Zellers Reopening: The Canadian Comeback of the Decade

Photo Credit: Monika Jaskolka via Retail Insider

“Where the lowest price is the law” was the slogan that Zellers promised to uphold for Canadians. Maintaining reasonable prices for the average consumer was a decision appreciated by customers across the country, so when the news broke of the popular retail chain’s eventual shutdown in 2013, it was received with dismay. It’s been ten years since the announcement of the doors of Zellers closing, and in an equal shock as its shutdown, news of Zellers reopening came in January with some novel and shocking changes. 

The plans for its reinstallation include 25 stores across seven provinces within the country. Two locations will be built within the Metro Vancouver area, one in Guildford Town Centre in Surrey and the other located in Pacific Centre in downtown Vancouver.

So after losing their footing in a financial situation, and almost 10 years of silence on the topic of Zellers from its owner, the Hudson’s Bay Company (HBC), why is it coming back now? 

According to an HBC press release, their decision to bring back the chain was influenced mainly by the goal to provide customers with a sense of nostalgia for the once beloved store, with the expectations that Canadians would embrace the chain known for endorsing discounts in a time where due to COVID-19 and record breaking inflation, the cost of living has grown significantly.

In the press release, one major change to the brand identity was made. The physical restaurants in Zellers that Canadians once loved will not be returning, and instead food trucks will be installed to try and appeal to the nostalgic value that the company is aiming to achieve. An online poll released by HBC was held to garner the public’s interest in what previous menu items they’d like to see return. 

The eventual menu released currently consists of five different items, after the previously mentioned vote’s “heated race”, as described by HBC. The items that made the cut are as follows: The Big Z Burger, the hot chicken sandwich, grilled cheese, chicken fingers, and fries with gravy. HBC claimed the food was meant to reflect “fan favorites“ served previously at Zellers locations. The food trucks are planned to be installed at several different Hudson‘s Bay locations, but when these installations are taking place will not be released until a later date.

Founded in 1931 in London, Ontario, before being purchased by HBC in 1978, the Zellers chain predominantly existed as a retail store selling a variety of goods from groceries, to appliances, and even fast food, with several locations featuring their own 1950s style diner. These restaurants served as convenient places for consumers to eat, but could also be rented out for events like children’s parties, equipped with retro vinyl boots, jukeboxes, and checkered floors.

The Zellers chain peaked in the 1990s, at one point having 350 stores across the country. Multiple factors contributed to its eventual shut down, including the overwhelming competition from Walmart. In 2011, the American retail chain Target bought out 125 Zellers locations from the HBC, leaving the parent company with only 64 remaining stores.

The American company was looking to expand into its neighbouring country after seeing the success from other retail stores like Walmart, and even Zellers  themselves. The success for Target in Canada seemed to be inevitable, however, after only two years of operation and around $2 billion in net losses, the Target locations within Canada would eventually be phased out of existence.

In 2012, Tiffany Bourré, an HBC company spokesperson, told CTV News that HBC decided that “continuing to operate the Zellers banner in its current form was not viable, particularly given the geographic footprint of the remaining locations.” As a result, in March 2013 a majority of Zeller stores began to close their doors to the public, although the last two Ontario locations were not officially shut down until January 2020.