Zellers is preparing for a big box store comeback, of sorts. They’re launching their first new concept Stories store at Londonderry Mall in Edmonton! The quiet opening of this new location will be on Monday. It will be located in a key 60,000-square-foot space that used to be or still is Hudson’s Bay. It is the first new Zellers location to open in nearly a decade. This comes on the heels of the sale of the brand’s IP during Hudson’s Bay‘s liquidation process.
When complete, the Zellers store will fill the main floor of a two-story building. It would return a welcome old retail friend to its local shoppers. At first, the store will focus primarily on offering closeout apparel and home furnishings, creating an experience tailored to the needs of a wide mix of consumers. Returning is the ever-popular “Zeddy teddy bear” which creates great enthusiasm with customers.
Like Target, the Zellers brand, logos and other intellectual property were sold off recently. This sale allowed the company to fund $100,000 in payment to Restore Capital, one of Hudson’s Bay’s lenders. In some ways, this financial manoeuvre highlights the kind of saviour efforts that are being pursued around the Zellers brand. Henry Zavriyev, president and CEO of Leyad, shared his enthusiasm for the new joint venture. He emphasized the fact that most retailers currently have intense interest in the area once occupied by Hudson’s Bay.
“We think it’s a tremendous offering for Edmonton and for that Londonderry area.” – Henry Zavriyev
Zavriyev shared that Zellers plans to expand the variety of products it sells going forward. This smart move will enable the company to better respond to evolving consumer tastes. Recognizing the challenging retail climate, he pointed out that a number of Canadian consumers want to buy Canadian brands.
“We think that Canadian shoppers want to buy Canadian brands.” – Henry Zavriyev
The history and context around Zellers though, makes the beginning of its return a truly intriguing chapter in this story. In 2011, Hudson’s Bay determined to dispose of the great majority of its Zellers leases to competitor Target Corp. This manoeuvre completely shrank the brand’s footprint in Canada. The new ownership under the Moniz family of Quebec includes trademark applications for Zellers Inc., Zellers Convenience Store Inc., and Zellers Restaurant Inc., signifying a broader revival strategy for the iconic brand.
The Londonderry Mall location is a microcosm of a bigger trend. Traditional retailers are already making aggressive moves to change with the new consumer paradigm. Zavriyev noted that bringing Zellers back responds to a clear market need. This move especially responds to the needs of consumers and their desire for choice and value.
“The Zeddy teddy bear will be back.” – Henry Zavriyev
Zellers hopes to find a place in the competitive retail market landscape. Their slogan, “lowest price is the law,” is music to the ears of many a Canadian consumer. Zavriyev’s confidence in the store’s potential success is a strong combination of focus on fulfilling customer needs and desires, and bringing back the classic brand customers loved.
