Rebirth of a Discounter: Zellers Giving it Another Go in Canada

Can the third time be the charm for a retail brand? Zellers (Toronto), a Canadian discount store chain, is attempting to find out.

Following a restart last fall with the first “Zellers 3.0” location in Londonderry Mall in Edmonton, owner Les Ailes de la Mode Inc. (which acquired the Zellers trademarks from the now-defunct Hudson’s Bay Co. in August 2025) is moving ahead in seeking added locales, Retail Insider reports.

The 3.0 designation stems from this being a third distinct chapter in the brand’s history, RI notes: “Founded in 1931 by Walter P. Zeller, the chain grew into a national discount powerhouse before being acquired by Hudson’s Bay Company in 1978. At its peak in the late 1990s, Zellers operated roughly 350 locations across Canada.

“The brand’s decline in the 2000s culminated in the sale of many leaseholds to Target in 2011, leading to the closure of nearly all full-line stores by 2013. A brief “Zellers 2.0” revival under Hudson’s Bay launched in 2023 as shop-in-shops within Bay stores, but was ultimately wound down amid HBC’s financial collapse.”

Les Ailes de la Mode said the brand’s latest iteration will involve a smaller department store concept, with 30,000 – 50,000 square feet and a variety of references to its teddy bear mascot, Zeddy. The concept, the company said in the brand’s relaunch announcement last fall, is designed to “deliver a thoughtfully curated experience that blends heritage with contemporary design, offering Canadians an approachable retail destination.”

As for future locations, RI noted that taking either all or parts of former Hudson’s Bay Co. locations is a likely scenario. “Zellers’ strategy may involve occupying a single floor of a former department store, refreshing the space and operating while longer-term redevelopment plans unfold,” the news source reported. However, as of this posting, Zellers had not announced the opening of any other stores beyond the one in Edmonton.