Zellers opens a dozen locations inside Hudson’s Bay stores amid wave of nostalgia, price sensitivity

A Zellers prototype store located within the Hudson’s Bay at Erin Mills mall, in Mississauga, Ont., on Feb.

27.Christopher Katsarov/The Globe and Mail

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

The relaunch of the popular discount department store comes amid a wave of nostalgia for the brand and growing demand for affordable goods amid sky-high inflation.

The company plans to open 25 stores in total.

The 10,000 square foot stores will be located within Hudson’s Bay department stores and feature an assortment of private-label products, including clothing, toys and home and living items.

Tiffany Bourre, a spokeswoman for Hudson’s Bay Co., says the products are exclusive to Zellers and there is no crossover of product with Hudson’s Bay stores.

A sneak peek inside the relaunch of Zellers, and what the resurrected discount chain means for Hudson’s Bay

The company has also launched a new 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.

Bourre says it’s about offering customers a “simplified and easy” shopping experience with low prices and quality products.

The relaunch of Zellers comes a decade after the discount department store closed most locations.

It 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 of the Zellers brand, evoking memories of its popular diner and its teddy bear mascot Zeddy.

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, Bourre said.

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 evoked 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 winded 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.