Canada-based retailer Hudson’s Bay Company (HBC) is set to close its Home Outfitters business in the country this year.

The retailer is also considering closing up to 20 Saks OFF 5TH stores following a review of the total 133 stores in the US.

These decisions are part of the company’s strategic plan to reduce costs, simplify the business and improve overall profitability.

HBC currently operates 37 Home Outfitters locations in Canada.

According to the company, the strategic review of the Saks OFF 5TH store will allow HBC to focus on the best performing locations and its online platform thsaksoff5th.com.

“Further streamlining our retail portfolio enables even greater focus on our businesses with the strongest growth opportunities.”

Earlier this month, the Canadian retailer also sold its Lord & Taylor Fifth Avenue property in Manhattan, US, to WeWork Property Investors (WPI) for a total consideration of C$1.1bn ($850m).

HBC CEO Helena Foulkes said: “Further streamlining our retail portfolio enables even greater focus on our businesses with the strongest growth opportunities.

“The divestiture of Gilt, rightsizing of Lord & Taylor, the recent merger of our European retail operations in Germany, and today’s announcement exemplify the bold strategic actions we are taking to set HBC up for long-term success.

“We know this news is difficult for our associates. We are grateful for their ongoing efforts to serve our customers and we will work to find opportunities within HBC for impacted team members where possible.”

HBC currently operates 350 stores under various formats, including luxury and premium department chains. It has more than 45,000 employees worldwide.

Brands operated by the company in North America include Saks Fifth Avenue, Hudson’s Bay, Lord & Taylor, and Saks OFF 5TH.