BERLIN, Nov 18 (Reuters) - Hudson’s Bay Co plans more acquisitions after its 2.8 billion euros ($3 billion) deal to buy Germany’s Kaufhof department store chain, Chief Executive Jerry Storch said on Wednesday.
“We’re just starting. We’ll continue to grow and grow because scale is so vital,” Storch told the German retail congress, adding Hudson’s Bay would “continue to acquire”.
The Canadian department store operator raised its sales and earnings forecasts in September due to cost cuts in its North American operations and the Kaufhof acquisition.
Storch said Hudson’s Bay was determined not to repeat the mistakes of WalMart, which failed when it tried to break into the German market a decade ago.
“They didn’t listen to the Germans,” Storch said. “We’re not know-it-alls.”
Hudson’s Bay has lots of ideas for overhauling Kaufhof in areas such as shoes and cosmetics, as well as introducing luxury zones in premium locations, Storch said, but will only proceed after consultation with local staff.
Storch noted that the Saks Off 5th discount concept was growing quickly in North America and added that Hudson’s Bay hoped to bring the concept to Germany, too.
$1 = 0.9376 euros Reporting by Emma Thomasson; editing by Arno Schuetze and Jason Neely