Zellers, a Canadian department store, intends to reopen next year, a decade after closing the majority of its branches.

Zellers, a Canadian department store, intends to reopen next year, a decade after closing the majority of its branches.

In early 2023, Hudson's Bay Co. announced that Zellers would launch a new e-commerce website and extend its brick-and-mortar footprint within select Hudson's Bay department stores across the country.

According to the firm, the revamped Zellers would provide "a digital-first shopping journey that taps into the brand's nostalgia."

The comeback of Zellers comes as rising inflation drives shoppers to discount shops in quest of reduced costs, while current businesses like as Walmart, Dollarama, and Giant Tiger face tough competition.

It also comes amid an ongoing legal battle for the use of the Zellers trademark by a Quebec family.

Several recent trademark applications and company registers have been filed by the Moniz family, including Zellers Inc., Zellers Convenience Store Inc., and Zellers Restaurant Inc.

HBC accused the Moniz family of trademark infringement, goodwill depreciation, and passing off – the dishonest marketing or misrepresentation of goods — in a statement of claim filed last October.

According to retail expert Bruce Winder, the comeback of Zellers is likely due in part to the case.

"It's most likely tied to the trademark legal situation," he added. "For Zellers to truly declare, 'This is ours,' they must demonstrate that they are using it."

He believes Zellers will face an uphill struggle against entrenched competitors in the bargain retail industry.

"It might be a niche potential, and I hope it succeeds, but I don't see it returning effectively in large numbers."

Zellers was established in 1931 and was purchased by HBC in 1978.

With the tagline "Where the lowest price is the law," it operated as the discount branch of its flagship Hudson's Bay department stores.

The shop reached a peak of around 350 outlets in the late 1990s before succumbing to large box competitors such as Walmart.

HBC announced plans in 2011 to sell the bulk of its remaining Zellers leases to Target Corp., with the majority of locations shutting by 2013.

Until 2020, the business maintained a few Zellers sites operational as liquidation outlets.

Pop-up Zellers stores have recently opened within Hudson's Bay department stores in Burlington, Ont., and Anjou, Que.