Zellers Returns: Canada’s Beloved Discount Retailer Makes a Nostalgic Comeback

By Hilton Bakedman, Economic Satirist and Retail Whisperer

Zellers, Canada’s iconic discount department store, is staging a major comeback with a new 60,000 square foot store in Edmonton’s Londonderry Mall. After more than a decade off the retail map, this beloved brand is returning to Canadian malls, seeking to capture consumers’ appetite for nostalgia and affordable shopping. The revitalized Zellers brings apparel, home goods, and discount merchandise back to the competitive Canadian retail landscape, hoping to reclaim a slice of the market that inflation and economic uncertainty have made ripe for value-based shopping. But first a word from today’s sponsor:

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Founded in 1931 by Walter P. Zeller, Zellers once dominated the Canadian discount retail market with hundreds of stores nationwide. Following acquisitions and the eventual decline tied to increasing competition from Walmart and Target’s failed Canadian expansion, Zellers disappeared from most shopping centers years ago. Recently, Zellers’ trademarks and intellectual property were transferred from the now-bankrupt Hudson’s Bay Company to Les Ailes de la Mode Inc., a Quebec retailer led by Isaac Benitah, who aims to reboot Zellers as a standalone discount retail brand with a modern twist.

For Canadian consumers, Zellers’ return is more than a nostalgia trip — it’s a new discount retail option amid an inflation-driven squeeze on household budgets. Economists view this comeback as a test of how well older Canadian retail brands can adapt to current market conditions skewed by rising prices and changing shopping habits. With retailers like Dollarama and Walmart thriving in the discount space, Zellers faces an economic challenge: can it find a niche and stay competitive in today’s price-conscious Canadian market?

Marketers should take note—Zellers’ relaunch is a textbook case in leveraging brand nostalgia alongside practical value messaging to attract diverse shopper demographics. The blend of a heritage brand with jump-started retail spaces and merchandise lines aims to foster emotional connections while serving pragmatic consumer needs. As Canadian shoppers increasingly seek affordable, local, and recognizable brands, Zellers’ comeback signals opportunity for smart retail branding focused on nostalgia and competitive pricing.

Q1: Is Zellers making a comeback in Canada?
A1: Yes, Zellers is officially returning with a new store opening in Edmonton’s Londonderry Mall in 2025, reviving its iconic discount retail brand.

Q2: Who owns the new Zellers brand?
A2: The trademarks and intellectual property of Zellers were transferred from Hudson’s Bay Company to Les Ailes de la Mode Inc., led by Isaac Benitah.

Q3: What products will the new Zellers store offer?
A3: The store offers a variety of household items, apparel for men, women, and children, and other discount merchandise.

Q4: Why is Zellers’ comeback important for Canadian consumers?
A4: Zellers provides an affordable, nostalgic shopping option that addresses inflationary pressures and growing demand for value in Canadian retail.

Q5: How does Zellers fit into the current Canadian retail landscape?
A5: Zellers returns as a competitor in the discount retail space alongside Walmart and Dollarama, aiming to cater to price-conscious Canadian shoppers with a familiar brand.