UPDATE 1-Hudson's Bay names Toys R Us former CEO as new head

Wed Dec 17, 2014 8:40am EST
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Dec 17 (Reuters) - Canadian department store operator Hudson's Bay Co named Toys R Us Inc's former chief executive Gerald Storch as its new CEO, as the owner of Lord & Taylor and Saks chains looks to expand its online presence.

Storch, who replaces Richard Baker, spearheaded Target Corp's entry into the online and credit card businesses.

Hudson's Bay's total online sales touched C$228 million ($196 million) in the third quarter, accounting for about 12 percent of the company's retail sales.

Storch's appointment will come into effect on Jan. 6, Hudson's Bay said on Wednesday.

Baker will continue as governor and executive chairman of the company, a centuries-old firm with roots in the fur trade.

Storch has been advising Hudson's Bay on the development of strategy for its Saks Off 5th outlets, acquired as a part of its purchase of U.S. retailer Saks Inc last year for $2.4 billion.

A retail industry veteran with 30 years of experience, Storch oversaw the expansion of Toys R Us's online and international business, Hudson's Bay said.

Hudson's Bay shares closed at C$23.67 on the Toronto Stock Exchange on Tuesday.

Up to Tuesday's close, the stock had risen about 17 percent since Nov. 21, a trading day before the company said the Saks Fifth Avenue store in New York was appraised at C$4.1 billion. ($1 = C$1.16) (Reporting by Ashutosh Pandey in Bengaluru; Editing by Saumyadeb Chakrabarty and Kirti Pandey)