Canadian discount chain Zellers might be making a return to Ottawa as the brand looks to expand nationwide after the successful launch of its new store in Edmonton.
At the end of October, Zellers opened a new standalone shop at Londonderry Mall in Edmonton.
“Launching our first store exceeded our expectations in every way,” Joey Benitah, chief operating officer of Zellers, said in a press release Thursday. “The excitement we saw on opening day has continued well beyond the launch, with consistent customer traffic, overwhelmingly positive feedback, and sales performance that continues to surpass our internal targets.”
The opening also marked the official in-store reveal of Zeddy, the store’s mascot.
This week, the retailer announced it’s “actively pursuing new leasing opportunities across Canada” and is “focused on securing locations in every major Canadian market, with flexibility at the core of its real estate approach to ensure thoughtful, sustainable growth.”
While Zellers hasn’t revealed where future stores will pop up, retail analyst Bruce Winder told OBJ Friday that he thinks Ottawa is likely to be among them.
“If one assumes that they’re going to roll out the concept carefully to major markets in Canada, I think it’s fair to assume that Ottawa would be one of those markets,” he said. “Now, I don’t know if it would be one store or two stores. It would depend on how quickly they want to expand.”
If Zellers were to return to Ottawa, Winder mentioned there’s a chance it might take over some former Hudson’s Bay locations but maybe not downtown.
“It’s very much a value-based business model. I would assume that they might look at more economical real estate to make the numbers work … They’re also going to have to look for a value demographic, perhaps (in) malls outside of (downtown) Ottawa in the suburbs,” he said.
Winder believes Zellers could succeed because it’s a familiar name for Canadians.
“There’s a high sort of nostalgia feel for Zellers, particularly around the restaurant, which I don’t think is coming back but also Zeddy. Canadians grew up with Zellers … You’ve got an awareness that’s already there.”
Although nostalgia may play a role, Winder suggested that Zellers shouldn’t rely solely on it.
“This might hit the sweet spot as long as they don’t bet on nostalgia piece being a big part of it because at the end of the day Canadians like nostalgia but they’ve got to make ends meet and they’re not going to pay more for nostalgia.”
Winder added that rising inflation could make Zellers more appealing as shoppers become careful about their spending.
“There are lots of people who are watching their money right now who are having trouble making ends meet. What this offers is an alternative (that is) above Dollarama and Giant Tiger but below Walmart. There is an apparent appetite for value merchandise in Canada right now,” Winder said.
The original idea for Zellers started in Ontario during the 1920s with a revival happening in 1931. In 1978 HBC acquired most shares and took full ownership by 1981. At its height, Zellers operated 350 stores across Canada.
Tough competition led them to sell many leases off to American retailer Target and shut down all remaining stores by 2013. The last location in Ottawa closed its doors in 2020.
Tiny “shop-in-shop” sections featuring Zellers opened inside HBC stores earlier this year but were shut down along with HBC outlets last year.
Benitah’s family owns clothing chains such as Fairweather and International Clothiers along with houseware brands Bombay and Bowring. Les Ailes de la Mode Inc., another family-owned company named after a department store they once managed acquired rights for the name “Zellers,” including its logo and mascot bear Zeddy along with loyalty program Club Z back in August 2025.
This recent expansion project dubbed “Zellers 3.0” aims at creating “a small-format department store blending heritage with contemporary design,” offering men’s, women’s and children’s apparel alongside footwear, accessories and home essentials.
Last October Benitah mentioned focusing initially on former HBC properties while signing leases for individual floors or parts of spaces previously held by department stores limited up to 50 thousand square feet each.
– With files from
