Canada’s Hudson’s Bay Company to Close All Stores

Answer the following questions to check your understanding of the story.

What does Hudson’s Bay Company produce?

Hudson’s Bay Company produces ____________.

a) Hudson’s Bay branded merchandise

b) Canadian souvenirs

c) furniture and appliances, towels, bedding, clothing, and footwear

d) retail services

Why is the market in which the Hudson’s Bay Company competes a competitive market?

a) Hudson’s Bay competes with a small number of brick-and-mortar retailers and each retailer charges the same prices.

b) Hudson’s Bay sells services that aren’t available from other brick-and-mortar stores.

c) Other stores can easily enter the market, Hudson’s Bay has no advantage over new competitors, and everyone is well informed about prices.

d) Hudson’s Bay is often located as the anchor store in a large shopping mall.

How does the convenience of online shopping change the bricks-and-mortar retail market?

____________ bricks-and-mortar shopping.

a) Changing preferences are decreasing the demand for

b) The rising relative price of bricks-and-mortar shopping with respect to online shopping is decreasing the demand for

c) The rising relative price of bricks-and-mortar shopping with respect to online shopping is decreasing the supply of

d) Changing preferences are decreasing the supply of

Why is the Hudson’s Bay Company exiting the bricks-and-mortar retail market?

Hudson’s Bay Company is exiting the bricks-and-mortar retail market because _____________.

a) a decrease in customers is making it difficult for Hudson’s Bay to retain employees

b) a permanent decrease in customers is resulting in economic losses

c) the amount of online retailing competition is increasing

d) it is losing more than half of its customers to online retailing

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