Saks OFF 5TH in Germany and enter the Netherlands with Hudson’s Bay and Saks OFF 5TH.'
HBC's retail network across North America and Europe includes Hudson’s Bay, Lord & Taylor, Saks Fifth Avenue, Gilt, Saks OFF 5TH, Galeria Kaufhof, and the Galeria Inno department store chain in Belgium.
HBC has has partnered with Simon Property Group in the HBS Global Properties Joint Venture, which owns properties in the US and Germany. In Canada, it has partnered with RioCan Real Estate Investment Trust in the RioCan-HBC Joint Venture.
Image: Don Watros
