From retail giant to ghost brand: The turbulent century of Canada's Zellers
In short: Founded in 1928, Zellers evolved from a modest department store into a national icon with 350 locations. Yet, after being swallowed by the Hudson's Bay Company and gutted by the arrival of American competitors, the brand has spent years in a bizarre cycle of liquidations, pop-up revivals, and corporate bankruptcy.
The story of Zellers began in London, Ontario, when Walter P. Zeller opened his first store in 1928. Although the chain initially faced bankruptcy, it was relaunched in 1931 and grew into a Canadian retail powerhouse. By the late 1990s, Zellers was a dominant force, peaking at 350 locations. Its expansion was fueled by strategic acquisitions, including the purchase of the Towers/Bonimart chain in 1990 and the Canadian division of Kmart in 1998. At its height, the company employed over 35,000 people and operated stores across the country, from Newfoundland to British Columbia.
The decline began as the company struggled to adapt to the retail landscape of the 2000s. In 2011, the Hudson's Bay Company sold the rights to nearly 200 of its store leases to Target, signaling the end of Zellers as a major independent chain. While the company attempted to pivot by liquidating inventory and focusing on higher-margin goods under CEO Mark Foote, it could not stem the tide of competition from Walmart. By 2013, most locations were shuttered, and the remaining few were converted into liquidation outlets for The Bay, eventually closing entirely by 2020.
The brand's recent history is defined by identity crises. In 2023, HBC attempted to revive Zellers as a store-within-a-store concept, but customers found the experience lacking the charm and value of the original. Following HBC's 2025 bankruptcy, the Zellers brand was acquired by Les Ailes de la Mode. This latest iteration opened in Edmonton in October 2025, marking the third time the chain has been relaunched in its nearly century-long history. Whether this new ownership can restore the brand's former status remains an open question in the volatile world of Canadian retail.
Opens the Intellect+ feed with this card first. Swipe up for the next one.
Sources
- Summary by Intellect · source: Zellers
To cite this card, link to https://intellectplus.co.uk/app/culture-zellers.
How we source, check and correct cards: Editorial standards.
General information, not professional advice. Spotted an error? Flag the card or see corrections and complaints.
Intellect Plus is a visual educational discovery platform for exploring fascinating facts and ideas. Brain Food, Not Brain Rot. What is Intellect Plus?
Related
More in Languages · More in Cultures · Latest · A–Z · All topics
