Image Credit: CFJC Today

By James Peters

Two and Out

PETERS: The Bay and London Drugs live to fight another day

May 24, 2024 | 12:30 PM

BY THE TIME THE BAY opens again in Aberdeen Mall, it will have been about six months of closed doors.

In what aisle are the dusting wands sold again?

Unionized employees at the store reached a deal with the company this week, ratifying a mediated settlement that ended months of acrimony and labour strife.

Labour disruptions usually lead to financial hardships for both the striking employees and the company, so it’s notable that this one carried on as long as it did.

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By not pressing the issue, the Hudson’s Bay company may have given us a hint that having that store sit closed wasn’t the worst thing for its bottom line.

Perhaps the revenue coming in from sales wasn’t keeping pace with the other expenses of operating a box store with such a massive footprint in a prime retail location.

Elsewhere, London Drugs is back open again after its own closure for decidedly different reasons.

The Richmond-based retail chain was hit with a cybersecurity attack that resulted in a major breach of private information.

When the company refused to pay a ransom, the hackers released some of that data online, subjecting employees to the potential for further theft and fraud.

Once again, refusing to pay ransom is typically not how you would want to deal with situations like this and may speak to the general financial health of London Drugs.

Of course, we never cheer for store closures or for companies to go out of business.

That results in loss of jobs, loss of retail options and a negative ripple effect for a community’s economic health.

The fact of the matter, though, is many big box retailers have gone out of business or have closed up shops thanks, in part, to changing trends in consumer behaviour.

Revenue has shifted considerably from brick-and-mortar to online shopping.

On the expense side, paying staff is expensive, rent is really expensive and there are a host of other overhead costs that challenge a big box retailer’s ability to turn a profit.

The Bay and London Drugs may have survived the latest battle, but that doesn’t mean the long-term prospects of survival for stores like theirs are any brighter.

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Editor’s Note: This opinion piece reflects the views of its author, and does not necessarily represent the views of CFJC Today or Pattison Media.