Reference no: EM132289639

The Bay is Canada’s oldest department store, with 94 stores across the country. However, like other department stores in North America, store productivity has been slipping for years, and the Bay has been losing market share to speciality chains and global discounters. It is a grim situation for this venerable, old Canadian icon. In August 2008, Bonnie Brooks was appointed president and CEO of the Bay. She is the Bay’s first female CEO, and her mandate is to lead The Bay’s ambitious revival strategy. She has more than 30 years of experience in the retail fashion industry. Before returning to Canada, Brooks was president of Lane Crawford Joyce Group, a conglomerate that runs more than 500 stores in nine Asian countries. Brooks is credited with transforming Lane Crawford into a luxury retailer. So why did she decide to return to Canada to run the much smaller Bay? According to Brooks, “The role to transform the Bay from its existing format to word class was too compelling to pass up. Building exceptional retail destinations is not only my profession, it’s my passion.” It is believed that the Bay must make dramatic changes if it is to survive. The vision is to make it the dominant Canadian department store by improving the quality of its brands, its stores and its customers. Brooks knows that the existing senior executive team are amongst the best, and most experienced retailers in North America and is expecting to rely on them heavily during her transition. Brooks is known as being approachable and kind, and making sure everyone was content in their jobs. An industry-insider said that “she is a good boss which makes a huge difference, not only in the success of the business, but also in the happiness, and well-being of those who work for her.” However, the Bay has been subject to numerous makeovers over the past decade. While there are many skeptics, according to industry experts Brooks is one of the few executives with the savvy to change the Bay. They say she will bring a sense of style, glamour and fashion to the job. Brooks says about herself, “I just try to lead staff and get them together around a common point of view.”

What do the transformational leadership theories and approaches to leadership suggest she needs to do to be an effective leader at the Bay?