Simpsons-Sears
In 1952, General Robert E. Wood, the Chairman of U.S. retailer Sears, Roebuck and Co., sent a letter to Edgar G. Burton, President of the Robert Simpson Company of Toronto, proposing a partnership between their two companies in order to serve the Canadian market. The deal to create Simpsons-Sears Limited, a Canadian catalogue and department store chain separate from the Simpsons chain, was signed on September 18, 1952, and the terms were 50-50. Each company put up $20 million and had equal representation on the new company's board of directors. The new company was to have two main objectives. The first was to expand Simpsons' existing mail-order business, which was sold to the new company. The second goal was to build a string of stores modelled on Sears, Roebuck's format right across the country.
The agreement also contained a provision that would prove to be a major bone of contention in the coming years. Under its terms, Simpsons-Sears could not open a retail store within 25 miles of Simpson's existing stores in Toronto, Montreal, Halifax, Regina and London. In return, Simpson's promised not to build any stores outside of those five cities. Simpsons-Sears mail-order business, however, was free to operate anywhere in Canada, and so was the new Simpsons-Sears Acceptance Company, the credit arm of the operation.
The business operations of Simpsons-Sears began when the first Simpsons-Sears Spring/Summer Catalogue rolled off the presses of Photo-Engravers and Electrotypers, Ltd. and were delivered to 300,000 Canadian homes in early 1953.
On Thursday, September 17, 1953, the first Simpsons-Sears retail store opened in Stratford, Ontario at 9:15 a.m. The second Simpsons-Sears store opened in Kamloops, B.C., in December of that year.
In the 1960s, Simpson's was among the first 10 Canadian companies to start using computers in all their locations, and programming was done in Toronto and Montreal by accounting clerks, many of whom were women. Enormous rooms with special ventilation were built to house IBM punch card mainframe machines in those two locations.
In 1972, Simpsons and Simpsons-Sears agreed to end the 25-mile restriction and permit Simpsons and Simpsons-Sears stores anywhere. The following year, when Simpsons-Sears opened a store in the city of Mississauga, approximately 30 km west of Toronto, the company decided to use the Sears name alone in order to prevent confusion with Simpsons stores operating in Toronto.
Acquisition by the Hudson's Bay Company
In 1978, the Hudson's Bay Company acquired Simpsons and federal competition law required the partnership to terminate, thus Simpsons and Simpsons-Sears could no longer share facilities. Sears stores continued to carry the Simpsons-Sears name on signage and the name remained in use both informally and as its business name well into the 1980s. Simpsons-Sears officially changed its name to Sears Canada in 1984.[4]
Simpsons closed on June 27, 1981, the store in Regina, Saskatchewan it had operated since 1916 after four consecutive years of financial losses with that location.[5] It also closed its only store in Ottawa on January 29, 1983.[6][7] The 83,000 square feet multi-level store had never been profitable ever since Simpsons acquired it in June 1972 and was notorious for not having any escalators
The end
The Hudson's Bay Company attempted to operate Simpsons as a more-upscale nameplate than its main brand, The Bay, but was unsuccessful.[10] The chain's operations in Greater Toronto were merged with The Bay in 1991 and the Simpsons name was retired after a retail presence of almost 120 years.
Reasons for the Hudson's Bay Company's decision were the recession and the fact that it rarely made profits with the Simpsons stores ever since the acquisition in the late 1970s.[15] Simpsons struggled to stand out from The Bay.[16][17] Although Simpsons was slightly higher end than The Bay, the distinction was hardly noticeable to the average shopper. The Hudson's Bay Company came to the conclusion that it would be better to rationalize its operations than to divide its customer base.[15] Much of the operations of Simpsons and The Bay, such as purchasing, advertising and credit cards, had already been consolidated by the time HBC decided to merge the two chains.