An iconic building in downtown Victoria is about to undergo another transition: owner Townline has announced the Victoria Public Market in The Hudson building will be closed and the space leased to become an urban-format grocery store.

In an ironic twist of timing - considering the building's namesake Hudson's Bay Company is also facing extinction due to a Companies' Creditor Arrangement Act proceeding - Townline has decided to end efforts to revitalize the ground-floor market.

Designed to accommodate 18 tenants, 11 of the spaces in the market are currently unoccupied.

"Given these realities – and after careful deliberation – we have decided to repurpose the space," Townline president Daryl Simpson said in the announcement. "To do so, we have informed our current market tenants that we will soon cease operations of Victoria Public Market. Tenants have up to six months to transition out of their current spaces."

Simpson said the market was never able to recover after the COVID-19 pandemic, despite ongoing population growth in Victoria and the surrounding region.

Grocery store to open in 2026

"When Townline opened Victoria Public Market 12 years ago, we were excited to welcome residents, neighbours and tourists to what would become a special place for many," Simpson said. "Unfortunately, like countless businesses, our tenants felt the impacts of the global pandemic."

While Simpson did not reveal the identify of the new tenant, he called it "a full-service, urban-format Canadian grocery store". The retailer is scheduled to open in the space early in 2026.

"In addition to being an essential service, the grocer will create jobs and provide tremendous value to the community."

As downtown cores across Canada have experienced population growth thanks to densification efforts to control urban sprawl, the need for grocers in the cores has grown. All the major Canadian-owned retailers - Loblaws, Empire and Metro - have been responding with a range of banners and store configurations designed to provide for essential and everyday needs. Smaller, locally owned businesses and ethnic-themed grocers have also been leasing spaces in these locations.

Townline notes that some space could still be available for lease in the former market area. It plans to put any additional space out to lease at some future point.

History of The Hudson building

The six-storey building, located along B.C.'s Highway 1 and bordered by Fisgard and Herald streets, was for many years the sprawling home of the Hudson's Bay department store, before the retailer began selling off properties as it began a slow decline.

Townline renovated the building in 2010 into retail space on the lower level and a collection of premium flats, double-height lofts and penthouses. It now boasts 152 housing units.

The Hudson is now part of the Hudson District, a five-phased mixed-use development by Townline and Peterson Group. It is comprised of five towers offering a range of housing options, retail and commercial space constructed over several years and ranging from 12 to 25 storeys.

About Townline

Townline is a Vancouver-based developer, real estate owner and operator which also has an office in Victoria.

The Townline Group of Companies recently completed two non-market residential projects in the south island in collaboration with Cool-Aid Society, M’akola Housing Society and BC Housing, and is preparing to break ground on another non-market residential project in downtown Victoria. Townline will also begin occupancy this summer at a new high-rise tower on the corner of Vancouver and Pandora streets.