"Capital One ending Costco and Hudson’s Bay contracts" - Article | Credit card reward programs | Discussion forum

Thanks for the news although I am not happy to hear it.

I am worried about HBC. I've had an HBC credit card (with tons of credit on it) for many years. I only use it for shopping at HBC, specifically to get the 90 day return policy on purchases. This has saved me a lot of money, especially when buying for other people. And I don't want to lose that big fat credit limit, which is always handy as a back-up although I've never actually used it.
HBC, as a retailer, is vulnerable right now and I wonder if they are strong enough to interest another CC issuer. Let's hope they are smart enough to use this as an opportunity to create a new attractive card.
I would really like The Bay to survive, but they, like Eaton's and Simpson's, have not really made the transition to what a department store needs to be these days. They keep eliminating departments and their website is annoying. I sure don't want to be stuck with Walmart and Amazon!

The Costco one is next to useless in my view, but perhaps it suits some people. Hopefully they can negotiate a better product next time around. However, I remember being astonished at how many people were lining up for the Capital One card at Costco after they ditched AmEx, so maybe they don't need to.

My main cards are both Cdn Big Bank cards, and I will be sticking with them. I am more confident that they are not going to close up shop, and they too have been around a long time and have high limits.

Not anymore. The HBC credit card operations used to generate as much profit as (and sometimes more than) the selling of merchandise. However, HBC sold its credit card operations long ago in 2006.

Any credit card interest charges and interchange now have been going to Capital One and not HBC.

HBC just provides the branding. It is actually not up to HBC alone to come up with an attractive card.

HBC could wish for a card that gives holders 5% back in some kind of HBC points. But, no card issuer would do that because the issuer only collects 1% to 2% in interchange. HBC would have to give the issuer a 90% discount on the points so that the points only cost 0.5% to the issuer.

Mall shopping generally is not doing very well from what I can see. Cadillac Fairview said something the other day about theirs which was not encouraging but I forget the details. HBC remains an anchor tenant so they need to keep it going if possible as the number of available anchor tenants is limited.
Malls , generally, in my view, are a waste of time. They all have the same stores selling the same stuff, more or less, with the same annoying music and stinky food courts. On the rare occasions when I must go there, I can't wait to leave. The HBC stores usually have direct access from the outdoors, so one can get in and get out without having to deal with the mall.

HBC may not be doing that well but it's till a great place to shop in my view. They have great sales. It's a good place to buy gifts which can be returned at any store without a hassle (especially if you have the CC extended return policy!). You can order online for home delivery or store pick-up, and can return online purchases at a store if one is convenient to you, eliminating the need to package them up and pay for mailing.

But they have not navigated the transition in shopping habits very well. Their HomeOutfitters stores never even got off the ground with online shopping; Zellers couldn't keep up with WalMart (but neither could Target).
Online descriptions of HBC items are inadequate; I still haven't figured out how to get something OUT of my "basket"; and I find it difficult to find what I'm looking for or to find what it is exactly that they still sell! Is it really that hard to run a good website?

There is something very wrong in the retail world because, increasingly, i really don't know where to look for things I would like to shop for and see in person before buying. And some of my friends are saying the same thing. The idea of being able to go into a store, find what you want, buy it, and leave with it in your hand, ought to still be a no-brainer in this impatient age. No waiting!

The last time I bought a new watch was in 1993, at a jewellery store on a main street. I walked in, selected a watch, bought it, and left; took about 10 minutes. Now, it would take me longer than that to even find a jewellery store. I happen to live in the same general area I grew up in. There was a large jewellery store at a major intersection nearby from my childhood in the 1950s until about 10 years ago. I don't even know where to find one now.

In any event, HBC and jewellery stores are just examples. The point is that I think a significant number of consumers are as frustrated as I am and the retailers are not bridging the gap.

If you have any Bay gift cards or HBC points, use them up! I made a point of using up my gift card in 2019 and have been transferring HBC points to AirMIles automatically so that I wouldn't be stuck with a small amount that I couldn't do anything with. I hope the latter is still in effect!

I miss Eaton's!

Loonie said
…Online descriptions of HBC items are inadequate; I still haven't figured out how to get something OUT of my "basket";…

Click on the little x to the right of the price of the items in the list of bag contents.

I agree.

Their web site designer could have added a "Remove" link beside the "Edit" and "Add to Wishlist" links. The designer could have also allowed one to decrease the item count from one to zero.

Loonie said
…
There is something very wrong in the retail world because, increasingly, i really don't know where to look for things I would like to shop for and see in person before buying. And some of my friends are saying the same thing. The idea of being able to go into a store, find what you want, buy it, and leave with it in your hand, ought to still be a no-brainer in this impatient age. No waiting!
…

The challenge for the retailers is the "showrooming" behaviour of shoppers. Future Shop was one of the first retailers to be hit by it.

Shoppers will go into a store, find what they want by looking at items in-person, and leave without buying the item at the store.

Instead, they go home and order the item from an online competitor because of the lower online price.

Terrible news if Costco CapOne card disappears. That's pretty much all my wife and I have used since it came along. Have kept our TD Visa and Amex cards active, but that's about it.

The tap n go plus 2% cashback on Gas, is Great for us. 3% on any restaurant purchases is also appealing, and I can live with the 1% on everything else, for a zero cost credit card.

The peace of mind for doubling up length of warranty on items purchased with the card is also welcome.

Always nice to get that yearend Coupon and cash it in. We stash it away for something special, that we might not ordinarily purchase.

Oh well, hopefully, they will partner with someone with even better perks.

Loonie said
…

The independent store where I bought my first stereo many decades ago is still in business and I still shop there and refer people there. They are in what must surely be a high rent location. They give excellent service. When I went to buy my second stereo, the same salesman was still there and I went directly to him. He knew his merchandise. He has retired now. You told him what you were looking for and he immediately knew what he could offer, and you went home happy.

Those kinds of experienced salespeople and stores are not easy to sustain these days with the lower retail markups resulting from competition with online stores like Amazon.

Not all shoppers are willing to pay extra for that. I bought my first digital SLR camera from Future Shop. I knew what I wanted. I wasn't willing to pay hundreds of dollars more at one of the independent camera stores in town for the same camera.

It was good that store didn't charge that much extra. Unfortunately, that wasn't the case for me. Future Shop was the only place in town where that Canon digital SLR was under $1,000. Future Shop threw in an HP colour ink jet printer for the price!

Moving upscale won't work in a lot of places. There will always be people who want and value the good service. But, in smaller cities, there aren't enough of them to keep a store going, especially with high end merchandise.

For example, not many people will pay $500 to $1,000 for a CD transport and then another $500 to $1,000 for the digital-to-analog converter to turn it into analog. $1,000 to $2,000 just to get the audio off a disc. Then, more money for the power amp and speakers?

One local stereo store was in business for over 50 years. Had two decent sized locations at different ends of town. Margins were becoming too thin in order to compete. Owner wound the business down.

He was going to go out with "head held high" and not stiff his suppliers. He wasn't going wait until the money ran out and enter bankruptcy, leaving suppliers and creditors unpaid.