In a strategic move that reflects shifts in the Canadian retail market, Hudson’s Bay Company announced reaching an agreement to sell up to 28 lease agreements for its retail locations to Ivanhoé Cambridge, a major real estate investment firm that owns and manages several shopping centers in British Columbia and other parts of Canada.

According to a statement from the company, the deal includes Hudson’s Bay stores located within shopping centers owned by Ivanhoé Cambridge, and will allow the latter to redevelop these locations or repurpose them in line with its investment strategies.

Hudson’s Bay clarified that this step is part of its efforts to restructure its operations and enhance its operational efficiency amid the rapid transformations in the retail sector and the growth of e-commerce.

The financial details of the deal have not yet been disclosed, but the company indicated that the agreement does not necessarily mean the branches will close immediately, as deliveries are set to occur gradually, based on future plans agreed upon by both parties.

It is worth noting that Hudson’s Bay, one of the oldest retail chains in Canada, has been facing increasing pressure in recent years, and has sought to adjust its business model to address the decline in foot traffic at traditional shopping centers.