Zellers, the iconic Canadian discount retailer, is set to relaunch on Thursday at Londonderry Mall in Edmonton. This marks another attempt to revive the brand, which has undergone several transformations since its inception in 1928. The new Zellers will focus on affordable family products while reducing the variety of merchandise offered compared to its previous iterations.

The revamped store will occupy smaller spaces and will feature men's, women's, and children's clothing, along with home goods, luggage, and seasonal items. However, categories such as toys and pharmaceuticals will be excluded from the new lineup. "At the heart of the operation will be value because that's the one thing that never goes out of style," said Joey Benitah, Zellers' chief operating officer.

Benitah's family has a long history in the Canadian retail market, owning various clothing and houseware brands. In August, they acquired the Zellers name, logo, and rights to its mascot, Zeddy, from Hudson's Bay Company (HBC), which had previously operated Zellers sections in its stores. The acquisition came after HBC faced significant financial difficulties, leading to its collapse under $1.1 billion in debt.

While Benitah did not disclose the purchase price, court documents suggest it could have been around $100,000. He described the opportunity to revive Zellers as a "once-in-a-lifetime opportunity," emphasizing the brand's storied history and value.

The Londonderry location will serve as a pilot for the brand's future, with plans to expand across Canada. Benitah aims to open Zellers stores in major markets, focusing on former HBC properties. He has signed leases for spaces that will not exceed 50,000 square feet, a significant reduction from the large stores Zellers once occupied. "We don't need 250,000 square feet, 200,000 square feet. That's not our vision for the future of Zellers," he stated.

The new Zellers will feature products from well-known brands such as Reebok, Spyder, Chaps, DKNY, Disney, Marvel, and Nickelodeon. Additional categories, including footwear, are expected to be introduced as the brand grows. A teddy bear version of Zeddy and a customization area for stuffed animals will also be launched next year. Furthermore, the company is exploring a partnership to support camps for children affected by cancer.

However, some aspects of Zellers' past will not return. Toys and pharmaceuticals are likely to be omitted due to competition from major retailers like Amazon and Walmart. "If we don't feel that we can offer very competitive or ideally, the best value in the Canadian market on any one particular department, I would rather stay away and let others focus on it," Benitah explained.

The classic Zellers diner will not be part of the new stores, but Benitah mentioned that exciting food and beverage concepts are in development. HBC had previously experimented with a diner concept during its brief revival of Zellers in 2023, which included a pop-up and a food truck.

Zellers was once a staple in Canadian retail, with 350 stores at its peak. However, most locations closed by 2013 due to declining viability, with the last two stores in Toronto and Ottawa shutting down in 2020. The upcoming relaunch aims to breathe new life into the brand while adapting to the current retail landscape.