IBM to Build, Host Hbc's New Online Store

February 8, 2006; 11:22 AM
Hudson's Bay Company (Hbc) has signed a five-year, multi-million-dollar agreement with IBM to develop and implement the retailer's new online store.

Hbc selected IBM to build, manage and host its eRetail store, including sites for Hbc's retail outlets: the Bay, Zellers, Home Outfitters and Designer Depot. The new site allows Hbc to focus on its core business of retailing and leave the online site operations to IBM; a move that will help Hbc lower costs.

"In the competitive world of retailing, a strong eRetail channel is an important part of an integrated retail strategy," said Suzanne Hillier-Geissler, GM of Business Intelligence, Logistics and eRetail Systems, Hbc. "Our relationship with IBM to develop and manage our eStore means that Hbc customers can truly have what they want, when they want it."

In spring 2005, IBM began developing the strategy and business plan for a new Web site where Hbc could sell its new Official Canada Olympic Team merchandise, which is accessible now at www.hbc.com. The new online Hbc Olympic shop represents the first step in the Company's revitalized online strategy. IBM will be working with Hbc to upgrade and expand their online presence.

Additional components of the new online store are being developed and implemented in phases throughout 2006 and beyond. The sites are designed to have the ability to handle both the expected peaks of visitors for the Torino Winter Olympic Games in February 2006, as well as future online traffic growth.

"By hosting the site within IBM, we can help ensure Hbc's online store is secure and available to shoppers around the clock, regardless of the number of people accessing the site," said Jane Smythe, associate partner, Business Consulting Services, IBM. "During peak times, like the holidays, the system will be able to draw on more computing power as needed to ensure reliability. We're also in the process of providing a consistent look and feel across the sites to help further the brand recognition of Hbc."

The store is being built using IBM's WebSphere Commerce software and eBusiness Hosting Services hosts the site, and eApplication Managed Services manages the site on a day-to-day basis on an IBM eServer pSeries server and the user interface was designed by the Toronto Innovation Centre.