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Zellers opens dozens of stores in Canada amid a wave of nostalgia and price sensitivity

Zellers opens dozens of stores in Canada amid a wave of nostalgia and price sensitivity

By Omayma othmani

Published: March 24, 2023

The Canadian retail chain Zellers celebrated its official return on Thursday, opening dozens of stores in Ontario and Alberta and launching a new website.

This discount store's comeback comes amid a wave of brand nostalgia and increasing demand for affordable goods as inflation has driven up the cost of living.

Hudson's Bay spokeswoman Tiffany Boury said the company plans to open 25 locations across Canada inside Hudson's Bay stores.

She also said the opening of additional stores will be gradual over time, and the retailer does not rule out the possibility of creating standalone locations.

The 10,000-square-foot Zellers stores feature a variety of products, including clothing, toys, and home and living goods, under the company's private label Anko.

All items both online and in stores also feature what is called circular pricing, for example $5 instead of $4.99 or $5.49.

The relaunch of Zellers comes after a decade since it closed most of its locations. At a time when Canadians are seeking relief from the highest inflation rate in almost 40 years, it provides more competition in the discount market largely dominated by Walmart, Giant Tiger, and Dollarama.

Also, while the footprint of the new Zellers stores—inside existing Hudson's Bay stores—does not accommodate a restaurant, the company will have food trucks at some locations offering top menu items.

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