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Hudson’s Bay to resurrect discount retail chain Zellers

Canadian department store Zellers hopes to make a comeback next year, a decade after the discount chain shuttered most of its locations.

Hudson’s Bay Co. says Zellers will debut a new e-commerce website and expand its brick-and-mortar footprint within select Hudson’s Bay department stores across the country in early 2023.

The company says the relaunched Zellers will offer “a digital-first shopping journey that taps into the nostalgia of the brand.”

Initial inventory will include housewares, furniture and toys, with apparel to be introduced later in the year. The company also plans to launch a private brand, according to the release.

The return of Zellers comes as soaring inflation drives consumers to discount retailers in search of lower prices. It follows Tuesday’s announcement from Hudson’s Bay that outdoor gear retailer MEC will open shops in three Bay department store locations this fall.

It also comes amid an ongoing lawsuit over a Quebec family’s use of the Zellers brand.

The Moniz family is behind various recent trademark applications and corporate registries, including Zellers Inc., Zellers Convenience Store Inc. and Zellers Restaurant Inc.

In a statement of claim filed last fall, HBC accused the Moniz family of trademark infringement, depreciation of goodwill and so-called passing off — the deceptive marketing or misrepresentation of goods.

Most stores closed by 2013

Hudson’s Bay launched a pop-up Zellers shop inside Hudson’s Bay department stores in Burlington, Ont., and Anjou, Que., in 2021. (Anis Heydari/CBC)

The Zellers department store was founded in 1931 and acquired by HBC in 1978.

It operated as the discount division of its flagship Hudson’s Bay department stores, with the slogan “Where the lowest price is the law.”

The store hit its peak of about 350 locations in the late 1990s, before losing ground to big-box competitors such as Walmart.

In 2011, HBC announced plans to sell the majority of its remaining Zellers leases to Target Corp., closing most stores by 2013.

The retailer kept a handful of Zellers locations open as liquidation outlets until 2020.

The company launched a pop-up Zellers shop inside Hudson’s Bay department stores in Burlington, Ont., and Anjou, Que., in 2021.

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