“The only way the nostalgic Zellers can succeed is if it creates real value for Canadian customers,” says retail analyst Bruce Winder of the return of the store.

After years of being closed and absent, Zellers is back in business, taking its first step in Alberta. Starting this week, visitors to Edmonton’s Londonderry Mall can walk into the brand’s newly opened location and experience the atmosphere of yesteryear, though the reopening has been largely unheralded.

According to Henry Zverev, CEO of the mall’s owner, Leyad, the opening is going smoothly:

“They’re taking it slow and incrementally.”

The new location is located on one floor of a former Hudson’s Bay store, which closed across Canada after the chain filed for bankruptcy in June. Leyad said this is the first time a revived Zellers has opened in a former Bay location.

Meanwhile, the Hudson’s Bay name and trademarks have been transferred to Canadian Tire, but the deal does not include the Zellers brand or its revival project.

“Canadians are certainly excited, but we can’t forget that we’ve seen this kind of comeback before,” Winder said, referring to past experience.

He’s referring to 2023, when a Hudson’s Bay-managed Zellers temporarily reopened through pop-up stores in some Bay locations, but that short-lived experiment ended quickly.

This time, however, things are different.

“The current products are limited to women’s, men’s, children’s and home goods. They’ve essentially taken the profitable segments of the old Zellers. Now we’ll see how well the quality and price can satisfy customers.”

He emphasizes that to succeed in today’s market, Zellers must have a clear understanding of its customers:
“Having a clear target market and offering the right mix of quality and price will be key to success.”

However, an important question remains:
Will Zellers’ beloved restaurants be part of this comeback?

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