HBC to resurrect Zellers, outlets to open inside Bay stores next year

It’s been a decade since Canadians heard the slogan “where the lowest price is the law,” but discount retail chain Zellers is hoping to make a comeback next year.

Hudson’s Bay Co. says that starting next year, Zellers will open an e-commerce website and “shop-in-shop” in-store locations that will offer “a digital-first shopping journey that taps into the nostalgia of the brand Canadians know and love, while introducing a refreshed identity and a unique and exciting product assortment for families at everyday value.”

HBC says a portion of their stores’ physical space will be dedicated to Zellers in select stores in major cities around the country.

The return of Zellers comes inflation has pushed consumers to discount retailers in search of lower prices.

“We know how special Zellers is in the hearts and minds of people in Canada. ‘Where the lowest price is the law’ was a calling card, which has helped Zellers establish itself as more than a retail destination, but a place to build and support community,” Adam Powell, Chief Business Officer, of Zellers said in a release.

“Zellers is a brand deeply rooted in the Canadian experience. Spanning generations, people hold distinct connections to Zellers through shared experiences with family and friends, and we look forward to building on that in the future.”

The Zellers department store was founded in 1931 and bought over by HBC in 1978, when it operated as the discount division of its flagship Hudson’s Bay department stores. The store hit its peak of about 350 locations in the late 1990s.

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., in 2020, and in Anjou, Que., in 2021.

The anticipated arrival 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.