HBC Appoints Donald Watros to the Newly Expanded Role of President

Hudson’s Bay Company (TSX:HBC) (“HBC” or the “Company”) announced today that Donald Watros, currently the Company’s Chief Operating Officer, has been named President of HBC, a newly expanded role. This appointment is effective on February 1, 2014.

Mr. Watros will continue to report to Richard Baker, Governor and CEO. Together, Messrs. Baker and Watros continue to constitute HBC’s Office of the Chairman. HBC’s retail division presidents, including Marigay McKee and Liz Rodbell, as well as all corporate executive vice presidents, including the Chief Operating Officer, Chief Administrative Officer and Chief Financial Officer, will report to both Mr. Baker and Mr. Watros. The Company’s retail brands include Hudson’s Bay, Lord & Taylor, Saks Fifth Avenue, Saks OFF5th and Home Outfitters.

“Don Watros’ role as President is integral to a new, robust leadership structure that will focus on managing and growing HBC along with its strong and expanding portfolio of brands,” said Richard Baker. “Don’s significant retail experience combined with his track record of operational excellence were key in selecting him for this important role and will further our development as a premier North American fashion retailer,” he added.

“I am privileged to have the opportunity to work with Richard and our exceptional team to drive the future growth and value of HBC and our individual banners,” Mr. Watros commented. “As a veteran of both HBC and Saks, I will pay particular attention to integrating and delivering on the exciting promise of our merger, while also helping to support all our retail brands and shared services units and to guide the progress of the Company overall.”

Donald Watros was appointed Chief Operating Officer of Hudson’s Bay Company in April 2009. Prior to that appointment Mr. Watros worked at NRDC Equity Partners LLC. He previously held various management positions at May Department Stores and served as Chief Administrative Officer of Saks Fifth Avenue.

About Hudson's Bay Company

Hudson's Bay Company (HBC), founded in 1670, is North America's longest continually operated company. Today, HBC offers customers an unparalleled range of retailing categories and shopping experiences internationally. In Canada, HBC operates Hudson's Bay, Canada's largest department store with 90 full-line locations and one outlet store as well as thebay.com, unsurpassed in its fashion, beauty, home and accessory designers and brands. HBC also operates Home Outfitters, Canada's largest home specialty superstore with 69 locations across the country.

In the United States, HBC operates Saks Fifth Avenue, one of the world's pre-eminent specialty retailers, renowned for its superlative designer collections and first-rate fashion expertise. Saks Fifth Avenue comprises 41 full-line stores in 22 states, five international licensed stores, saks.com, 72 Saks Fifth Avenue OFF 5TH stores and saksoff5th.com. HBC also operates Lord & Taylor, a leading department store chain with 49 full-line store locations throughout the northeastern United States, in two major cities in the Midwest and in Boca Raton, Florida, and lordandtaylor.com. Hudson's Bay Company banners provide stylish, quality merchandise with a dedicated focus on service excellence. Hudson's Bay Company trades on the Toronto Stock Exchange under the symbol "HBC".