What: Richard Baker and Eddie Lampert's real estate-focused management strategies have led to the systematic dismantling of iconic retail brands, including Sears, Kmart, and Hudson's Bay Company.

Why it is important: The ongoing impact of these management approaches provides crucial lessons about the risks of prioritising property assets over retail operations, particularly relevant as other retailers face similar pressures.

The parallel trajectories of retail executives Richard Baker and Eddie Lampert illustrate a destructive pattern in retail management, where real estate assets take precedence over retail operations. Lampert's tenure at Sears resulted in the elimination of nearly  GBP 50 billion in retail volume across Sears Roebuck, Kmart, and Sears Canada. Similarly, Baker's stewardship of Hudson's Bay Company has led to its eventual bankruptcy, following a series of questionable decisions and failed strategies. Baker's approach included the systematic dismantling of Hudson's Bay divisions, the separation and subsequent reversal of digital and physical operations, and various real estate deals that prioritised property values over retail viability. His acquisition strategy, self-described as "stealing" assets like Lord & Taylor and Saks Fifth Avenue, culminated in the recent Saks-Neiman Marcus merger, adding another chapter to this pattern of retail transformation through real estate manipulation. The article provides historical context through the author's personal experience at Sears Canada, where they witnessed firsthand the complexities of retail consolidation and the challenges of maintaining viable retail operations.

IADS Notes: The retail landscape has witnessed a dramatic series of events highlighting the impact of real estate-focused leadership. In March 2025, Hudson's Bay Company's forced liquidation of 80 locations marked the culmination of Richard Baker's transformation of the historic retailer. This followed his December 2024 acquisition of Neiman Marcus through Saks Global, a GBP 2.65 billion deal heavily financed by junk bonds. By February 2025, the merged entity showed significant strain, extending vendor payments to July 2026 and closing iconic locations. The contrast with other retailers became evident in December 2024, as Macy's faced pressure to monetise its  GBP 9 billion property portfolio, demonstrating different approaches to retail real estate strategy. This pattern of retail consolidation and real estate monetisation mirrors the historical examples mentioned in the text, suggesting a continuing cycle of value destruction in traditional department store retail.

Hudson's Bay: a look at Richard Baker’s legacy