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The return of Zellers: Hudson’s Bay to revive the Canadian low cost retail chain

Brett Bundel, Canadian Press

Printed Wednesday, August 17, 2022 10:20AM EDT

Final up to date on Wednesday, August 17, 2022 at 10:20AM EDT

Canadian division retailer Zellers hopes to make a comeback subsequent yr, a decade after the low cost chain closed most of its areas.

Hudson’s Bay Co. stated Zellers will debut a brand new e-commerce web site and increase its brick-and-mortar footprint to incorporate Hudson’s Bay malls throughout the nation in early 2023.

The corporate stated the relaunched Zellers “provides a digital-first buying journey that faucets into the model’s nostalgia.”

Zellers’ return comes as rising inflation prompts retailers to low cost in quest of decrease costs and stiffer competitors from current shops similar to Walmart, Dollarama and Large Tiger.

It additionally comes amid an ongoing lawsuit over using the Zellers model by the Quebec household.

The Moniz household owns Zellers Inc., Zellers Comfort Retailer Inc. and is behind numerous current trademark purposes and company registries, together with Zellers Restaurant Inc.

In a press release of declare filed final fall, HBC accused the Moniz household of trademark infringement, impairment of goodwill and so-called passing off — deceptive advertising or misrepresentation of products.

Retail analyst Bruce Winder stated Zellers’ reintroduction could possibly be a part of the lawsuit.

“It is in all probability associated to authorized points with logos,” he stated. “For jailers to essentially say, ‘That is ours,’ they’ve to point out that they are utilizing it.”

Zellers will face an uphill battle from rivals concerned within the low cost retail market, he stated.

“It could possibly be a very good alternative and I hope it really works, however I do not see it coming again efficiently.”

Zellers division retailer was based in 1931 and was acquired by HBC in 1978.

It operated as a reduction division of its flagship Hudson’s Bay malls with the slogan “The place lowest worth is the legislation”.

The shop reached a peak of about 350 areas within the late Nineteen Nineties earlier than shedding floor to big-box rivals like Walmart.

In 2011, HBC introduced plans to promote its remaining Zellers leases to Goal Company, closing a number of shops by 2013.

The retailer stored a handful of Zellers areas open by means of 2020 as liquidation shops.

The corporate just lately launched pop-up Zellers retailers inside Hudson’s Bay malls in Burlington, Ont., and Anjou, Que.

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