Zellers opens a dozen stores in Canada amid wave of nostalgia and price sensitivity

Canadian retail chain Zellers marked its official comeback on Thursday, opening a dozen stores in Ontario and Alberta and launching a new website.

The return of the discount department store comes amid a wave of nostalgia for the brand and growing demand for affordable goods as inflation pushes up the cost of living.

The company plans to open 25 locations across Canada within Hudson’s Bay department stores, Hudson’s Bay Co. spokeswoman Tiffany Bourre said.

The company will be phasing in the additional store openings over time, and isn’t ruling out the potential for stand-alone locations, she said.

The 10,000-square-foot Zellers stores will feature an assortment of products, including clothing, toys and home and living items, under the company’s in-house brand name Anko.

The private-label products are exclusive to Zellers within Canada, with no crossover between Hudson’s Bay and Zellers stores, Bourre said.

The company has also launched a Zellers e-commerce website, with all items online and in-store featuring so-called rounded pricing, so for example $5 rather than $4.99 or $5.49.

It’s about offering customers a “simplified and easy” shopping experience with reasonable prices for quality goods, Bourre said.

“Zellers is offering affordable products you can’t get it anywhere else in Canada,” she said. “It’s a really elevated product line with good prices.”

The relaunch of Zellers comes a decade after it closed most of its locations.

It also comes at a time when Canadians are seeking relief from the highest inflation in nearly 40 years, offering more competition in a discount market largely dominated by Walmart, Giant Tiger and Dollarama.

The resurrection of the retailer also taps into the nostalgia for the Zellers brand, evoking fond memories for some of meals at its diner and Zeddy, its teddy bear mascot.

While the footprint of the new Zellers stores — within the existing Hudson’s Bay department stores — does not accommodate a restaurant, the company will have food trucks at some locations offering the top menu items.

The five menu items are the big “Z” burger, hot chicken sandwich, grilled cheese, chicken fingers and fries with gravy.

The chain’s Zeddy mascot — which arguably elicited some of the greatest sentimentality among some former shoppers — is expected to make a return soon, Bourre said.

The mascot was adopted by a charity after Zellers wound down operations, she said.

“Zeddy has been in active service since Zellers closed,” she said. “He’s working hard in the background.”

The store is hoping to bring Zeddy back into stores soon with a charity component, Bourre said.

This report by The Canadian Press was first published March 23, 2023