WeWork, the popular office-sharing start-up, has announced a new partnership with Hudson’s Bay Co, the owner of Saks Fifth Avenue, to operate co-working spaces within select department stores. With the ongoing pandemic leading to increased remote work policies, this strategic move aims to provide alternative workspaces for professionals.
Hudson’s Bay will be transforming sections of its department stores into co-working spaces, called SaksWorks. The first five locations are set to open next month, strategically placed across the Tri-State area, including the iconic Fifth Avenue flagship store in Manhattan. This expansion into co-working spaces aligns with Hudson’s Bay’s strategy to cater to individuals working remotely from suburban areas.
The COVID-19 pandemic has significantly impacted both WeWork and traditional brick-and-mortar retailers like Hudson’s Bay. As remote work became more prevalent, WeWork experienced a decrease in occupancy, leading to increased operating costs. Simultaneously, physical stores faced low foot traffic, resulting in declining sales for department stores across the United States.
To overcome these challenges, Hudson’s Bay has been actively investing in its digital business and forming new partnerships. Collaborations like the recent partnership with fast-fashion brand Forever 21 demonstrate the retailer’s commitment to adapting to the changing retail landscape and meeting the evolving needs of customers.
WeWork is also taking proactive steps to adjust to the new hybrid work environment. Alongside the partnership with Hudson’s Bay, WeWork has joined forces with real-estate services firm Cushman & Wakefield. Together, their aim is to assist landlords and businesses in creating flexible workspaces that cater to both remote and in-person employees. This partnership aligns with WeWork’s core mission of providing adaptable and flexible work environments for its clients.
Additionally, WeWork recently announced its plans to go public through a merger with a blank-check firm. Valued at $9 billion, this deal will provide WeWork with the necessary resources to continue expanding and meeting the evolving needs of the modern workforce.
In summary, the collaboration between WeWork and Hudson’s Bay represents an innovative solution to address the challenges brought by the pandemic and the increasing prevalence of remote work. By repurposing parts of department stores into co-working spaces, Hudson’s Bay maximizes the use of its physical locations while offering a convenient and flexible workspace option for professionals. Simultaneously, WeWork improves its occupancy rates and adapts to the changing demands of the modern workforce.
Useful links:
1. WeWork Official Website
2. Hudson’s Bay Company Official Website
