Historic Hudson's Bay store in Banff to close

It's the end of the line for The Bay in Banff.

Canadian retailer Hudson's Bay Companyannouncedits department store at 125 Banff Ave.will shut its doors in August.

It's a decision the company said reflects its vision for the future as well as market changes.

"While these decisions are difficult, they are the right ones for our business," said Tiffany Bourr, a spokesperson for the Hudson's Bay Co., in a statement sent to CBC News.

"We are committed to treating every associate with respect and fairness through this process, and transfer opportunities will be explored where feasible."

Last month, the company announced it was laying off two per cent of its total workforce, estimated to be about 250 employees, in corporate roles largely within Canada.

She did not say how many workers could be laid off as a result of the Banff Avenue closure.

The Hudson Bay Company has operated stores in the tourist town for at least 80 years. The first department store opened in 1935 and was located at Caribou Corner on202 Banff Ave.

Thatbuilding is still standing today it'sa mall with retail shops and restaurants.

In 1947, the company movedto its current location at 125 Banff Ave. and expanded in 1979.The store covers around 20,000 square feet and has two levels.

'Cultural contributor'

It sells everything you'd expect to find at any Bay department store across Canada, including accessories, clothing and shoes, as well as the iconic HBC stripes merchandise that's become synonymous with the brand.

While it may not bethe most popular store in town for locals, a retail expert said it'll be missed by a specific group in particular.

"It's a wonderful place that is really going to be missed by all of the Japanese tourists, because it's a tourist store, it's not really a Bay department store," said Jim Danahythe CEO of CustomerLAB.

"There's no way that store was a significant contributor, it was a cultural contributor but a store, in a community of that size, is not the Bay's model."

He doubts the company's total sales will take a hit from the closure of the Banff Avenue location, and that those who shopped there will just revert to online shopping.

The company said it is also shutting another Alberta store at the same time at the Londonderry Mall in northeast Edmonton.

There is no word on what will open in place of The Bay in Banff or whetherit will return to the tourist town using a different retail model.