Starting with a 300-Year Battle for Control of Canada’s Fur Trade
THUNDER BAY – BUSINESS – For over three centuries, two of Canada’s most iconic trading enterprises, Hudson’s Bay Company (HBC) and the North West Company (NWC), engaged in a fierce struggle for dominance over the North American fur trade.
This competition shaped Canada’s economic and geographic development, with the legacies of both companies still felt today.
Today, the Hudson’s Bay Company faces a very uncertain future. Yet its once rival the North West Company is thriving.
How did things evolve and how did the Hudson’s Bay Company get to the point of being under creditor protection?
Origins of the Conflict: A Monopoly Challenged (1670-1779)
The Hudson’s Bay Company was established in 1670 when King Charles II granted it exclusive trading rights in Rupert’s Land—an enormous region covering much of present-day Canada. HBC operated through a system of permanent trading posts along Hudson Bay, relying on Indigenous trappers to bring furs directly to their forts.
By the mid-18th century, independent Montreal-based fur traders, primarily of French descent, began challenging HBC’s dominance. After the British conquest of New France in 1763, these traders reorganized under the North West Company in 1779, forming a powerful rival to HBC.
Unlike HBC, the NWC adopted a more aggressive business model, sending voyageurs deep into the interior to trade directly with Indigenous communities.
Fort William: The Heart of the North West Company’s Fur Trade Empire
Fort William, now modern-day Thunder Bay, Ontario, was a crucial hub for the North West Company (NWC) during the height of the fur trade in the late 18th and early 19th centuries. Established in 1803, the fort served as the primary headquarters and transshipment point for the NWC’s vast trading network, linking the fur-rich regions of the northwest to markets in Montreal and Europe. Every summer, Fort William became the site of the Great Rendezvous, where voyageurs, Indigenous traders, and company partners gathered to exchange goods, negotiate deals, and plan for the upcoming trading season. This event was vital for maintaining strong relationships with Indigenous nations, whose knowledge and labor were essential to the company’s success.
Strategically located on the shores of Lake Superior, Fort William was the perfect midpoint between the western interior’s fur-producing regions and the eastern cities where furs were sold. From here, furs collected from the Canadian Prairies and beyond were transported eastward by canoe, while European goods such as firearms, metal tools, and textiles were shipped westward to trade with Indigenous trappers. Unlike its rival, the Hudson’s Bay Company (HBC), which relied on fixed trading posts along Hudson Bay, the NWC’s inland strategy—anchored by Fort William—allowed it to access deeper fur territories and create a more efficient trade network. This competitive advantage made the NWC the dominant force in the North American fur trade until its forced merger with HBC in 1821.
Beyond its economic importance, Fort William was also a centre of cultural exchange and diplomacy. Métis traders, European merchants, and Indigenous leaders regularly gathered here, fostering a unique multicultural environment that shaped the identity of the region.
The fort’s operations helped establish Thunder Bay as a key economic and transportation hub, a role it continues to play today.
Though the fur trade era has long passed, the Fort William Historical Park preserves this rich history, offering visitors a glimpse into the bustling trade centre that once defined the region and played a pivotal role in shaping the development of Canada.
This expansion allowed NWC to control vast territories that HBC had overlooked.
Fierce Competition and Escalating Tensions (1780-1821)
Throughout the late 18th and early 19th centuries, the rivalry between HBC and NWC intensified. Key differences in their operations fuelled the conflict:
Trading Strategies
- HBC’s “Stay by the Bay” Policy: Relied on Indigenous traders to bring furs to their coastal posts.
- NWC’s Inland Strategy: Built an extensive network of trading posts deep into Indigenous lands, reducing the reliance on middlemen.
Geographic Expansion
- NWC established Fort William (now Thunder Bay) as a major inland headquarters, strengthening their presence in Western Canada.
- HBC responded by building inland posts to counter NWC’s encroachment.
Clashes and Violence
The competition was not just economic—it turned violent. The most infamous clash occurred in 1816, at the Battle of Seven Oaks near present-day Winnipeg. A skirmish between HBC settlers and Métis fighters aligned with NWC resulted in 21 deaths, marking a turning point in the rivalry.
The Merger of 1821: HBC Triumphs
By 1820, both companies were facing financial strain due to over-expansion and dwindling fur supplies.
The British government intervened, forcing a merger in 1821, with HBC absorbing the North West Company.
Under the new structure:
- HBC adopted NWC’s inland trading methods, establishing a stronger presence in the interior.
- Many former NWC traders and voyageurs joined HBC, bringing their expertise to the company.
- The fur trade became more centralized under HBC’s control, giving the company near-total dominance over Canada’s economy.
Legacy of the Rivalry
Although the North West Company ceased to exist as an independent entity, its spirit endured.
The Métis Nation, which played a crucial role in NWC’s success, continued to influence Canadian history, including in the Red River Rebellion of 1869-70.
Meanwhile, Hudson’s Bay Company evolved into a modern retail giant, eventually transitioning from fur trading to department stores.
Almost every major city in Canada had a huge Hudson’s Bay Company store. “The Bay” as it is widely known offered in its day almost everything you could imagine.
Growing up in Winnipeg, the massive Bay store in downtown was a regular shopping stop with foods from all over, a candy department that had everything a child might desire and everything from clothes to furniture and appliances.
Today, HBC still operates, though it faces its own financial struggles in the evolving retail market.
Interestingly, the North West Company name was revived in 1987 as a successor to HBC’s northern trading posts.
The modern NWC operates retail stores in remote northern communities, maintaining a connection to its historic roots.
A Tale of Two Companies: Modern-Day Success vs. Financial Collapse
While Hudson’s Bay Company dominated Canadian retail for much of the 20th century, the 21st century has been far less kind. After struggling with declining sales, mismanagement, and failed expansions, HBC entered creditor protection in 2025, with more than half its stores at risk of closing.
In contrast, the North West Company—revived in 1987—has quietly built a successful retail empire, thriving in regions where Hudson’s Bay once held dominance.
The Rise of the Modern North West Company
The modern NWC specializes in retail operations across remote and underserved communities in Canada, Alaska, the Caribbean, and even the South Pacific. With a business model focusing on essential goods, grocery retail, and community-based services, NWC has secured consistent profitability while HBC struggled.
🔹 Key North West Company Facts (2025):
✔ Operates over 200 stores under banners like Northern, NorthMart, and Quickstop
✔ Provides essential food, pharmacy, and general merchandise to isolated communities
✔ Generates stable revenue from government contracts and long-term supply agreements
✔ Thrives in markets HBC abandoned, such as Northern Canada and smaller towns
Hudson’s Bay Company: A Retail Titan in Crisis
HBC, once Canada’s largest retailer, failed to adapt to modern retail trends. Cost-cutting, underinvestment in stores, and a mismanaged e-commerce expansion left the company in financial turmoil.
🔹 Key HBC Struggles (2025):
❌ $1.1 billion in debt, including unpaid rent to landlords
❌ Entered creditor protection, with up to 40 stores at risk of closing
❌ Dependent on landlord bailouts to survive
❌ Failed e-commerce investment did not yield returns
North West Company’s Success Where HBC Failed
The North West Company’s business model has been its key to survival, focusing on:
✅ Essential goods over luxury retail – NWC sells groceries and medicine, while HBC struggled with fashion retail.
✅ Serving remote communities – NWC dominates where HBC once had strongholds, like Northern Canada.
✅ Stable government partnerships – Contracts with Indigenous and Northern Affairs Canada ensure steady revenue.
✅ Smart expansion strategy – Instead of acquiring failing chains, NWC built sustainable growth.
In contrast, HBC focused on high-end retail and big city malls, which suffered as consumer habits shifted online and away from department stores.
The Diverging Fortunes of The North West Company and Hudson’s Bay Company
A Comparative Analysis of Two Canadian Retail Giants
Over the past five years, The North West Company and Hudson’s Bay Company (HBC)—both with deep roots in Canada’s retail history—have experienced markedly different financial trajectories.globenewswire.com+1yahoo.com+1
The North West Company: Steady Growth and Strategic Expansion
Subsidiaries and Operations
The North West Company operates a diverse portfolio of retail businesses, including:
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Northern: General merchandise stores serving remote communities in Canada.northwest.ca+5en.wikipedia.org+5growjo.com+5
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NorthMart: Similar to Northern, with an expanded selection of products.
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Giant Tiger: Discount stores offering a range of merchandise.northwest.ca+13reddit.com+13thewalrus.ca+13
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Alaska Commercial Company: Retail stores serving communities in Alaska.
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Cost-U-Less: Warehouse club-style stores in the Caribbean and Pacific regions.
Financial Performance (2019-2023)
The North West Company has demonstrated consistent growth over the past five years:
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2019: Sales reached $1.796 billion, marking the 16th consecutive year of sales growth. northwest.ca+4northwest.ca+4northwest.ca+4
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2020: Sales increased to $1.953 billion.
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2021: Sales grew to $2.062 billion.
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2022: Sales rose to $2.247 billion.
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2023: Sales further increased to $2.470 billion.
This steady upward trend reflects the company’s effective strategies in catering to niche markets and maintaining operational efficiency.
Hudson’s Bay Company: Decline and Financial Challenges
Subsidiaries and Operations
Hudson’s Bay Company has managed several retail brands, including:
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Hudson’s Bay: Department stores across Canada.
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Saks Fifth Avenue: Luxury department stores in the United States.northwest.ca+17en.wikipedia.org+17northwest.ca+17
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Saks Off 5th: Off-price retail chain offering discounted luxury goods.
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Galeria Kaufhof: Department stores in Europe (divested in recent years).
Financial Performance (2018-2022)
HBC’s financial performance has been marked by volatility:
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2018: Sales stood at $9.4 billion, down from $14.5 billion in 2016. thewalrus.ca
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2019: Sales declined to $8.2 billion. growjo.com
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2020: Sales decreased further to $7.5 billion.
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2021: Sales dropped to $6.8 billion.
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2022: Sales fell to $6.2 billion.
The consistent decline in sales reflects challenges such as increased competition, shifts in consumer behavior, and difficulties in adapting to the digital retail landscape.
Recent Developments
As of March 2025, Hudson’s Bay Company is under creditor protection, facing potential liquidation unless a viable restructuring plan is implemented.
Conclusion
The contrasting fortunes of The North West Company and Hudson’s Bay Company over the past five years highlight the importance of strategic focus and adaptability in the retail industry. While The North West Company has thrived by serving specific markets with tailored offerings, Hudson’s Bay Company has struggled to maintain its position amidst evolving consumer preferences and market dynamics.
Conclusion: A Rivalry That Shaped Canada
The competition between Hudson’s Bay Company and the North West Company was more than a corporate feud—it shaped the economic, geographic, and cultural fabric of Canada. From the founding of Fort William (Thunder Bay) to the Métis resistance, the echoes of this historic struggle remain part of the nation’s story.
Though HBC ultimately emerged victorious in the fur trade, the legacy of both companies continues to influence Canada’s commerce, exploration, and Indigenous relations to this day.
