TORONTO -- Personal sellers were once a tool exclusive to the rich and famous, but the chief executive of Hudson's Bay says there's room for his company to build stronger one-on-one relationships with more of its customers through technology.
Gerry Storch, who became head of the department store chain last December, says personal selling is "one of the most important applications" in the pocket of Hudson's Bay and Saks Fifth Avenue as it navigates an evolving market where customers expect personalization.
"Increasingly, consumers don't think about stores as physical locations. They think about stores as brands they interact with," he said after delivering a keynote speech on the future of retail at the Store 2015 retail conference, held by the Retail Council of Canada.
For years, high-end retailers like Holt Renfrew and Saks have used personal relationships between its clerks and shoppers to drive sales with customers who have lots to spend. The objective is to create loyalty that extends beyond a handshake and exchange of money at the register.
Store employees will often text and email their best customers to let them know about exclusive events or new products.
Storch said he wants to bring a variation of that practice to Canadians who won't drop thousands of dollars every time they shop, but still want to feel valued.
"The opportunity is to start customizing that on a mass scale so you simulate the personal selling experience on a mobile device," he said.
"I believe that's a big opportunity down the line."
Hudson's Bay (TSX:HBC) has been developing its reputation with an emphasis on brand names that appeal to the growing aspirational upper middle class in Canada.
"We're convinced there is an underserved market for high-end luxury in Canada," Storch said.
"We certainly believe that's true for Saks Fifth Avenue."
The focus on high-priced fashion has left a void in the Hudson's Bay portfolio, which once also catered to customers on a budget through its Zellers brand, which the company decided to wind down in 2011.
Leases for the discount chain were sold to Target for $1.8 billion before the U.S. company fumbled its launch and retreated south of the border earlier this year.
Storch said Hudson's Bay won't use Target's failure as an opportunity to return to discount retail.
"The market in Canada is totally saturated by one player," he said.
"I don't think anyone can compete with Walmart successfully in the discount sector anymore. They're too big and they're too good."