News that Zellers, the once-dominant Canadian discount retailer that disappeared from the national retail landscape more than a decade ago, is making a comeback was the talk of the retail industry this past week.
The first new store, spanning 60,000 square feet, will open at Londonderry Mall in Edmonton, the news was confirmed by landlord Leyad, which owns the shopping centre, making this the first announcement of a tenant filling a former Hudson’s Bay space since the department store chain’s collapse earlier this year.
Sources tell Retail Insider that INC Group’s owner is behind the new chain.
Bruce Winder, a retail analyst and author, said the quiet reincarnation of Zellers is interesting.
“Will Canadians maintain the level of initial excitement in Edmonton as when the former Bay gave it a go a couple of years ago? Maybe. Maybe less so. I think the success of Zellers in Edmonton will depend on what merchandise is in the store, at what price point and specification and the experience and ease of shopping,” he said.
“No doubt that there is a large and growing market for value (think Dollarama & Giant Tiger) so the timing could be right to cater to this target segment.
“Either way, the owners are wise to open one store and see what happens.”
George Minakakis, CEO of the Inception Retail Group, said these resurrections often look like you are trying to catch a falling star.
“However, if I speculate, they may see an opportunity in capturing a niche of customers that HBC left behind after closing. I am not saying it is mid-market, because that is not who Zellers was as a brand; I am thinking of capturing the consumer who faces affordability challenges. That means the right assortment of products, and they need to move out the door fast,” he said.
“However, I am also not convinced that this should be a play on nostalgia; that is not a good strategy, especially for a defunct brand that has also failed to be resurrected. I see it differently; this incarnation should be dubbed not your grandmother’s Zellers, but rather what Zellers would have become if it had never closed. That would be a viable strategic move with the proviso that you have a clear vision of what the consumer and business model of this brand incarnation is about.
“And before anyone gets excited about growth, prove the consumer model first; selling apparel is a challenging game. And if you are trying to sell it through a brand that will be value-driven, that already has competition from Winners, Costco, Walmart, and online. Value-driven is about price, and that means a significant amount of product needs to move for the revenue needed to keep the lights on in a 60,000-square-foot store. Not impossible, but we’ve been here before.”
Michael Kehoe, Broker of Record for Fairfield Commercial Real Estate, said the return of Zellers to the Canadian retail scene with the debut of a store at Londonderry Mall in Edmonton is welcome news.
“I commend the shopping centre ownership for securing a Canadian solution for this key position at Londonderry with a 60,000-square-foot store. Edmonton is a Zellers market if there ever was one and the northeast demographic in the Londonderry Mall primary trade area is a perfect fit for the proposed new retail offering. I am impressed by the relatively fast turnaround of the space from HBC to the new Zellers format and the Canadian shopping centre industry can take note that bold action is possible and should be emulated. This along with the rumoured new operators of the Zellers brand is a national good news Canadian retail story,” he said.
“The anticipated new Zellers retail offering focused on apparel for women, men, and youth, along with contemporary home décor will be familiar to many shoppers and I expect the model will be welcomed by Edmonton shoppers and beyond as the brand hopefully rolls out across the country.
“The Canadian shopping centre industry plagued by risk aversion, a lack of innovation and imagination in recent years needs some good news in 2025 and the Zellers Londonderry announcement bodes well for shoppers and shopping centre owners alike across our great land.”
Gary Newbury, Rapid Performance Recovery Expert, Consumer-Driven Supply Chains at RetailAID.ca, said the return of Zellers at Londonderry Mall signals more than the rebirth of a familiar brand. It’s a test of whether nostalgia can be converted into sustainable retail performance.
“At 60,000 square feet, this is no pop-up. It demands a well-oiled supply chain: disciplined replenishment cycles, breadth across home, seasonal and HBA categories, and an environment that signals freshness rather than clearance. If Zellers 3.0 positions itself merely as an outlet for low-cost apparel, it risks alienating shoppers who still associate the name with full-line value retailing,” he said.
“The brand’s equity is undeniable. This would be an unwise gamble if it was not. Canadians across a couple of generations can still recall the Club Z program and “lowest price is the law.” But brand recognition without execution is fragile. INC Group’s track record in discount fashion suggests a risk of over-promising and under-delivering.
“To earn staying power, Zellers 3.0 must look beyond signage and sentiment. Success will hinge on operational excellence: timely inbound flows, clarity in category leadership, and a shopping experience that delivers credibility against entrenched rivals like Walmart.
“In today’s market, branding alone won’t cut it. It’s the supply chain’s performance and executive leadership through this start up phase which will decide whether this comeback is a milestone or a misstep.”
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To be successful, the new Zellers must offer more than just apparel. It needs to also include departments that were popular during the original incarnation of Zellers, such as housewares and toys. Otherwise it will be little different from Winners and Marshall’s, which dominate that segment of the market and have previously driven off several other competitors.
I saw it looks like a dumping ground for old clothes from fairweather, urban behavior etc.
its not going to be successful
Damnit — and probably no restaurant I’m assuming, given how quickly the store was built (I’m not even sure if restaurant infrastructure is there from the previous tenant)