Zellers is building momentum after opening its first new standalone store at Londonderry Mall in Edmonton last October, positioning the “Zellers 3.0” concept as a modern, value-driven take on the department store experience. The retailer says the launch has delivered strong traffic, enthusiastic customer response, and performance that continues to exceed internal expectations—an early signal that Canadians still want a convenient, affordable, multi-category shopping destination, especially when it is wrapped in a familiar name.
A comeback rooted in nostalgia, built for today’s shopper
From opening day onward, the Edmonton location welcomed waves of customers eager to experience the refreshed Zellers firsthand. The store’s approachable format—designed to feel easy to navigate—helped turn curiosity into immediate engagement. Shoppers responded positively to the blend of accessible pricing, a curated product mix, and brand elements that tap into long-standing emotional connection.
One of the most visible examples was the in-store return of Zeddy, Zellers’ beloved mascot. For families and longtime fans, that moment reinforced the brand’s place in Canadian retail culture and helped translate nostalgia into a shared in-store experience. For Zellers, it also underscored a key advantage: few retail brands have built-in cultural memory powerful enough to bring customers in the door before they have even seen the assortment.
A curated small-format department store model
The Edmonton store introduced a focused assortment across men’s, women’s, kids’ and baby apparel, along with footwear, accessories, home essentials, and seasonal categories. Zellers says shoppers were drawn to a mix of recognizable national and global brands alongside everyday lifestyle staples—an assortment strategy that aims to create “high perceived value” without overwhelming customers.
That product strategy matters because the Zellers 3.0 model is not trying to replicate the sprawling department stores of the past. Instead, it is leaning into a smaller-format approach that prioritizes clarity, discoverability, and repeat-visit convenience. In a market where consumers are often balancing price sensitivity with expectations for quality and choice, an edited department store can feel like a practical middle ground—more variety than a single-category retailer, but more efficient than legacy big-box formats.
Why the momentum matters for the functional food and CPG ecosystem
For consumer packaged goods companies and health-forward lifestyle brands, a potential Zellers expansion creates an important watchpoint. A growing chain of small-format department stores can become a meaningful traffic driver in malls and urban hubs—especially when the retailer is positioned as value-led, family-friendly, and seasonal in its merchandising approach.
While the current assortment mix leans heavily into apparel and home, the retailer’s public focus on evolving categories and adding brands over time suggests that supplier opportunities could widen as the concept matures. Retailers that can generate sustained foot traffic also tend to become stronger promotional partners, offering suppliers new access to family shoppers, impulse purchases, and seasonal bundle behaviour—all of which are relevant to the broader CPG landscape.
Executive commentary: exceeding internal targets
“Launching our first store exceeded our expectations in every way,” said Joey Benitah, Chief Operating Officer of Zellers. He noted that the initial opening-day excitement has continued, with consistent customer traffic, overwhelmingly positive feedback, and sales performance that continues to surpass internal targets. For the company, the sustained response validates both the strength of the Zellers name and the demand for a modern department store experience built around approachable value.
The takeaway is not simply that nostalgia sells. It is that nostalgia can be an efficient customer acquisition lever—if the store experience delivers real utility once shoppers arrive. Zellers is signalling that it believes it has found that balance: familiar brand DNA with a contemporary retail model.
Looking ahead: national expansion strategy
Following the Edmonton debut, Zellers says it is actively pursuing new leasing opportunities across Canada as part of a phased national expansion strategy. The company’s goal is to bring stores back to communities across the country, with an emphasis on securing locations in every major Canadian market. It also says it is keeping flexibility at the centre of its real estate approach to support thoughtful, sustainable growth.
At the same time, the retailer says it is listening closely to customer feedback to guide how it expands the assortment, refines the store experience, and introduces new categories and brands. Additional announcements related to new store locations, expanded assortments, and future phases of the Zellers 3.0 concept are expected in the coming months.
