In the grand tapestry that is Canada's retail market, few names so closely relate to childhood in the 90s like Zellers. Once a figurehead of Canadian shopping culture, its rise, fall, and eventual comeback is a narrative so intriguing it will no doubt be turned into a loose biopic someday — probably starring a cast of entirely American actors.
Today, we're going to take a look into the story of Zellers in Canada, uncover the secrets of its success, the reasons for its decline, and the strategic moves that somehow breathed new life into the dying brand.
Join us as we delve deep into the captivating saga of the Canadian discount chain that simply refuses to fade into history.
Beginnings: A Zell of a start!
Zellers sometime in the 1950s HBC Corporate Collection
It all started with Walter P. Zeller. Born in 1890 in Waterloo County, according to Hudson Bay Company (HBC) Heritage, the Zellers founder started off working in stockrooms. However, once he got a taste of the retail game, he quickly moved up the ladder, landing gigs at renowned establishments.
By 1928, he had launched his own business and an early version of the Zellers brand began popping up in spots like London, Ontario and Guelph.
What's so interesting about Walter? He was a man known for being ahead of his time. He genuinely cared for his staff, affectionately called "Zellerfolk", giving them perks like Group Life Insurance long before it was the standard.
Heyday: The Zellers you remember
VINTAGE ZELLERS COMMERCIALS (1980s-1990s)www.youtube.com
1975 was a game-changer for Zellers. It's when they first rolled out their iconic red logo and shifted from "Zeller’s" to just "Zellers." Bold.
According to HBC, Zellers hit its stride in the 80s and 90s, hitting the $1 billion sales mark in 1983, $2 billion by 1989, and a jaw-dropping $3 billion in 1993.
Throughout this period the company expanded and tried out new ideas. The most iconic? Club Z, of course. The rewards program was all the rage. In fact, two years after its launch, half of Canadian households were flaunting their Club Z cards.
This is also right about the time Zeddy, the store's iconic bear mascot, came into being. In fact, every store was required to have a Zeddy costume. No, really. And kids could even join their own version of Club Z called the 'Zeddy Cub Club.'
The brand was slowly but surely taking over the country. So, where did it all go wrong?
Decline: The Target years
A defunct Zellers.Colin Temple | Dreamstime
If you came of age in the 90s, you probably remember Zellers being the place Canadians would flock to for all their discount shopping needs. But, sadly, as the company headed into the 2000s, things started to get real dicey. While Zellers had always been a trooper, facing tough challenges head-on, the digital age proved to be too tough of a nut to crack.
The arrival of fierce competitors, such as Walmart and online shopping madness had the iconic brand heading for disaster by the 2010s, and despite all the money HBC had made off Zellers, it was not about to go down with the ship.
In 2011, the US retail chain Target decided to enter the Canadian market, its plan? To usurp struggling Zellers locations. They saw an opportunity and jumped on it, striking a deal with HBC to take over a whopping 220 stores. Just like that, Zellers became Target, and Zeddy was forced into retirement.
However, this transition was far from seamless. Target grappled with a slew of challenges, from stocking issues to pricing disparities between their US and Canadian outlets. The company's hope of becoming the new Zellers was short-lived. By 2015, after a mere two years of operation, Target withdrew from Canada, shuttering all its stores and rendering thousands jobless.
Then, in a twist of irony seen throughout Zellers' history, the void created by Target's abrupt departure later became the catalyst for a spirited Zellers revival, backed by a powerful wave of nostalgia and a compelling PR campaign.
The Return of the Zeddy: Zellers in 2023
2023 has already become quite the trip down memory lane for Canadians, thanks to the Zellers brand's surprising comeback. HBC first pumped up the nostalgia in August 2022, announcing plans to reincarnate the beloved retail outlet. Not just as an online presence but also as a tangible "in-store experience" in select Hudson's Bay locations across the country.
The big reveal included the opening of nine Zellers stores in Ontario, with three major ones situated in the heart of the GTA — Scarborough Town Centre, Burlington Mall, and Erin Mills Town Centre. The twist? They're compact — essentially pop-up stores located within existing Hudson's Bay outlets. It's a nostalgic trip, for sure, but also a stark reminder of how far removed the brand's heyday really is.
On the plus side, these new Zellers locations boast an array of discounted home decor and cutting-edge electronics. The shelves are fully stocked with familiar favourites. Even the store's iconic diner made a comeback, this time in the form of branded food trucks.
The Zellers foodtruck burger.Tristan Wheeler | Narcity
This launch eventually spurred the introduction of about two dozen Zellers pop-ups within Hudson's Bay stores. Nowadays, 21 store-within-a-store concepts span five provinces, offering affordable yet stylish options — from trendy apparel to home furnishings. Most of these Zellers pop-ups opened in areas that hadn't experienced the revitalized brand before.
But, will we ever see another full-fledged Zellers store?
It's a definite "maybe." But there are indications of plans to push the brand further in the digital age.
Sophia Hwang-Judiesch, the president of Hudson's Bay, disclosed earlier this year that these pop-ups are more than just retail experiments. They're strategic moves designed to gather insights and shape the future direction for Zellers. In her words:
"Our customers are deeply intertwined with our growth journey. Together, we're not just reviving a brand; we're creating a shopping experience that resonates with Canadian communities."
Hopefully, this article has provided you with a brief history lesson on one of Canada's most iconic brands. Maybe we'll do Tim Hortons next.
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