Plans call for Lord & Taylor to open 10 to 15 stores throughout Canada, filling a void between the Bay department stores and the upscale Holt Renfrew chain. The overall strategy, according to the announcement, is creating a greater focus on the Bay by offering better brands and service.

"By acquiring Hudson's Bay Co. along with previous acquisitions Lord & Taylor and Fortunoff, we will have an unprecedented opportunity to recreate the retail landscape in North America," said Richard Baker, president of NRDC and now CEO of Hudson's Bay in a statement. "Enormous potential exists by upgrading the offerings at both the Bay and Zellers and by bringing Lord & Taylor, Fortunoff & CDS into the mix." In addition, Fortunoff will open jewelry and home furnishings departments within the Bay, and the Zellers mass merchandise chain will roll out a new, 125,000-square-foot prototype, as well as see a greater focus on branded apparel and customer service.

NRDC acquired Lord & Taylor in 2006, and Fortunoff earlier this year. Previously a minority owner in Hudson's Bay, NRDC Equity Partners invested $500 million into the new company. The combined company, now called Hudson's Bay Trading Co., has more than US$8 billion in sales, and 55-million sf of stores in the US and Canada.