Zellers opens a dozen stores in Canada amid wave of nostalgia and price sensitivity

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

The relaunch of the favored low cost division retailer comes amid a wave of nostalgia for the model and rising demand for inexpensive items amid sky-high inflation.

The firm plans to open 25 shops in whole.

The 10,000 sq. foot shops can be positioned inside Hudson’s Bay shops and have an assortment of private-label merchandise, together with clothes, toys and residential and residing gadgets.

Tiffany Bourre, a spokeswoman for Hudson’s Bay Co., says the merchandise are unique to Zellers and there’s no crossover of product with Hudson’s Bay shops.

The firm has additionally launched a brand new Zellers e-commerce web site, with all gadgets on-line and in-store that includes so-called rounded pricing, so for instance $5 slightly than $4.99 or $5.49.

Bourre says it is about providing clients a “simplified and easy” buying expertise with low costs and high quality merchandise.

The relaunch of Zellers comes a decade after the low cost division retailer closed most areas.

It comes at a time when Canadians are searching for aid from the very best inflation in almost 40 years, providing extra competitors in a reduction market largely dominated by Walmart, Giant Tiger and Dollarama.

The resurrection of the retailer additionally faucets into the nostalgia of the Zellers model, evoking reminiscences of its widespread diner and its teddy bear mascot Zeddy.

While the footprint of the brand new Zellers shops — throughout the current Hudson’s Bay shops — doesn’t accommodate a restaurant, the corporate may have meals vans at some areas providing the highest menu gadgets, Bourre mentioned.

The 5 menu gadgets are the large “Z” burger, sizzling hen sandwich, grilled cheese, hen fingers and fries with gravy.

The chain’s Zeddy mascot — which arguably evoked a number of the biggest sentimentality amongst some former customers — is anticipated to make a return quickly, Bourre mentioned.

The mascot was adopted by a charity after Zellers winded down operations, she mentioned.

“Zeddy has been in active service since Zellers closed,” she mentioned. “He’s working hard in the background.”

The retailer is hoping to convey Zeddy again into shops quickly with a charity element, Bourre mentioned.

This report by The Canadian Press was first printed March 23, 2023.