Bad news, deal hunters. Holt Renfrew will be closing their off-price sister store, hr2. Our friends at Retail Insider are reporting that the ‘premium off-price’ division will shut down mid-2017. There are only two hr2 locations in Canada.
The news comes as a bit of a surprise, especially since competitors Saks 5th Avenue and Nordstrom have gone full force in their off-price strategies. Saks OFF 5th locations have already started popping up nationally and Nordstrom Rack stores are slated to launch in 2018. Though, the high density of available discount designer in the market could also be the exact reason why Holt Renfrew is scaling back.
In 2015, the Canadian luxury retailer closed two locations (Ottawa and Quebec City,) to focus on making their larger stores more profitable and it seems that the recent move is being made as part of a similar strategy. In an interview with WWD, Holt Renfrew president Mario Grauso said that with closing hr2 stores, the company can focus on its ‘core luxury business’. He also said that at the moment, they have no plans for an alternative lower-price strategy, meaning there are no plans for a Holt Renfrew outlet anytime soon.
With things heating up in Canadian luxury retail, it’s down to the survival of the fittest. We’re sad to see hr2 go but we’re excited to see what Holt Renfrew has up their sleeve now that they’re tightening things up. Holt Renfrew currently has seven full-price stores in Vancouver, Toronto, Edmonton, Montreal, Mississauga, and Calgary.
We’ll keep you updated if we hear of any good hr2 liquidation sales.
Are you sad that hr2 is closing? Let us know in the comment section.
Featured Image: Instagram/@natalieast
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