The former Hudson's Bay property in downtown Victoria has been repurposed by Sabayons, a new department store, injecting activity into a space left vacant by the nationwide closure of Hudson's Bay locations. This shift marks a significant alteration in the retail landscape, with Sabayons, an extension of the existing Market Garden boutique grocer, officially opening its doors in December 2025. The venture occupies a prominent corner at Government and Fort streets, an area that had fallen silent following the department store's exit.
A New Retail Configuration
Sabayons, under owner Ryan Townsend, presents a distinct model from its predecessor. Instead of traditional department store layouts, the space is curated with a mix of local produce, imported foods, and niche culinary items. This is complemented by themed rooms, eschewing standard grocery aisles for an intentionally meandering path designed to create a different shopping experience. This approach contrasts sharply with the vast square footage, averaging 152,000 square feet per store, that Hudson's Bay previously commanded.
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The Shadow of Vacancy
The transformation by Sabayons occurs against a backdrop of widespread retail emptiness following Hudson's Bay Company's collapse. While some properties have found new purpose, a substantial number remain vacant. It is reported that around 73 former Hudson's Bay locations nationwide continue to stand empty, including significant retail spaces in major cities like Toronto, Vancouver, and Montreal.
A Calculated Endeavor
Townsend's foray into the former Hudson's Bay space was not a spontaneous reaction but a long-held ambition. Securing the lease for the ground floor of the former department store was finalized in late August, prior to its official opening. This move highlights a strategic repurposing of large retail footprints, a challenge faced by other property owners as well. Notably, plans for other ventures, such as a proposed chain of department stores by Liu’s company Central Walk, have yet to materialize, with no confirmation on whether these expansions are still pursued.
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Background
The Hudson's Bay Company, a business with a 355-year history, ceased operations across its 80 stores, alongside 16 more under its sister Saks banners, initiating a complex legal winding-down process. The subsequent vacancy of these large retail sites has presented both challenges and opportunities for urban centers. Sabayons' adaptation of the Victoria location serves as an early example of potential redevelopment strategies for these prominent commercial properties.