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19 Jan

Resurrecting Zellers, HBC Sets Strategy

HBC is reviving Zellers in an enormous way.

HBC announced Wednesday that it’ll launch 25 Zellers shops, starting from 8,000 to 10,000 square feet, inside Hudson’s Bay department shops across Canada.

Simultaneous with the openings, set to start sometime this spring, the Zellers.ca e-commerce website will launch for Canadians. It’s possible HBC sets up greater than 25 outposts at its other Hudson’s Bay locations later within the yr and into 2024. Last yr, the corporate tested two Zeller pop-ups in two Hudson’s Bay stores.

The corporate stated, “Customers might be greeted with a thoughtful collection of design-led products across home decor, toys, baby, apparel and products for pets, housed inside Zellers’ signature red and white,” logo.

Zellers, a value-oriented discounter, first opened in 1931 and have become a serious retail player in Canada. HBC acquired Zellers in 1978. At its peak Zellers had greater than 300 freestanding stores within the ’90s.

However the business later floundered, running up against Walmart’s expansion into Canada amongst other competitors. HBC, unable to show around Zellers, focused on its other retail assets, and in 2011 sold most of the leases to Goal in a $1.83 billion deal, while retaining 64 locations. Nevertheless, the deal foreshadowed the eventual demise of the Zellers business.

Goal converted most of the Zellers sites to Goal stores, but some operational and pricing misfires and a failure to win over Canadian shoppers resulted within the liquidation of the Goal locations in Canada. Not too long after that HBC decided to liquidate the remaining Zellers sites, but retained ownership of the brand name. 

The Zellers shops shouldn’t cannibalize business from the the Hudson’s Bay department shops, considering Zellers merchandise is value-oriented, while Hudson’s Bay is more upscale and fashion-oriented.

Among the many 25 locations, Zellers shops might be inside Hudson Bay department shops in downtown Vancouver, Rideau Center in Ottawa, Erin Mills in Mississauga, Sunridge Mall in Calgary and Carrefou de l’Estrie in Sherbrooke.

Last week, Sophia Hwang-Judiesch became president of The Bay and Hudson’s Bay, succeeding Iain Nairn, who’s retiring.

HBC operates the 84 Hudson’s Bay stores and Thebay.com, which is a web-based marketplace. The stores and the e-commerce operation are separate firms. Founded in 1670, HBC is North America’s oldest company. The HBC portfolio also includes Saks Fifth Avenue and Saks Off fifth.

Zellers products.

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