Brand with stripes

Happy Friday, sippers

How was your short week?

Mine was even shorter coming back from a very sunny London, walking the city, playing tourist and sharing outstanding meals at Noble Rot and Brat with my step-daughter who's studying at UCL (neuroscience no less!) for a semester. 

But before leaving, I read with pride a happy ending story for a brand loved for 355 years and wanted to make it the heart of what you'll read today.

If uncertainties mark the theme of 2025, sparking noticeable shifts in consumer behaviour and mimicking what we had already observed in COVID times: buying local. Consumers feel the need to do their part in supporting the local economy and a direct connection to the well-being of their communities. No matter what country they're from.

For Canadians, it meant searching 30x (19x for Americans) more than usual Made in Canada when considering buying anything in recent months.

Hudson's Bay Company is a deep-rooted symbol of Canadian heritage. 

No discussion of The Bay is complete without acknowledging its profound and often difficult historical relationship with First Nations. From its very inception in 1670, The Hudson's Bay Company's massive success was inextricably linked to Indigenous knowledge, trapping skills, and trade networks. Primarily a fur trading company, its iconic multi-coloured stripes motif originating from its "point blankets" is instantly recognizable and a beloved national symbol.

And after 355 years in business,closing its doors, permanently.

Canadian Tire has been "Canada's Store" since 1922, plain and simple. 

Synonymous with the practical, everyday needs of Canadians. As a young avid collector of "Canadian Tire Money," I cherished my Sunday visits with my dad. Good luck finding a Canadian who hasn't shopped there.

So, big news dropped: Canadian Tire is set to acquire the intellectual property (IP) of Hudson's Bay Company for roughly $30 million. This treasure trove includes the legendary HBC Stripes motif, the actual "Hudson's Bay Company" and "The Bay" names, plus houseware and apparel brands. Brilliant!  

• Goldmine at a Steal | For a fraction of what it would cost to build such a brand from scratch, Canadian Tire gains access to an instantly recognizable, emotionally resonant symbol of Canadian heritage and carries centuries of goodwill and cultural cachet.

• Zero Operational Headaches | Canadian Tire isn't buying struggling department stores; they're buying the brand. It's an asset-light masterstroke.

• Endless Product Playground | The potential to weave this beloved aesthetic into existing product lines is immense, instantly adding a premium, heritage feel.

• Patriotism & Public Relations Win | Feeling like a genuinely patriotic win for many Canadians and will generate significant, positive brand goodwill, a rare commodity in today's market.

This acquisition isn't unique and demonstrates an innovative way to brand building;

• Authentic Brands Group (ABG) has made a business out of it | Built an empire acquiring the IP of iconic, often struggling brands (think Barneys New York, Forever 21, Reebok, Brooks Brothers) and then licensing them out solely of the brand value.

• Overstock.com & Bed Bath & Beyond | Overstock.com acquired Bed Bath & Beyond's IP and then rebranded its entire business as Bed Bath & Beyond, highlighting the immense value of a known brand name in attracting customers, even if the underlying business model changes drastically.

• Google did it too | Acquiring Motorola Mobility primarily for its extensive patent portfolio to defend Android, later selling the hardware division to Lenovo while retaining valuable intellectual property.

All showcasing the true value of a brand often lies in its reputation, patents, story, and the emotional connection it holds with consumers, quite separate from its physical assets (read not the product it sells).

This acquisition means so many things for Canadian Tire. It could :

• Elevate its brand | Think infusing existing lines with The Bay's heritage and perceived quality.

• Tap into Nostalgia & Patriotism | Deepen emotional connections with consumers through genuinely culturally resonant products.

• Explore New Retail Frontiers | Maybe small, specialized sections within existing stores or even pop-ups focused purely on that iconic striped merchandise.

• New Revenues

But also offers watch-outs:

• Strategic Caution | While the potential is enormous, Canadian Tire must be incredibly cautious and strategic when using these brands.

• Avoid Dilution | Over-saturation or misapplication of the iconic stripes could dilute their established value and unique appeal.

• Balance Heritage & Modernity | The real key will be honouring the legacy and heritage while skillfully adapting them to Canadian Tire's existing business model.

Looks like Canadian Tire felt compelled to do their part

Can wait to see how it plays out.

See you next week